As the calendar year draws to a close, taxpayers in Singapore have a golden window to legally reduce their taxable income and maximise reliefs. This guide offers actionable, keyword-rich tax planning strategies tailored to Singapore’s tax system—covering SRS contributions, donation deductions, course fee relief, and more—so you can enter the new year with a lower tax bill.
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📅 Why Year-End Tax Planning Matters in Singapore
Singapore taxes income on a preceding year basis, meaning your Year of Assessment (YA) taxes income earned in the prior calendar year. That’s why tax moves made before 31 December can significantly affect your next year’s tax bill.
🏦 Maximise Your Supplementary Retirement Scheme (SRS) Contributions
- Contribution deadline: 31 December each year.
- Tax relief limit: SGD 15,300 (Singapore Citizens/PRs), SGD 35,700 (foreigners).
- Benefit: Reduces taxable income now; withdrawals after statutory retirement age are only 50% taxable.
Example: A non-resident making a SGD 30,000 contribution can save up to SGD 7,200 in tax (assuming 24% marginal rate).
❤️ Make Tax-Deductible Donations to IPCs
- Donations to approved Institutions of a Public Character (IPCs) enjoy a 250% tax deduction.
- Must be made by 31 December to qualify for the upcoming YA.
- IRAS auto-includes eligible donations from IPC records—no need to claim manually.
Tip: Time large donations in higher-income years to maximise deduction value.
📚 Claim Course Fees Relief for Professional Development
- Up to SGD 5,500 per YA for eligible courses, seminars, or conferences.
- Course must relate to your current profession, trade, or employment.
- Fees paid by your employer or reimbursed are not claimable.
💰 Top Up Your CPF Special Account or Retirement Account
- Top-ups under the Retirement Sum Topping-Up (RSTU) Scheme qualify for tax relief up to SGD 8,000 (self) and SGD 8,000 (family).
- CPF contributions give safe, risk-free returns and reduce taxable income.
Tip: Combine CPF top-ups with SRS contributions for double relief impact.
👨👩👧 Maximise Parent and Grandparent Reliefs
- Reliefs range from SGD 3,000 to SGD 9,000 depending on whether dependants live with you.
- Ensure dependants meet IRAS income threshold (≤ SGD 4,000 annual income).
🏠 Optimise Rental Property Deductions
- Choose between 15% deemed expense or claiming actual expenses (maintenance, property tax, insurance, interest).
- Ensure tenancy agreements are signed before 31 December to start deduction eligibility.
🏢 For Business Owners: Accelerate Expenses & Defer Income
- Bring forward deductible expenses like repairs, advertising, and staff training into the current year.
- Delay invoicing for non-urgent income to the next year if possible.
Note: Must be commercially justified and align with accounting standards.
🌍 Keep Foreign-Sourced Income Exempt
Foreign income is usually not taxable in Singapore unless received via a Singapore partnership. However, ensure funds are remitted cleanly and maintain proof of source to defend exemption.
⚠️ Common Year-End Tax Mistakes
- Waiting until January to make SRS or donation contributions—too late for that YA.
- Not keeping receipts or proof for deductible expenses.
- Overlooking CPF top-up reliefs for family members.
✅ Final Takeaways for Singapore Taxpayers
- Act before 31 December to lock in reliefs.
- Prioritise SRS, CPF top-ups, and IPC donations for biggest impact.
- Track and record all deductible expenses now—don’t scramble at filing time.
By proactively planning, you can legally lower your Singapore tax bill and keep more of your hard-earned income.
