How to Reduce Your Income Tax in Singapore Legally (2021)

Posted by John Rikvin on May 20th, 2021


Who doesn’t dream of reducing their personal income tax in Singapore? Singapore has a variety of different tax relief initiatives that you can leverage to save some money. We have put together a list of 7 different ways you can reduce your income tax.

How reducing your Singapore income tax works

Singapore’s income tax system is progressive, which means that the more you earn, the more you will be taxed. The idea is to find things you can either write-off or claim tax relief for. While there are various ways to do that, there is also a personal income tax relief cap. This limit is currently set at S,000 and is the total amount of your tax relief for any given year of assessment. 

Make a charitable donation

We love this point, as it really incentivises people to do good. In order to get tax relief, you just have to make a donation to any charity that is registered as an IPC (Institute of a Public Character) in Singapore. You can get up to 250% in tax deductions based on the donated amount.

Top up your CPF

This is another great way to help yourself – give yourself money and pay less taxes. Sounds great? Here’s how it goes. Simply top up your CPF Special Account. Once done, it will be automatically deducted and you don’t have to worry about it. However, there is a limit. This means that only your chargeable income of up to S,000 will be considered. But it’s not the end just yet. You can also top up your parents’ CPF accounts as well and receive another tax relief for that.

Read more how you'd be able to reduce your income tax in Singapore at this blog.

John Rikvin

About the Author

John Rikvin
Joined: August 9th, 2019
Articles Posted: 23

Store Bitcoin and a Earn Passive Income
Miny CC allows you to store your Bitcoin, Litecoin and Ethereum on their platform and pays you 10%-19% in monthly returns based on your stake.
Passive Income - Effortlessly | Honeygain
Honeygain is the first-ever app that allows users to make money online by sharing their internet connection.
Coin Farm - online farm with money withdrawal
Coin Farm - online investment game with real money withdrawal. Buy birds, sell eggs for real money. Your passive income is here.
Claim 1 FREE Stock! No Purchase Necessary!
You have a 100% chance of receiving one free stock! Click to claim and have a chance to get one share of Facebook, Visa, Microsoft and others for free!
FREE App - Earn up to 25/gal cash back on gas!
Download this FREE app and earn cash-back when you buy gas, groceries and food! 100% FREE to join and FREE to earn cash back on your everyday purchases!
Quality Office Furniture USA Shipped Direct - Madison Liquidators
Nationwide vendor of quality office furnishings including Desks, Office Chairs, Conference Tables, Cubicles and more!