💰 Tax Savings: Maximising Your Personal Income Tax Relief in Singapore (2025 Edition) #am05sg

yes yes, its that time of the year again...

what season you ask?

📌 TAX Season?!

Tax season is here, and if you’re not using all available tax reliefs, you’re leaving money on the table!

Singapore offers various deductions that can legally reduce your taxable income—you just need to know how to use them.

📌 Take for example John earns $80,000 annually and didn't optimise his tax reliefs.

Had he strategically plan better, he could have saved over $3,000 in taxes!

Source: giphy

🛠 5 Key Tax Reliefs to Claim in 2025:

1️⃣ CPF Top-Ups (Up to $8,000 for Self & $8,000 for Parents) 📈

• Cash top-ups to your CPF Special Account (SA) or Retirement Account (RA) reduce taxable income!
• Bonus: Your parents will appreciate the extra retirement savings. 😉

2️⃣ Course Fees Relief (Up to $10,000) 📚

• Took a course to upgrade your skills? Claim back your expenses!
• Pro tip: Even online courses in finance or coding may qualify.

3️⃣ Parent/Grandparent Relief (Up to $9,000 per dependent) 👵

If you support your elderly parents or grandparents, you may be eligible for this relief!

4️⃣ NSman Relief (Up to $5,000) 🪖

If you're an NSman, you automatically get tax relief based on your service status.

5️⃣ Life Insurance Relief (Up to $5,000) 🏥

If your CPF contributions are below $5,000, you can claim relief on life insurance premiums.

💡 Tax Relief Hack: Stack CPF Top-Ups with SRS for Maximum Tax Savings!

Most people only use CPF top-ups, but here’s a pro hack:

💡 Combine CPF SA top-ups with SRS (Supplementary Retirement Scheme) contributions to double-dip on tax reliefs!

• CPF Top-Up: Reduce taxable income by up to $8,000 for self + $8,000 for parents
• SRS Contribution: Reduce taxable income by up to $15,300 for Singaporeans
• Total Potential Tax Savings: $31,300 deduction!

📌 _Now take for example, _Amy earns $100,000 a year.

Without tax reliefs, her tax bill is $5,650.

• By maxing out CPF & SRS, she lowers taxable income to $68,700.
• Now, her tax is only $2,378—saving her over $3,000 in taxes!

Source: giphy

📖 Case Study: How Ben Used CPF Top-Ups to Save More

Ben, a 35-year-old working professional, used to ignore CPF top-ups.

After reading about the tax benefits, he:

✅ Topped up $8,000 into his CPF SA in December to get tax relief

✅ Added $8,000 to his parents' CPF for more deductions

✅ Put $10,000 into SRS to further lower his taxable income

💡 Result? Ben saved over $3,000 in taxes while boosting his retirement savings!

Source: giphy

💡Act Before It’s Too Late!

Tax reliefs can easily save you thousands if you plan ahead. Before filing your taxes,

check which reliefs apply to you and make the necessary top-ups before 31 Dec! 🚀

See other topics by Asian Amos:

👉Gen Z's Thrifty Lifestyle

👉Where, How and What to invest after CNY Hong Bao Money

👉How to use the ESBI Quadrant to turn Active Income to Passive Stream