Singapore Personal Tax Saving Strategies

Personal Tax Saving Strategies www.rikvin .com Claim Applicable Personal Reliefs Earned Income Spouse/Handicapped Spouse Relief Qualifying/Handicapped Child Relief Relief Working Mother's Child Relief Parent/Handicapped Grandparent Caregiver Relief Parent Relief Handicapped Sibling Relief Life Insurance Relief CPF/Provident Fund Relief Foreign Maid Levy Relief CPF Cash Top-up Relief Course Fees Relief Supplementary Retirement Scheme (SRS) Relief National Service/NS Man Relief Contribute to the Supplementary Retirement Scheme John (mid-income) Joe (high-income) Salary $80,000 $140,000 Bonus $10,000 $40,000 Total Income $90,000 $180,000 Plan for Retirement while saving taxes Less: Tax relief (CPF, child, & personal relief) $20,000 $30,000 The Supplementary Retirement Scheme (SRS) is a voluntary government-managed long-term savings scheme. It aims to encourage individuals to save for retirement in addition to compul- Without SRS With SRS Witout SRS With SRS SRS $0 $12,750 $0 $12,750 Total Relief $20,000 $32,750 $30,000 $42,750 sory CPF savings. Each dollar contributed to the SRS reduces Chargeable Income $70,000 $57,250 $150,000 $137,250 the contributor's chargeable Total Tax $2,650 $1,758 $12,450 $10,538 income by a dollar. Potential SRS Tax $892 $1,912 Savings per Year Other Tax Saving Tips % Top-up Your / Your Spouse's / Your Parents' CPF Make a Voluntary Contribution to Your Medisave Make a Charitable Donation to Claim More than Double Account Account Tax Deductions Personal Tax Under the NOR Scheme Not Ordinarily Resident Scheme travelled outside Singapore * employed by Singapore company from 1 Jan 2015 for S$ 500,000 100 days Annual Income for YA 2016 * for business purposes only Tax Payable with NOR Tax Payable without NOR S$ 50,753 S$ 78,150 Total Tax Savings Under the NOR Scheme $ 27,397 Note: If the tax on the apportioned income is less than 10% of your total employment income, you will still be subject to a tax of 10% of your total employment income. RIKVIN RIKVIN PTE LTD| 30 Cecil Street, #19-08 Prudential Tower, Singapore 049712 Phone: (+65) 6320 1888 | Fax: (+65) 6438 2436 | [email protected] | www.rikvin.com