![]() However, if you’re looking to reduce your taxable income for YA2022, it’s too late. For every $1 that you put in these accounts, you get $1 deducted from your chargeable income. The easiest and best known way to reduce your taxes is to top up all the retirement accounts. Saving for retirement: CPF Top Ups + Supplementary Retirement Scheme Now, there are more schemes here than I care to count, so I’m going to try and simplify things by grouping them into 6 broad strategies:ġ. Bear in mind that some of these are automatically calculated when you file your income tax. $15,300 (SC / PR) or $35,700 (foreigners)ġ5% of rental income + home loan interestĪlways keep in mind that income tax relief ceiling of $80,000, which is the maximum relief possible to obtain.īefore you go on that crazy CPF topping up spree, you should check what reliefs you are eligible for using the IRAS Personal Reliefs Eligibility Tool. So if you’re there, you might want to find out what tax reliefs you can get to lower your chargeable income.ġ0 ways to reduce your personal income tax in Singapore Tax reliefs Here are the current income tax rates on your chargeable income. What are the Singapore income tax rates in 2022? The resulting (smaller) number is your chargeable income, which is what IRAS uses to calculate how much tax you need to pay next year. You may find that you’re eligible for several tax reliefs, which will be subtracted from your taxable income. 1 January to 31 December 2022), you should start planning for tax relief. If you have some idea of how much your taxable income is for YA2023 (Year of Assessment 2023, i.e. If you have any other sources of income that you’re unsure about, you can refer to the IRAS page on what is and isn’t taxable in Singapore. ![]() There is also no capital gains tax to pay, even if you made a million bucks from Bitcoin / flipping properties / other investments. In Singapore, most other forms of income are not taxable.įor example, if you get dividends from your shares, they’re not taxable no matter how juicy they are. If you’re a landlord, rental income is also counted as taxable. This applies whether employed or freelance, including bonuses, but excluding compulsory CPF contributions. You probably know that personal income tax applies to your salary. However, here are 10 tips for reducing the amount of income tax you have to cough up next year in YA2023: How do you work out your taxable income? ![]() The income you earn from to will go to YA2022, which you’ll soon need to pay between 1 March to 15 April 2022. While there are quite a few months to go before the tax season YA2022 (which is in March and April), now is actually the best time to start calculating how much you’re likely to pay next year in 2023 - before you blow all your savings on your Chinese New Year mahjong and ban luck. It’s not even Chinese New Year and here I am, writing an article about income tax.
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