Introduction
In Singapore, financial management can be an important tool for survival, and good tax planning is an important part of this to get the best cash flow out.
Should tax planning be for high-profile High Net Worth Individuals (HNWIs)? As long as you need to submit tax returns, you need to plan for taxes. It is important to note that your tax obligations affect your income, and good tax planning can translate into significant savings over time.
Seek Out Tax Exemptions and Effective Discounts
Singapore's personal tax rates are improving, ranging from 0% to 22% (YA 2018) with an annual income of more than S $ 320,000. There are a number of services and permissions that will allow you to save on your personal taxes.
Tax deductions for revenue you can check, are provided by being aware of your contributions to areas that are consistent with government policies. For example, certain agreements are available to support parenting and family building, caring for aging parents, developing professional skills, national service, etc.
Some of the benefits you may want include freedom from your spouse, child support, parental freedom, a grant, and the exemption of a foreign slave tax, among others. They are all subject to certain conditions.
Enter Your CPF (Central Provident Fund)
The CPF Minimum Sum Topping-Up Scheme allows you to claim a tax rebate when you combine your CPF savings. You can also ask for relief if the filling is done by your employer.
This means that if you replenish your family members' retirement account or special account for additional assistance, provided that their annual income does not exceed S $ 4,000 in the previous year.
In addition to your child's CPF, spouse, parents, or grandparents' CPF, you can request additional assistance equivalent to the additional amount, up to S $ 7,000.
The maximum CPF top-up relief you can do per year is S $ 14,000 (Maximum).
Contribute to SRS (Supplementary Retirement Scheme)
The Supplementary Retirement Scheme (SRS) is a voluntary program to encourage people to save for retirement, in addition to their CPF savings. Donations to SRS are tax-deductible and deductible from your taxable income. Investment returns are tax-free prior to withdrawal and only 50% of SRS tax is deducted at retirement. For Singapore and Singapore residents permanently, the maximum allowance is $ 15300 - YA 2018 per year, and the snow is $ 35700 - YA 2018 for Singapore business visa holders.
Voluntary Contribution to Your Medisave Account
Get comfortable with any money you earn in the year your voluntary MediSave donations are made. This method helps you to reduce the amount of taxes you have to pay at the same time saving for your health care needs.
The amount of assistance approved by Medisave voluntary donations is limited to the following: (1) Voluntary donations made specifically to the Medisave Account; (2) The CPF Annual Limit reduces the compulsory contribution made by you and your employer; or (3) Prevailing Medisave Contribution Ceiling of $ 48500 ($ 49800 - YA 2018) under balance in a Medisave Account prior to your voluntary donation.
To Reduce Your Personal Taxes In Singapore Make A Donation
In Singapore, donations made to any accredited Public Entity Center (IPC) or Qualified Philanthropic Grant Agency are tax-deductible.
Generally, you will require double taxation (i.e. double the amount) of contributions that fall under any of the following categories: (1) financial contributions; (2) sharing of donations; (3) computer donations; (4) art donations; (5) a public art tax promotion scheme; and (6) land and building donations.
The government will act in accordance with the state of the economy and the public interest in promoting or restricting certain activities in order to meet the national interests. Making a voluntary donation is not just about doing a good deed, and enjoying a great reduction in your tax obligations. For example, donations made between 2009 and 2018 that are eligible under double taxation will be temporarily eligible for tax deduction 2.5 times.
Apply for the Common Residence Program (NOR).
Enjoy a period of 5 years of tax benefits (YA) if you qualify under the General Residency (NOR) scheme.
You must meet both of the following conditions: (1) You were not in Singapore for 3 years before the year eligible for the NOR program; and (2) You are a citizen of the YA tax you wish to qualify for in the NOR system.
Rental Fees can be deducted from Rental Fees
The rental fee is taxable, so the corresponding costs are deducted.
Examples of such deductions are property taxes, interest rates, fire insurance, governing body maintenance fees, or general maintenance and repair costs. Make the following check:, rental costs are deducted when made: (1) for the purpose of generating rental income; and (2) at the time of leasing.
The above are general tips for reducing your Singapore tax burden. It is always best to plan before the end of the foundation period. If your tax situation is different, or if your needs are very clear, consider consulting a Singapore tax professional.
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