Best Tax Saving Tips for Singapore

Singapore offers numerous legitimate ways to reduce your tax burden. Understanding these options can help you keep more of your hard-earned money while staying fully compliant with IRAS regulations.

🇸🇬 Understanding Singapore's Tax System

Singapore has one of the most competitive tax systems in the world with:

• Progressive tax rates: 0% to 24% for residents

• No capital gains tax

• No inheritance tax

• Territorial tax system (foreign income generally not taxed)

2024/2025 Resident Tax Rates:

Chargeable Income	Tax Rate	Gross Tax Payable
First $20,000	0%	$0
Next $10,000	2%	$200
Next $10,000	3.5%	$350
Next $40,000	7%	$2,800
Next $40,000	11.5%	$4,600
Next $40,000	15%	$6,000
Next $40,000	18%	$7,200
Next $40,000	19%	$7,600
Next $40,000	19.5%	$7,800
Next $40,000	20%	$8,000
Above $320,000	22%	-
Above $500,000	23%	-
Above $1,000,000	24%	-

💰 CPF Relief — Your Biggest Tax Saver

Mandatory CPF Contributions

Your employer's and your own CPF contributions provide automatic tax relief:

Age Group	Employee Rate	Employer Rate	Total
55 and below	20%	17%	37%
55-60	15%	14.5%	29.5%
60-65	9.5%	11%	20.5%
65-70	7%	8.5%	15.5%
Above 70	5%	7.5%	12.5%

Maximum Relief: Up to $37,740 (for employees 55 and below with income ≥ $102,000)

Voluntary CPF Top-ups (Cash)

CPF SA/RA Top-up:

• Relief up to $8,000 for topping up your own SA/RA

• Additional $8,000 for topping up family members' SA/RA

• Total potential relief: $16,000

Example savings: If your marginal tax rate is 15%, a $16,000 top-up saves you $2,400 in taxes!

MediSave Top-up

• Relief up to $8,000 for voluntary MediSave contributions

• Separate from SA/RA top-up relief

• Helps with future healthcare costs while reducing taxes

🏠 Property & Rental Income Strategies

Rental Expense Deductions

If you have rental income, you can deduct:

Deductible Expense	What's Included
Property tax	Annual property tax paid
Fire insurance	Premiums for fire insurance
Repairs & maintenance	Costs to maintain rental condition
Interest on loans	Mortgage interest (for rental properties)
Agent commission	Fees paid to property agents
Furniture depreciation	If property is furnished

Owner-Occupied Property

While there's no direct tax relief for owner-occupied property mortgage interest, consider:

• Using CPF OA for mortgage payments (preserves cash flow)

• Property tax rebates when available

• HDB grants and subsidies for eligible buyers

📚 Education & Skills Upgrading

Course Fees Relief

Claim up to $5,500 for:

• Courses leading to academic/professional qualifications

• Seminars and conferences related to your trade

• Must be relevant to current or future employment

Eligible courses:

• University degrees and diplomas

• Professional certifications (CFA, ACCA, PMP, etc.)

• SkillsFuture-funded courses

• Language courses for work purposes

SkillsFuture Credit

• $500 initial credit (for Singaporeans 25+)

• Additional top-ups announced in budgets

• Not taxable income when used

• Can be combined with course fee relief

👨‍👩‍👧‍👦 Family-Related Reliefs

Spouse Relief

• $2,000 if spouse has income ≤ $4,000

• Spouse must be living with you or supported by you

• Cannot be claimed if spouse claims Working Mother's Child Relief

Qualifying Child Relief (QCR)

Child Status	Relief Amount
Unmarried child below 16	$4,000
Unmarried child 16+ in full-time education	$4,000
Unmarried child with physical/mental disability	$7,500

Working Mother's Child Relief (WMCR)

For working mothers (including self-employed):

Child Order	Percentage of Mother's Earned Income
1st child	15%
2nd child	20%
3rd+ child	25% each

Maximum combined WMCR: 100% of earned income

Parenthood Tax Rebate (PTR)

Child Order	Rebate Amount
1st child	$5,000
2nd child	$10,000
3rd+ child	$20,000 each

• One-time rebate per child

• Can be shared between parents

• Unused rebate carried forward

🎖️ NSman Relief

Category	Relief Amount
Active NSman	$3,000
NSman wife	$750
NSman parent	$750
Key appointment holders	Additional $2,000

Note: Relief is higher during active service years.

