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Singapore Guide

Tax Planning in Singapore

Top Rate

24%

SRS Cap

$15,300

Singapore has one of the lowest personal income tax rates in the world. Understanding the tax system, available reliefs, and optimization strategies can help you legally minimize your tax bill and keep more of your hard-earned money.

Core Education

Understanding Singapore's Tax System

Progressive Rates

0% to 24% based on income brackets

No Capital Gains Tax

Investment profits are tax-free

No Inheritance Tax

Estate duty abolished in 2008

Territorial Basis

Only Singapore-sourced income taxed

Tax Residency Status

Tax Resident

  • • Stayed in Singapore for 183+ days in a year
  • • Singapore Citizen or PR ordinarily residing here
  • • Eligible for progressive tax rates (0-24%)
  • • Can claim personal reliefs and deductions

Non-Resident

  • • Stayed in Singapore for less than 183 days
  • • Employment income taxed at flat 15% or resident rates (whichever is higher)
  • • Director fees, consultant fees taxed at 24%
  • • Cannot claim most personal reliefs

YA 2024 Onwards

Personal Income Tax Rates

Chargeable Income Tax Rate Gross Tax Payable
First $20,000 0% $0
Next $10,000 (up to $30,000) 2% $200
Next $10,000 (up to $40,000) 3.5% $550
Next $40,000 (up to $80,000) 7% $3,350
Next $40,000 (up to $120,000) 11.5% $7,950
Next $40,000 (up to $160,000) 15% $13,950
Next $40,000 (up to $200,000) 18% $21,150
Next $40,000 (up to $240,000) 19% $28,750
Next $40,000 (up to $280,000) 19.5% $36,550
Next $40,000 (up to $320,000) 20% $44,550
Next $180,000 (up to $500,000) 22% $84,150
Next $500,000 (up to $1,000,000) 23% $199,150
Above $1,000,000 24%

Annual Income

$60,000

Tax Payable

$1,950

Effective rate: 3.25%

Annual Income

$100,000

Tax Payable

$5,650

Effective rate: 5.65%

Annual Income

$200,000

Tax Payable

$21,150

Effective rate: 10.58%

Reduce Your Tax Bill

Tax Reliefs & Deductions

Tax reliefs reduce your chargeable income, which directly lowers your tax bill. Here are the main reliefs available to Singapore tax residents.

Personal Reliefs

Earned Income Relief

Up to $8,000

Automatically granted based on age:

  • • Below 55: $1,000
  • • 55 to 59: $6,000
  • • 60 and above: $8,000

Spouse Relief

$2,000

For married taxpayers with a spouse who has income of $4,000 or less in the previous year and is living with or supported by you.

Qualifying Child Relief (QCR)

$4,000/child

For each unmarried child who is under 16, or in full-time education, or serving NS. Child must have income of $4,000 or less.

Handicapped Child Relief

$7,500/child

For each handicapped child regardless of age, if mentally or physically handicapped.

Working Mother's Child Relief (WMCR)

15-25% of income

For working mothers who are married, divorced, or widowed. 15% for 1st child, 20% for 2nd, 25% for 3rd and subsequent.

Parent Relief

Up to $14,000

For supporting parents/grandparents aged 55+:

  • • Living with you: $9,000 (handicapped: $14,000)
  • • Not living with you: $5,500 (handicapped: $10,000)

Grandparent Caregiver Relief

$3,000

For working mothers whose parent or grandparent looks after their child who is 12 or younger.

NSman Relief

Up to $5,000

For NSmen, NSmen wives, and NSmen parents. Amount varies based on role and whether you performed NS activities.

Contribution-Based Reliefs

CPF Relief

Up to $37,740

Your mandatory CPF contributions are automatically deducted from your taxable income (up to the OW ceiling).

CPF Cash Top-Up Relief

Up to $16,000

$8,000 for top-ups to your own SA/RA, plus another $8,000 for top-ups to family members' accounts.

SRS Relief

Up to $15,300

Contributions to your Supplementary Retirement Scheme account (for Singapore citizens and PRs).

Life Insurance Relief

Up to $5,000

Only applicable if your CPF contributions are less than $5,000. Limited to lower of premiums paid or $5,000 minus CPF contributions.

Course Fees Relief

Up to $5,500

For courses, seminars, or conferences to maintain or upgrade skills for employment purposes.

Donations (250% deduction)

250%

Donations to approved Institutions of a Public Character (IPCs) qualify for 250% tax deduction.

Personal Income Tax Relief Cap

The total amount of personal income tax reliefs you can claim is capped at $80,000 per Year of Assessment.

