Income Tax - Seedly
Seedly logo
 

Income Tax

Questions answered

0 Followers

Recent Activity

Unanswered

Trending

Income Tax

Salary

Thinking of reducing my income tax for this year. What is a good option for a 26 yr old with a monthly income of 5.2k gross?
Hi there, As your income grows, tax payments will become higher with respect to your income earned. Starting early at age 26, is a good step to getting your finances in order. As you are currently receiving employed income, you will not qualify for deductions on your insurance policies. The most immediate steps you can take to reduce your taxable amount, and to maximize your monies, is to do voluntary CPF contributions to yourself. Namely, the retirement sum top up (RSTU), which gives you a guaranteed 4% p.a. in your SA. Alternatively, you can start considering making contributions to your SRS accounts. However the monies in this account would need to be invested out, as the crediting rate is 0.05% by default. There is a possibility of higher returns, depending on your choice of investment. In both cases, choosing an option can reduce your tax burden by 50%, so the choice at the end of the day would be which suits you better. Hope i was able to shed some insight, if you need more information do feel free to reach out!
0
👍
2

Interactive Brokers

Income Tax

Do I have to pay income tax on trading profits if I'm not a full time trader?
Hi there! You don’t have to pay tax on the profits you make from trading as capital gains are not taxable. https://www.iras.gov.sg/IRASHome/Individuals/Locals/Working-Out-Your-Taxes/What-is-Taxable-What-is-Not/Gains-from-Sale-of-Property--Shares-and-Financial-Instruments/ I hope this helps you!
0
👍
2

Supplementary Retirement Scheme (SRS)

Income Tax

Is the tax relief from SRS based on the contribution that FY, or the amount sitting in the SRS account?
It's based on contributions for the year. And yes you can contribute and immediately invest your SRS monies however you see fit and using it doesn't lose you your tax relief.
2
👍
2

Career

Freelancers

Income Tax

Passive Income

Being in a salaried job while working a side hustle (small business/freelancing/passive income), is it legally possible? At what point do you have to (1) Report Income (2) Register your small biz?
I dont think legally your "main" employer can do anything as long as your side hustle doesn't interfere with your main job, or conflicts with the company's interests. Obviously you have to make sure that during the official work hours, you are not working for your side hustle, that you do not steal any information etc etc. For all income derived in Singapore, you have to report them for tax purposes. Even gifts received by influencers are considered "income". I believe the government just wants to tax your additional income somehow. So if you're declaring personal income tax, you are generally fine (although in some instances, corporate tax is lower than personal income tax, and having a business entity shields you somewhat from liability). Register your small biz once you feel that you want to get serious about it.
0
👍
0

CPF

Income Tax

Retirement

If my taxable income is at 40k, and by topping up my SA account with $x (up to 7k), does it mean that my Returns is effectively 3.5% (from tax relief) + 4% (from SA)?
Hi anon, Yes, for that year. You'll get 3.5% savings on your tax plus 4% on your top up, so effectively 7.5%. This is followed by 4% on your SA in the years after that since tax relief is only granted for that year that you top up. It's good that you are looking towards beefing up your SA. People say that the FRS amount is hard to reach, but all your need is time and compounding. You don't have to get there in 5 years or 10 years, but give yourself 20 years and you'll likely get there.
0
👍
3

Income Tax

If i pay my income tax by 12months instalment using GIRO. Deductions will be on the 6th every month. What will happen if i accidentally pay by AXS on the 5th that month? Will IRAS still deduct on 6th?
ET

Eddie Tay

Level 3. Wonderkid

Updated on 22 Sep 2020

Hi Everyone, I contacted IRAS to check on this. See the attached info that I receive. You can pay by AXS before the 6th and GIRO will not deduct for that month, but you need to make sure your payment is made in advance and there is enough time for IRAS to receive the money so they do not activate the bank for the monthly deductions. Since the deduction is on the 6th, you might need to make payment more than a week in advance. And there is still a risk you will miss the timing and pay twice in a month. !
Answer preview
1
👍
2

Income Tax

Savings

CPF

Hi, does it mean I can file for income tax parent relief if my dad is above 55 and not working?
Sherry Choong

Sherry Choong

Level 3. Wonderkid

Answered on 17 Sep 2020

Hi there. Yes you can file for Parent Relief if you meet the following criteria: - Your father must be living in your household. If your father is living in a separate household, you must have spent at least $2000 supporting him - Dependent is age 55 and above - Dependendt did not have an annual income exceeding $4000 Details here: https://www.iras.gov.sg/IRASHome/Individuals/Locals/Working-Out-Your-Taxes/Deductions-for-Individuals/Parent-Relief-/-Handicapped-Parent-Relief/
0
👍
2

CPF

Income Tax

Can i get tax relief if i topup my parents' medisave account?
Yes you do get tax relief! up to $7k a year :) me and my brother pan to do it this year for our mother's account, it will be tax deductible.
0
👍
0

CPF

Income Tax

Hi, I am trying to reduce my income tax for next year. CPF VC MA relief? Any thoughts?
Hi Nick, According to IRAS, this is how you compute the amount of MA relief: Amount of Tax Relief VC-MA The amount of tax relief given to the lowest of the following: 1. Voluntary cash contribution directed specifically to Medisave Account or 2. Annual CPF contribution cap for the year, less Mandatory Contribution (MC) or 3. Prevailing Basic Healthcare Sum(BHS)^, less the balance in Medisave Account before the voluntary cash contribution. Let's do the maths here: If you have $6K/mth salary (ordinary wages) and $10K bonus (Additional wages) your CPF contributions would be $30.34K. Subtract this from the CPF annual limit gives you $7.4K. Your share of CPF contributions will be $16.4K. Add $7.4K to this and you have $23.8K of relief in total from CPF. Your calculations are correct.
2
👍
3

Income Tax

Fresh Graduates

Personal Finance 101

Life Hacks

Hi, noticed a handful of people are clueless about income tax. Thought that it'd be useful to share the IRAS Income Tax Calculator with everyone! Feel free to share any feedback/comments here!?
You can use the IRAS income tax calculator to calculate how much income tax you have to pay. ! Source: IRAS Income Tax Calculator (YA 2020) The excel sheet is quite simple to use. Simply input your: - Employment Income - Supplementary Income - Personal Reliefs And the tax payable will be calculated for you! There are links out for each point under income and tax reliefs as well, so you can better understand if you qualify for any! You can also check out the Deductions for Individuals (Reliefs, Expenses, Donations) for the full list of deductions as well. You'll need to file your income tax in March/April next year. Don’t worry you will get a notice of assessment via letter, form or SMS. Majority of taxpayers use GIRO for tax payment, deductions are made on the 6th of every month. You can also refer to this IRAS Guide for New Tax Payers in order to better understand how it works. Yes it is a lot of reading... 😥 Alternatively, you can also refer to this Personal Tax Filing FAQ YouTube playlist by IRAS for a quick crash course! Hope this helps! Adulting is tough but we can figure it out together! 💪
Answer preview
0
👍
1