How do you save on your taxes?

neolaw

Senior Member
Joined
Aug 19, 2010
Messages
813
Reaction score
0
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.

Foreigner on EP. I don't have any SRS account with any operator right now.

I want to open SRS account with OCBC. I don't have time so I want to make just ONE visit to the branch.

I already have 360 Deposit account, Plus Deposit account and BCIP accounts with OCBC.

Please list down the documents I need to bring (so that I don't need to make a second visit).

Regards,
 

OCBC Bank

Suspended
Joined
Sep 13, 2013
Messages
6,964
Reaction score
119
Foreigner on EP. I don't have any SRS account with any operator right now.

I want to open SRS account with OCBC. I don't have time so I want to make just ONE visit to the branch.

I already have 360 Deposit account, Plus Deposit account and BCIP accounts with OCBC.

Please list down the documents I need to bring (so that I don't need to make a second visit).

Regards,

Hi neolaw

Simply bring along your Passport & Employment Pass when you visit our branch, to open the SRS account.

^Shereen
 

makeupconnect

Member
Joined
Jan 21, 2012
Messages
319
Reaction score
0
Time to file those taxes.

Make sure you know your tax saving tips, include all the relevant rebates and reliefs to save some money, as seen here.
 

lamEduDe

Senior Member
Joined
Aug 23, 2006
Messages
853
Reaction score
0
If im preparing to get married within 2-3 years, should i top up cpf or contribute to srs to save tax or save the cash first? Considering i've got bto and wedding expense coming up.
 

Laneige

Honorary Member
Joined
Dec 21, 2009
Messages
103,007
Reaction score
11,799
piang didn't do anything much to reduce tax
this yr how to reduce? the links provided for 2014... both sites cannot be found :(
 

sashti90

Junior Member
Joined
Feb 11, 2016
Messages
79
Reaction score
0
SRS

Hi, you can open a SRS account with a reputable bank like OCBC and use it to invest. If you have contributed to the SRS, you can claim SRS Tax Relief in the Year of Assessment following the year of contribution. The maximum SRS contribution for a Singaporean/Singapore permanent resident and foreigner is $12,750 and $29,750 respectively in 2015. (IRAS)

Withdrawals are penalty-free only if they take place after the statutory retirement age that was prevailing at the time of your first SRS contribution. The statutory retirement age for all SRS members is currently at 62. (IRAS)

Mod:Unsolicited Content (Commercial solicitation / Ads / Referrals / Spam)

piang didn't do anything much to reduce tax
this yr how to reduce? the links provided for 2014... both sites cannot be found :(
 
Last edited by a moderator:

dcloud

Junior Member
Joined
Oct 8, 2015
Messages
34
Reaction score
0
If im preparing to get married within 2-3 years, should i top up cpf or contribute to srs to save tax or save the cash first? Considering i've got bto and wedding expense coming up.
similar situation to you. i would save more cash first.
 

Laneige

Honorary Member
Joined
Dec 21, 2009
Messages
103,007
Reaction score
11,799
Hi, you can open a SRS account with a reputable bank like OCBC and use it to invest. If you have contributed to the SRS, you can claim SRS Tax Relief in the Year of Assessment following the year of contribution. The maximum SRS contribution for a Singaporean/Singapore permanent resident and foreigner is $12,750 and $29,750 respectively in 2015. (IRAS)

Withdrawals are penalty-free only if they take place after the statutory retirement age that was prevailing at the time of your first SRS contribution. The statutory retirement age for all SRS members is currently at 62. (IRAS)

Mod:Unsolicited Content (Commercial solicitation / Ads / Referrals / Spam)

tax relief is claimed as expenses? means eg 12000, 20% payable of tax for $12000 = taxes saved?
or i can save $12000 of taxes? dont think so good hor :s13: govt higher level
 

ryuunix

Junior Member
Joined
Dec 16, 2008
Messages
12
Reaction score
0
The main ways are always CPF top-up, SRS, reliefs and charity. But honestly CPF top-up and SRS can help to decrease a income bracket level at the most. Charity, depending, might not be worth it. Reliefs are based on individual cases. If you are a partner or business owner, then there can be more freedom in lowering even more taxes, especially for doctors, lawyers and dentist occupations.
 