Supplementary Retirement Scheme

SRS: Your Tax-Saving Retirement Account

What is SRS?

The Supplementary Retirement Scheme (SRS) is a voluntary savings scheme that helps you save for retirement while enjoying immediate tax benefits.

  • Contributions are tax-deductible (up to $15,300/year for citizens/PRs)
  • Investment gains within SRS are tax-free
  • Only 50% of withdrawals taxed at retirement age (62)
  • Can invest in stocks, bonds, ETFs, unit trusts, insurance

SRS Contribution Limits

Singapore Citizens & PRs $15,300

per calendar year

Foreigners $35,700

per calendar year

Example Tax Savings

If your marginal tax rate is 15% and you contribute $15,300:

Tax saved: $2,295

SRS Withdrawal Rules

Penalty-Free Withdrawals

  • • At or after statutory retirement age (currently 63)
  • • On grounds of death, medical, bankruptcy
  • • Only 50% of withdrawal amount is taxable
  • • 10-year withdrawal period (penalty-free)

Premature Withdrawals

  • • 5% penalty on withdrawn amount
  • • 100% of withdrawal is taxable
  • • Added to your income for that year
  • • Generally not advisable except emergencies

Smart Planning

Tax Optimization Strategies

1

Maximize SRS Contributions

Contribute the full $15,300 before 31 December each year. The higher your tax bracket, the more you save.

Best for: Those in 11.5%+ tax brackets
2

CPF Top-Up for Tax Relief

Top up your SA or family members' accounts. Up to $16,000 in relief ($8,000 self + $8,000 family).

Bonus: Earns 4% interest in SA
3

Strategic Charitable Donations

Donate to approved IPCs for 250% tax deduction. $1,000 donated = $2,500 deduction from taxable income.

Tip: Check if your employer has matching programs
4

Claim All Eligible Reliefs

Review all reliefs annually. Parent relief, spouse relief, and course fees are commonly overlooked.

Reminder: Keep receipts and documentation
5

Time Your Income & Expenses

If expecting a lower-income year ahead, consider deferring bonuses. Conversely, accelerate deductions in high-income years.

Caution: Check employer policies first
6

Spouse Relief Coordination

Only one spouse can claim child relief and parent relief. Claim under the higher-earning spouse for greater tax savings.

Check: Annual income comparison

Remember the $80,000 Cap

All personal reliefs combined cannot exceed $80,000. If you're already near the cap, prioritize higher-value reliefs first.

Mark Your Calendar

Important Tax Deadlines

DEC 31

SRS Contribution Deadline

Last day to contribute to SRS for tax relief in the current Year of Assessment. Don't wait until the last minute as bank processing may take time.

DEC 31

CPF Top-Up Deadline

Last day to make voluntary CPF contributions (cash top-ups) for tax relief in the current Year of Assessment.

MAR 1

Tax Filing Season Opens

IRAS starts sending out tax filing notifications. Most employees under Auto-Inclusion Scheme will have income pre-filled.

APR 15

Paper Filing Deadline

Deadline for submitting paper tax returns (Form B1). Late filing incurs penalties.

APR 18

E-Filing Deadline

Deadline for electronic tax filing via myTax Portal. This is the most common method used by individuals.

Avoid These Errors

Common Tax Planning Mistakes

Missing the SRS Deadline

Contributions must be made by 31 December. Many people rush in the last week and face bank processing delays. Set a reminder for early December.

Not Claiming Parent Relief

If you're supporting elderly parents, you may be entitled to up to $14,000 in relief per parent. Many forget to claim this.

Double-Claiming Reliefs

Child relief and parent relief can only be claimed by one person. Couples should coordinate to avoid issues with IRAS.

Forgetting Course Fees Relief

If you took any work-related courses, seminars, or certifications, you can claim up to $5,500. Keep all receipts.

Contributing to SRS Without Investing

SRS cash earns minimal interest. The power of SRS comes from investing the funds in stocks, ETFs, or unit trusts for long-term growth.

Exceeding the $80,000 Relief Cap

All reliefs combined cannot exceed $80,000. If you're high income with many reliefs, some may be wasted. Plan strategically.

Need Help With Tax Planning?

Tax planning is just one piece of your overall financial strategy. We can help you optimize your taxes while ensuring your investment, insurance, and retirement plans work together.

Discuss Tax Planning

For general education purposes only. Please consult a tax professional for personalized advice.

How This Connects to Your Financial Plan

Tax planning works best when integrated with your overall financial strategy