Singapore offers one of the most competitive tax systems in the world, but that doesn’t mean you shouldn’t take full advantage of legal tax-saving opportunities. This guide outlines the best legitimate ways to reduce your Singapore tax bill—covering CPF top-ups, SRS contributions, donation deductions, and other IRAS-approved tax reliefs.
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💰 Top Up Your CPF Accounts (Retirement Sum Topping-Up Scheme)
- Get up to SGD 8,000 tax relief for topping up your own CPF Special Account (SA) or Retirement Account (RA).
- Additional SGD 8,000 relief for topping up your spouse’s or parents’ accounts, provided their annual income is ≤ SGD 4,000.
- Ideal for boosting retirement savings while reducing taxable income.
🏦 Contribute to the Supplementary Retirement Scheme (SRS)
- Tax relief up to SGD 15,300 for Singaporeans/PRs, SGD 35,700 for foreigners.
- Contributions must be made by 31 December each year to qualify.
- Withdrawals after statutory retirement age are only 50% taxable.
❤️ Make Tax-Deductible Donations
- Donations to approved Institutions of a Public Character (IPCs) qualify for a 250% tax deduction.
- Must be made before year-end to be counted for the next Year of Assessment.
- IRAS auto-includes eligible donations—no separate claim needed.
👨👩👧 Claim Parent & Grandparent Reliefs
- Reliefs range from SGD 3,000 to SGD 9,000 depending on whether dependants live with you.
- Dependants’ annual income must not exceed SGD 4,000.
📚 Claim Course Fees Relief
- Up to SGD 5,500 for eligible work-related courses, seminars, and conferences.
- Helps you upgrade your skills while lowering your tax bill.
🏠 Optimise Rental Income Deductions
- Choose between the 15% deemed expense deduction or claiming actual rental expenses (e.g., maintenance, property tax, insurance).
- Ensure tenancy agreements are properly documented.
🏢 Deduct Legitimate Business & Employment Expenses
- Business owners can accelerate expenses before year-end.
- Employees can claim deductions for expenses incurred while earning income (e.g., subscriptions to professional bodies).
🛡️ Claim Life Insurance Relief (If Eligible)
- Available if your total CPF contribution is less than SGD 5,000 in the year.
- Relief is capped at the lower of your premium paid or SGD 5,000.
🌍 Keep Foreign-Sourced Income Exempt
Most foreign-sourced income is tax-exempt in Singapore if certain conditions are met. Maintain proper records to substantiate your claim in case of an IRAS query.
✅ Final Tips for Tax Efficiency
- Plan early—don’t wait until December to act.
- Maximise CPF and SRS contributions for double benefits.
- Keep receipts and proof of payments for all deductible expenses.
By using these legal tax-saving methods, you can significantly reduce your taxable income while staying fully compliant with Singapore tax laws.
