Here’s what I do by every December to manage my taxes and work towards my retirement egg nest. You can definitely do this earlier. But, if you are a procrastinator like me, I recommend to get it done by the last working week of December to be safe!
#ThingsIwishedIhadknown as a Singaporean or Permanent Resident (PR):
- Contribute up to $15,300 to your Supplementary Retirement Scheme (SRS) account, eligible for tax relief.
- Contribute up to $8,000 to your your own Special Account (SA)/ Retirement Account (RA), eligible for tax relief
- Contribute up to $8,000 to your your parents/ parents-in-law / grandparents / grandparents-in-law and qualifying spouse and siblings, eligible for tax relief
I put them in ranking order for a reason: SRS can be withdrawn if the money is urgently required compared to CPF SA/ RA.
Contributions to SRS are eligible for tax relief. Investment returns are tax-free before withdrawal and only 50% of the withdrawals from SRS are taxable at retirement. Find out more on Tax on SRS withdrawals.
Small pointers to help anyone new to filing taxes!
- Our taxes are filed in March – April (e.g. 2027) for the Year of Assessment (YA) which ended January to December (e.g. 2026)
- All reliefs should be completed by 31st December (e.g. 2026)
- The overall personal income tax relief cap is $80,000 since YA 2018
- Planning ahead helps!
Leave a Reply