Paying income tax using our cash adds to our expenses every month. However, there are ways that can help you to get tax relief so that you can pay less tax each year. The below pointers are an overview if you do not have time to watch the video shared in this article.
CPF SA/RA cash top-up
You can top up to $7k cash to your own, or your loved ones’ CPF SA/RA to save on taxes. This only qualifies if the CPF SA/RA has lesser than the full retirement sum, currently at $186k. There’s also CPF Matched Retirement Savings Scheme, the government will match dollar for dollar if you top up to your parents’ CPF, up to $600, under certain conditions.
Step-by-step guide: https://dollarsandsense.sg/rstu-top-up-cpf-special-account-sa-using-cash/
CPF Medisave cash top-up
You can also top up Medisave to save on taxes.
Top up SRS account
SRS is a scheme to help Singaporeans prepare for retirement. The benefit is you can withdraw the money anytime, but with 5% penalty if you withdraw early. You can use the money in SRS for investments. You are allowed to withdraw after you reach 62 years old, only 50% of the withdrawn amount is taxed.
There’s a 250% tax deduction for your donation. This scheme will be available till 2023.
If you take courses that are relevant to your profession, you can claim up to $5500 in tax relief.
Child tax savings
There’s a whole bunch of tax savings if you have children.
More info: https://www.iras.gov.sg/taxes/individual-income-tax/employees/your-situation/i-have-a-newborn
Parents tax savings
Besides children, you can also claim tax relief for your parents and grandparents.