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What are some of the ways/relief that is generally achievable to reduce the taxable amount?
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Zac
04 Apr 2021
Noob at Idiots Invest
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https://www.iras.gov.sg/irashome/Businesses/Emp...
Employers may also make voluntary CPF contributions to an employee's CPF account.
Voluntary CPF contributions made by the employer relating to employment in Singapore are taxable . The employer must prepare Form IR8S if there is excess CPF contributions made in the current year and give the form to the employee.
If the excess employer's contributions have been brought to tax and the employer has claimed or is claiming a refund, the employee should forward the completed Form IR8S to IRAS. IRAS will then review the employee's assessment accordingly.
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Nop
SRS contribution
CPF Cash top up relief
Donations...
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No, mandatory CPF employer contribution is not taxable. If they give you extra then yes it is.
Additional ways to enjoy income tax relief:
SRS contributions: But your SRS earns paltry interest so make sure you invest it.
CPF top-ups: you can top up to your own account, or your parents' accounts if they fall short of the BRS.
Parental support allowance: up to a quantum of $9000, but only one child can claim this. So if your older sibling has already claimed the full quota, then you can't.
Donations to charity: donations are 250% tax-deductible. I.e., I donate $1000, I get $2500 worth of tax relief.
CPF/SRS contributions are irreversible so think carefully before making top-ups.
Lastly, maximum income tax relief is capped at $80,000, so no point going beyond that amount as you will not be getting further benefit.