Apart from certain types of income sources, income earned in Singapore generally is taxable. Income from employment, business, property, investment, and annuity are some of the types of income sources you may have received. Before you learn how you can reduce your personal income tax, it is very important as an individual to understand, accurately declare and know the tax percentage of your taxable income. 

WHAT IS SINGAPORE RESIDENT INCOME TAX RATES YA2020?

Income tax rate table by IRAS

If your spouse and you belong to income earner of at least $80,000 per annual, then congratulations. This means you are earning above the national average household income. In year 2020, the average household income in Singapore apparently is $9,189. On the other hand, this also means your spouse and you will need to incur 11.5% tax rate for the amount you received above $80,000. Fortunately, the government provides different tax relief schemes that you could tap onto.

HOW CAN YOU REDUCE YOUR PERSONAL INCOME TAX?

Summary

Apart from the above, there are definitely many more tax reliefs designed by the government to cater to a different group of individuals. These tax relief schemes are designed for different needs. For example, contribution to CPF Special Account helps you with your retirement and Medisave allows you to offset your medical insurance and bills. With the right knowledge, you can definitely benefit more while reducing your taxable income. Do email us at support@forbis.com.sg if you have more questions or go to our Forbis Accounting website and we will be glad to share more with you.