The Ultimate Guide to Tax Reliefs in Singapore for 2024

Looking to reduce your income tax bill in Singapore? You’re not alone. Every year, Singaporeans lose out on thousands of dollars in tax reliefs because they don’t know about them or don’t claim them correctly.

In this ultimate guide 2024 edition, we’ll walk you through the different types of tax reliefs available in Singapore, and how to claim them. By following our tips, you can legally reduce your income tax bill and keep more money in your pocket.

1. CPF Cash Top-Up Relief

• Top up your CPF account or your loved ones’ accounts to claim tax reliefs of up to $8,000 per person.
• But don’t go overboard, as the tax relief is only up to the Full Retirement Sum (FRS).
• Check with IRAS if you’re approaching the FRS before you make any top-ups.

2. Supplementary Retirement Scheme (SRS) Contribution Relief

• Open an SRS account and contribute cash to enjoy tax reliefs of up to $15,300 per year.
• SRS deposits earn very low interest, so you may want to consider investing your SRS funds instead.
• If you’re looking for a fuss-free way to invest your SRS funds, ETFs are a good option.

3. Course Fees Relief

• If you’ve attended any approved courses that are relevant to your employment or vocation, you can claim tax reliefs of up to $5,500 per year.
• But be warned: you can’t claim for courses that are for leisure purposes or general skills.
• You also can’t claim for courses that were paid for using SkillsFuture credits or your employer’s money.

4. Charitable Donations Relief

• When you donate to any approved Institution of a Public Character (IPC), you can enjoy a 250% tax deduction.
• This means that for every $1 you donate, you can claim a tax deduction of $2.50.
• The tax deduction is applied automatically to your tax bill, so you don’t have to do anything extra.

5. Tax reliefs for parents

• If you’re a parent, there are a number of tax reliefs available to you, including:
  • Working Mother’s Child Relief (WMCR)
  • Qualifying Child Relief (QCR) / Handicapped Child Relief (HCR)
  • NSman Parent Relief
  • Foreign Domestic Worker Levy (FDWL) Relief
  • Grandparent Caregiver Relief
• The WMCR is the most powerful tax relief for parents, as it can be claimed for up to 35% of your income for each child.
• The QCR/HCR can be claimed for up to $4,000 per child or $7,500 per child with a disability.
• The NSman Parent Relief is a tax relief of $750 for each parent of an NSman.
• The FDWL Relief is a tax relief of two times the total FDWL paid for one domestic helper.
• The Grandparent Caregiver Relief is a tax relief of $3,000 for a retired or low-income caregiver who takes care of your children.

Here are some tips for maximizing your tax reliefs:

• Claim the WMCR first, as it is the most powerful scheme.
• Split the QCR between you and your spouse, if needed.
• Claim the GCR even if your child has more than one caregiver.
• Claim the FDWL Relief if you have a foreign domestic helper.
• Work out with your siblings who gets to claim the Parent Relief.

By following these tips, you can legally reduce your income tax in Singapore and keep more money in your pocket.