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? - Seedly

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Asked by Anonymous

Asked on 04 Nov 2018

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?

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Loh Tat Tian
Loh Tat Tian
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Top Contributor (Jan)

Level 6. Master
Answered on 21 Nov 2018

Tax Relief, just mean reduction of assessable income. It is not a tax rebate.

If you pay $100 to your SRS, you only reduce your tax by $2. This is because your income tax rate is only 2%.

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Yixiong Chang
Yixiong Chang
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Top Contributor (Dec)

Level 5. Genius
Answered on 04 Nov 2018

Did u mean u paid $100 for each tax year? That means your taxable income is $25,000. You will need to get $5k in tax relief to negate the $100. That means you have to topup $5000 into your srs/cpf special account.

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