💼 Self-Employed Tax Strategies

Deductible Business Expenses

Category	Examples
Office costs	Rent, utilities, internet, phone
Equipment	Computer, furniture, tools
Transport	Business mileage, parking, ERP
Professional fees	Accounting, legal, consulting
Insurance	Professional indemnity, business insurance
Marketing	Advertising, website, business cards
Training	Courses, seminars, certifications

Productivity & Innovation Credit (PIC) Alternatives

While PIC has ended, consider:

• Enterprise Development Grant (EDG)

• Productivity Solutions Grant (PSG)

• Market Readiness Assistance (MRA)

These don't provide tax relief but offer grants that reduce expenses.

🏥 Life Insurance & Medical Relief

Life Insurance Relief

• Maximum $5,000 for life insurance premiums

• Reduces if CPF contributions exceed $5,000

• Formula: $5,000 - CPF contributions (if CPF > $5,000, no relief)

Supplementary Retirement Scheme (SRS)

One of the best tax-saving tools:

Feature	Singapore Citizens/PRs	Foreigners
Annual contribution cap	$15,300	$35,700
Tax relief	100% of contribution	100% of contribution
Withdrawal tax	50% of sum taxable	50% of sum taxable

Example:

• Contribute $15,300 at 15% marginal rate = $2,295 tax savings

• At retirement, only 50% is taxable at (likely) lower rates

CPF LIFE

• Provides lifelong retirement income

• Premiums paid from RA not separately deductible

• But RA top-ups qualify for tax relief

📊 Investment & Donation Strategies

Tax-Free Investment Income

Singapore does not tax:

• Dividends from Singapore companies (one-tier system)

• Capital gains from selling investments

• Interest from approved banks and finance companies

Charitable Donations

250% tax deduction for qualifying donations:

$1,000 donation	= $2,500 tax deduction
At 15% tax rate	= $375 tax savings

Qualifying institutions:

• Institutions of Public Character (IPCs)

• Approved charities

• Government organizations

Angel Investor Tax Deduction (AITD)

For investing in qualifying startups:

• 50% tax deduction on investment amount

• Maximum $500,000 investment per year

• Must hold shares for at least 2 years

🛡️ Foreign Domestic Worker Levy Relief

• $6,360 relief (2x annual levy of $3,180)

• For families with children below 16

• Or families with elderly/disabled dependents

• Only one claimant per household

📋 Tax Filing Checklist

Before 18 April each year, ensure you have:

✓ CPF contribution statements

✓ SRS contribution records

✓ Course fee receipts

✓ Donation receipts (IPC-registered)

✓ Rental income and expense records

✓ Insurance premium statements

✓ Records of family member support

💡 Top 10 Quick Tax-Saving Actions

Action	Maximum Relief/Savings
1. Top up CPF SA/RA	$16,000 relief
2. Contribute to SRS	$15,300 relief
3. Top up MediSave	$8,000 relief
4. Claim course fees	$5,500 relief
5. Make IPC donations	250% deduction
6. Claim spouse relief	$2,000 relief
7. Claim child reliefs	$4,000-$7,500 per child
8. NSman relief	$3,000-$5,000
9. FDW levy relief	$6,360 relief
10. Life insurance relief	Up to $5,000

⚠️ Common Mistakes to Avoid

1. Missing deadlines

• File by 15 April (paper) or 18 April (e-filing)
• Late filing = penalties and interest

2. Not claiming all reliefs

• Many reliefs require manual claims
• Review all available reliefs annually

3. Incorrect documentation

• Keep receipts for 5 years
• Ensure donation receipts have tax deduction numbers

4. Double claiming

• Some reliefs are mutually exclusive
• Check conditions carefully

5. Forgetting SRS contributions

• Must contribute by 31 December
• Not automatically included in tax return

Singapore's tax system rewards those who plan ahead. By understanding and utilizing these reliefs and deductions, you can significantly reduce your tax burden while building wealth for the future.

Start early each year to maximize your tax savings. The best time to plan for tax efficiency is at the beginning of the year, not when tax season arrives!