It’s important to pay taxes on time and accurately but simultaneously it is equally important to have the benefits of all the tax savings and deductions so that you can have low tax liabilities.
Do you know that there are various tax deductions available in Singapore that every taxpayer should know about? In this blog post, we’ve shared 10 schemes/ways under which you can claim & save money on your taxes.
- CPF Contributions
Any Singapore citizen or Permanent resident of Singapore must contribute to the Central Provident Fund. All CPF contributions are tax-deductible. Every year, people can claim a tax deduction for their mandatory CPF contributions. Talk to your accountant now!
- Supplementary Retirement Scheme
If you are paying for SRS (Supplementary Retirement Scheme), you are eligible to claim a tax deduction for the amount contributed. The Supplementary Retirement Scheme is a voluntary scheme in Singapore that you can pay & save for your retirement. This deduction results in lowering your taxable income and saving you taxes.
- Medical Expenses
Medical expenses in Singapore can be quite costly. That’s true! However, these medical expenses can yield tax benefits for you. All medical expenses are eligible for tax deductions and is applicable to the entire family including spouse and children.
An accountant can guide you with the exact amount and the process.
- Parent Relief
If you are supporting & paying for your parents who are older than 55 years and have an income of less than $4000 per annum, you are eligible for a tax deduction.
- Course Fees Relief
In Singapore, you can also claim a tax deduction for the course fees paid that you are paying for pursuing further education. The amount of tax deduction may vary and applies to courses that are relevant to your current job or industry.
- Donations to Approved Institutions
If you donate to approved charitable institutions in Singapore, you can claim a tax deduction for the amount donated.
- Rental Expenses
If you own a property and are renting it out, you can claim a tax deduction for misc rental expenses such as property tax, repairs, and maintenance costs. These expenses can help reduce your taxable rental income.
- Business Expenses
You can also claim a tax deduction for your business expenses such as office rent, equipment, travel expenses, etc. So if you run a business or if you are self-employed, get in touch with your tax expert to know how he can help you.
- Employment Expenses
If you incur employment-related expenses such as professional development courses or work-related travel, you can claim a tax deduction for these expenses.
- Interest on Home Loan
The interest paid on a home loan is another claimable tax deduction that you can avail of. If you have bought a home with a home loan and you have also paid interest against it, you are eligible to claim a tax deduction for the interest amounts paid. Consult an accountant in Singapore to get more insight on this.
Seeing the above discussions, it is concluded that there can be various ways to save your taxes and even many options to help you maximize your tax benefits provided you know the tips and tricks to apply in your case. A tax expert in Singapore can help you to be aware of them.
If you need help with tax planning or accounting services in Singapore, get in touch with PL Biz Consulting, Singapore to know how you can minimize your tax liability.