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How do you save on your taxes?

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Old 11-12-2013, 04:50 PM   #16
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for DBS, does the promotion includes existing account?
Yes it does.
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Old 12-12-2013, 09:01 AM   #17
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The best way to enjoy tax savings is as such:-

Enjoy tax savings of up to 56% by opening an OCBC SRS account with $8,000.

In addition, you may also receive a $30 Robinsons shopping vouchers.
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Old 13-12-2013, 12:51 PM   #18
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open srs account with ocbc. this is confirm the best-est answer.

for self-employed, engage ocbc sme banking to get their domain experts to advise on all the iras benefits (PIC etc).

julian, pls let me know when's the lunch, thanks lol.

Last edited by chopra; 13-12-2013 at 12:55 PM..
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Old 13-12-2013, 12:54 PM   #19
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on a side note, if your srs capital gain is gao gao when you retire, you will risk paying more tax.

this is v impt point tt many neglect. ocbc, your expert view?
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Old 13-12-2013, 03:06 PM   #20
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on a side note, if your srs capital gain is gao gao when you retire, you will risk paying more tax.

this is v impt point tt many neglect. ocbc, your expert view?
Worrying about being too successful and having too much capital gains? Seriously

Besides, there is no difference in the treatment of capital gains whether inside or outside SRS. This is a common misconception. In fact, with good planning of withdrawals, SRS allows you to pay no taxes on the money.
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Old 13-12-2013, 07:55 PM   #21
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Too bad I have a srs account elsewhere already
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Old 22-12-2013, 03:00 PM   #22
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For the more adventurous ones, set up a non incorporated business where your personal tax is combined together with your sole proprietor or partnership business.

With proper tax planning, you could have some tax savings.


Also, perform an analysis with your spouse to ascertain if joint assessment will reap some savings as compared to single assessment
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Old 22-12-2013, 03:45 PM   #23
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if i can earn more... i dont mind paying more tax...
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Old 23-12-2013, 08:29 AM   #24
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Worrying about being too successful and having too much capital gains? Seriously

Besides, there is no difference in the treatment of capital gains whether inside or outside SRS. This is a common misconception. In fact, with good planning of withdrawals, SRS allows you to pay no taxes on the money.
Hey lzydata, I believe you got it wrong. Capital gain outside SRS is not subjected to tax. But capital gain inside SRS might be subjected to tax upon withdrawal if you exceed the lower limit.


====

investment gains will accumulate tax free in SRS
Tax will be payable only when you withdraw your SRS savings(comprising both your SRS contributions and gains on investments).

If you withdraw your SRS savings upon retirement *, only 50% of the savings withdrawn will be subject to tax. You may also spread your withdrawals over a period of up to 10 years to meet your financial needs. Spreading out your withdrawals will generally result in greater tax savings.

http://app.mof.gov.sg/data/cmsresour...%2018Feb11.pdf

Last edited by chopra; 23-12-2013 at 08:31 AM..
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Old 23-12-2013, 08:51 PM   #25
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Hey lzydata, I believe you got it wrong. Capital gain outside SRS is not subjected to tax. But capital gain inside SRS might be subjected to tax upon withdrawal if you exceed the lower limit.
For a realistic illustration of why this is wrong, see MOF's FAQ. Here is a simplified example.

Suppose you are able to get 900% capital gains on your investment, and assume your current and future tax bracket is both 10%. You start off with $10k.

No SRS: First, you pay income tax of $1k. You have $9k left. Then you invest it, and x years later, you have $90k.

SRS: You contribute the $10k to your SRS account, so you can invest the whole amount. X years later, you have $100k. If you withdraw it in one shot, you are left with $100k x 90% = $90k.

$90k = $90k. There is no difference, capital gains or otherwise.

In fact, the SRS case above is not accurate. With competent planning, you need only pay minimal or even no taxes on your SRS funds.

First, only 50% of the withdrawn amount will be taxed. Hence the tax payable in future is $5k, not $10k. $95k > $90k.

Also, you can choose to withdraw not in one shot, but up to over 10 years. Suppose you withdraw the $100k over 3 years i.e. $40k, $40k, $20k. Assuming you have no other income, you will pay no income taxes for these withdrawals. So you are left with the full $100k.
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Old 02-01-2014, 12:29 PM   #26
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For a realistic illustration of why this is wrong, see MOF's FAQ. Here is a simplified example.

Suppose you are able to get 900% capital gains on your investment, and assume your current and future tax bracket is both 10%. You start off with $10k.

No SRS: First, you pay income tax of $1k. You have $9k left. Then you invest it, and x years later, you have $90k.

SRS: You contribute the $10k to your SRS account, so you can invest the whole amount. X years later, you have $100k. If you withdraw it in one shot, you are left with $100k x 90% = $90k.

$90k = $90k. There is no difference, capital gains or otherwise.

In fact, the SRS case above is not accurate. With competent planning, you need only pay minimal or even no taxes on your SRS funds.

First, only 50% of the withdrawn amount will be taxed. Hence the tax payable in future is $5k, not $10k. $95k > $90k.

Also, you can choose to withdraw not in one shot, but up to over 10 years. Suppose you withdraw the $100k over 3 years i.e. $40k, $40k, $20k. Assuming you have no other income, you will pay no income taxes for these withdrawals. So you are left with the full $100k.
there are ppl srs-ing the max amt each year. this will add up to alot of money.
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Old 02-01-2014, 07:18 PM   #27
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there are ppl srs-ing the max amt each year. this will add up to alot of money.
Sure. The more money they contribute, the less taxes they need to pay.
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Old 18-01-2014, 01:57 PM   #28
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Hi folks,

What are some of the ways that you save on your taxes? Share your ideas here.
We’ll invite some of the best contributors to this thread out for lunch.

^Andi P.


talk only?
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Old 29-01-2014, 11:36 PM   #29
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My only contribution is:
1. Buy from duty-free shop @ changi airport (e.g. watsons)

Can i get free lunch as well? (Weekend?)
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Old 20-02-2014, 07:26 AM   #30
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do we need to pay any fee to open srs at ocbc and if we have say 20k deposits gradually, can use funds for ocbc fixed deposit as investment gains?

Thanks
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