Are you sick and tired finding ways to Save Tax in Singapore?
Here is the solution for you!
Nothing is ever more disappointing than receiving a pay slip with heavy tax payments. Are you a businessperson or a civil servant in Singapore? There is a way that you can pay less taxes without overstepping the requirements of the authorities.
With the expensive standard of life in this country, learning how to save tax in Singapore can ensure that you have enough money for your family’s upkeep for the rest of the year.
You do not have to evade paying taxes as this will cause you problems when the long hand of the law catches up with you. The Inland Revenue Authority of Singapore will take action on people that do not pay their taxes. It is better to be on the safe side of the law. Just get and contact tax experts and specialists to help you in your tax planning matters so that you are able to save some tax.
Apply these strategies and you may be able to save taxes
This voluntary program was established by the government of Singapore to enable individuals to save for their sunset years. It is the most effective strategy on how to save tax in Singapore. As a permanent resident in the country, you are allowed to contribute up to SGD $12,750 annually while for those foreigners who hold work visas, their maximum cap is SGD $29,750. SRS allows you to attract great tax benefits such as reliefs. It is possible to claim a relief of the same amount as your contribution to the scheme. At retirement only 50% of the savings will be taxed. For starters, you only need to open a SRS account at a local bank. Nevertheless, be sure to withdraw at the time of maturation as any delay will attract a 5% penalty. As opposed to SRS, your contributions in the CPF attract an interest rate of 5%. This is another way that you can cut on your tax payments legally. However, the funds saved through the system cannot be used for investments or housing. If you are in Singapore, you can start by getting to the internet and access CPF E-Payment, after which you can make your contributions. This is another approach on how to save tax in Singapore. If you top up your own account, you are entitled to a tax relief amounting to SGD $7,000. Where you reimburse accounts belonging to any of your family members, you are bound to enjoy a tax cut of SGD $7,000. Moreover, when you make cash top ups to a special account, you are permitted to use the funds for investing in various projects. However, the account must be loaded with more than SGD $40,000. The beauty of this is that you will enjoy a 4% interest rate for every dollar that is in the special account.
The way forward – Tax Planning in Singapore
Tax planning is not only for the rich but also for those in the lower and middle part of the social stairwell. It is essential for all who have taxable incomes. The economy is already bad as it is and it might get worse if you have to pay large sums of money to the taxman. The above three ways on how to save tax in Singapore are some recommendations on the possibility to save your personal income taxes yet still be in compliant. Remember, it is an offence to cheat on taxes.
If you are looking for individual or company tax planning services in Singapore to save your taxes, then take a look at what website J Accounting Services has got to offer you.
