There are several tax-saving strategies that individuals in Singapore can use to minimize their tax liability, including the following:
- Contribute to a tax-deductible retirement savings account, such as a Central Provident Fund (CPF) account, to reduce your taxable income.
- Take advantage of tax deductions and reliefs, such as the Personal Relief and the Course Fee Relief, to reduce your taxable income.
- Consider making charitable donations to eligible institutions, as charitable donations made to approved institutions are tax-deductible.
- If you are a self-employed individual or a business owner, consider incorporating your business as a company, as companies are taxed at a lower rate than individuals.
- Keep track of your expenses and save receipts, as some expenses, such as professional development expenses and travel expenses, may be tax-deductible.
It’s important to note that the tax laws in Singapore can change from year to year, so it’s always a good idea to consult with a qualified tax professional to discuss the best tax-saving strategies for your specific situation.