How to Reduce Income Tax in Singapore


Eh, bro! So, you're thinking about how to keep more of your hard-earned money away from the taxman in Singapore? No worries, you're in the right spot. Knowing how to legally reduce your income tax isn't just smart; it's essential.

How to Reduce Income Tax in Singapore


Importance of Understanding Tax Reduction

With the right knowledge, you can optimize your financial situation. The key here is to balance between paying your fair share and not leaving any reliefs unclaimed.

Basic Concepts of Income Tax

Before diving into the nitty-gritty, let's quickly touch on some foundational points.


Income tax is what you pay from what you earn. It's progressive in Singapore: the more you earn, the higher the percentage you pay.

Tax Residency in Singapore

Your tax rates and entitlements can differ based on whether you're seen as a tax resident. Typically, if you've been in Singapore for over 183 days in a year, you're considered a tax resident.

Legal Methods to Reduce Income Tax

Alright, now to the meat of the matter.

Tax Reliefs and Rebates

These are like discounts on your income tax. Familiarise yourself with the various reliefs available, like the Qualifying Child Relief or Parent Relief. Use them!

Supplementary Retirement Scheme (SRS)

Contributing to the SRS not only ensures you're saving for retirement but also reduces your taxable income. Win-win, lah!

Charitable Donations

Feeling generous? When you donate to approved institutions, you can get a 250% tax deduction in most cases. Doing good feels good and helps with taxes too!

Tax Planning

Plan your investments wisely. Some investments offer tax reliefs. Also, if you're receiving a bonus, consider whether deferring it to a year where you might earn less could be beneficial.

Mistakes to Avoid

No one's perfect, but avoiding these pitfalls can save you a lot.

Common Overlooked Reliefs

NSman reliefs or Handicapped Brother/Sister Relief are often forgotten. Don't miss out!

Misunderstandings About Tax Reduction

Remember, it's about legal methods. Tax evasion is a crime, but tax avoidance (using legal means) is being financially savvy.


So there you have it, mate! Reducing your income tax in Singapore isn't about dodging your responsibilities. It's about understanding the system and making it work for you. With a bit of effort, you can ensure you're not paying more than necessary. So, ready to tackle this tax season like a pro?

Frequently Asked Questions

Q1: Is the tax rate higher for non-residents in Singapore?

Answer: Yes, non-residents have a different tax rate, and it's generally higher than for tax residents.

Q2: Can I seek extensions if I can't pay my taxes on time?

Answer: Yes, you can contact IRAS to discuss possible payment plans.

Q3: What if I realize I made a mistake after submitting my tax forms?

Answer: You can make amendments via the myTax Portal. It's better to correct it sooner rather than later!

Q4: Are there penalties for late tax payments?

Answer: Yes, late payments can result in penalties. Always try to pay on time.

Q5: How can I ensure I've declared all my income sources?

Answer: Regularly review and update your financial records. Keep track of all income streams, big or small.

Post a Comment

Cookie Consent
We serve cookies on this site to analyze traffic, remember your preferences, and optimize your experience.
It seems there is something wrong with your internet connection. Please connect to the internet and start browsing again.
AdBlock Detected!
We have detected that you are using adblocking plugin in your browser.
The revenue we earn by the advertisements is used to manage this website, we request you to whitelist our website in your adblocking plugin.
Site is Blocked
Sorry! This site is not available in your country.