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Anonymous

17 Jun 2021

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I’ll be bringing in an annual income of arnd 60+k this year and realised I’ll have to pay quite abit of income tax. Would like to know how I can utilise CPF & SRS effectively to minimise tax payable?

I’m 23 this year, will be hitting a net worth of about 100k (40+k CPF, 40+k savings & investments) by this year end. Did 2 jobs this year and that’s why I’ll be hitting such a high amount of income, and have no idea how to utilise reliefs. Would love to hear opinions on how I can do it and if anyone is in this income bracket could share how you’re doing it too! Currently mainly passively investing mainly through roboadvisors and ETFs!

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Wrong Sean

17 Jun 2021

https://www.iras.gov.sg/irashome/Individuals/Lo...

The tax payable on first $40,000 is $550.
The next $20,000 is $1400.

You should use the calculator to estimate your income tax payable.

You have to deduct the mandatory CPF contributions first. Then check what reliefs you can get. The final tax payable shouldn’t be that high after all the eligible relief deductions.

For tax relief from CPF and SRS, you need to use cash to top up to these accounts. RSTU to SA/RA, VC to MA, contribution to SRS.

https://www.iras.gov.sg/irashome/Individuals/Lo...

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I started work in January this year. When will I need to pay tax? If I would like to use the SRS scheme to reduce my taxable income, when would I need to do this by?

Would like to check if I top up $7K to my CPF SA account, does it mean that I could only top up to $8.3K in SRS so that I max out $15.3K maximum contribution per SRS limit for tax deduction?

I pay about 100 in income taxes each year. Is it worth it for me to open an SRS account? Can I instead of paying taxes use the tax to pay my SRS account?

If I contributed to my CPF or SRS account today, it would apply to my 2021 income tax right? It's too late to influence my 2020 income tax?

I am paying 20k annually for an endowment plans. I would like to cut as the premium is too high. Is it advisable to terminate one of the policies that I already paid first year of 3k with payment year of 15 years?

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