Advertisement
Anonymous
Need advice on personal income tax reliefs. Confused with some details?
Annual income is at $45,000.
Eligible for NS men relief of $3000.
To clarify, taxable income after NS men relief is $42,000, which means total tax is $550 (from first $40,000) + $140 (from next $2,000) = $690 ?
If I top up SA or SRS with $2,000, this reduces taxable income to $40,000? And final tax is only $550?
I used the tax relief excel sheet and was confused by these. Does this mean compulsory CPF top up by me/employer adds to tax relief (earned income relief)?
https://imgur.com/a/WA7qi0b
4
Discussion (4)
What are your thoughts?
Learn how to style your text
Reply
Save
View 2 replies
No. If annual income is before deducting your own contribution to CPF.
Reply
Save
Write your thoughts
Related Articles
Related Posts
Related Posts
Advertisement
The cpf relief is not too difficult to work around - simply take the sum of your take home pay, and take home bonus. That way, you didn't account for any cpf related portions of your salary, and is just cleaner to work with, and easiest for most folks.
Assuming you did that to come up with the 45k, then your assessment would be right, after accounting for nsmen relief, and doing 2k in either cpf or srs would reduce your income tax to 550 (in 3.5% bracket).