Niaoson

Master Member
Joined
Apr 20, 2007
Messages
4,306
Reaction score
6
The main ways are always CPF top-up, SRS, reliefs and charity. But honestly CPF top-up and SRS can help to decrease a income bracket level at the most. Charity, depending, might not be worth it. Reliefs are based on individual cases. If you are a partner or business owner, then there can be more freedom in lowering even more taxes, especially for doctors, lawyers and dentist occupations.

Actually, does dropping a tax bracket really help that much? Given that Singapore practices progressive taxation whereby only the incremental amount gets taxed at a higher rate and the income before that gets taxed at the same rate still.

And how can lawyers, doctors and dentists further lower their tax?
 

Parka

Master Member
Joined
Jan 26, 2003
Messages
3,483
Reaction score
169
Actually, does dropping a tax bracket really help that much? Given that Singapore practices progressive taxation whereby only the incremental amount gets taxed at a higher rate and the income before that gets taxed at the same rate still.

And how can lawyers, doctors and dentists further lower their tax?

Take for this income bracket for example
First $40,000 - $550
Next $40,000 - 7%

Say your taxable income is $60,000. With cash top-up CPF relief and SRS relief, say you contribute $20,000. That's $20,000 x 7% = $1,400 less tax.
 

Laneige

Honorary Member
Joined
Dec 21, 2009
Messages
103,007
Reaction score
11,799
First $120,000 - 7,950 Gross Tax Payable ($)
Next $ 40,000 - 15% = 6,000 Gross Tax Payable ($)



First $160,000 - 13,950 Gross Tax Payable ($)
Next $ 40,000 - 17% = $6,800


so for those e.g. in the 160k and want to go down 1tier to 120k, must / can only do CPF deposit? liked this if the person is 160k, must deposit 40k to CPF to save on the (13950 - 7950) tax??? but the money deposit into CPF, when can get to see or even got chance to take out or not?

Thanks!
 

Trazora

Arch-Supremacy Member
Joined
Apr 19, 2015
Messages
22,828
Reaction score
1,030
First $120,000 - 7,950 Gross Tax Payable ($)
Next $ 40,000 - 15% = 6,000 Gross Tax Payable ($)



First $160,000 - 13,950 Gross Tax Payable ($)
Next $ 40,000 - 17% = $6,800


so for those e.g. in the 160k and want to go down 1tier to 120k, must / can only do CPF deposit? liked this if the person is 160k, must deposit 40k to CPF to save on the (13950 - 7950) tax??? but the money deposit into CPF, when can get to see or even got chance to take out or not?

Thanks!

There is limit to the amount of CPF top up that can give tax relief eg $7000 in one's SA and other $7000 to family member SA. There is also SRS.

Can withdraw amounts from OA+SA above full retirement sum (FRS) at 55 years old. Can also opt to withdraw another 20% from the FHR which goes to the retirement account.

https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/cpf-withdrawals-at-55-years-old
 
Last edited:

koja6049

Master Member
Joined
Nov 5, 2015
Messages
4,717
Reaction score
0

doody_

Supremacy Member
Joined
Nov 27, 2006
Messages
7,508
Reaction score
5
First $120,000 - 7,950 Gross Tax Payable ($)
Next $ 40,000 - 15% = 6,000 Gross Tax Payable ($)



First $160,000 - 13,950 Gross Tax Payable ($)
Next $ 40,000 - 17% = $6,800


so for those e.g. in the 160k and want to go down 1tier to 120k, must / can only do CPF deposit? liked this if the person is 160k, must deposit 40k to CPF to save on the (13950 - 7950) tax??? but the money deposit into CPF, when can get to see or even got chance to take out or not?

Thanks!

Another option is to resign from your job and look for a lower paying job at 120k per annum :o
 
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Community Guidelines and Standards, Terms of Service and Member T&Cs for more information.
Top