Tax paid with Citibank Dividend Card.

It is a once a year affair. Got to pay Road Tax for my car:

I paid at an AXS machine this evening and was pleasantly surprised to find that I had a choice of paying with a DBS or a Citibank credit card too.

So, I paid with my Citibank Dividend Card and I guess tonight's dinner at the food court was free! That makes me happy!

I used to NETS it using my POSB ATM card. Things have changed for the better.

Ways to reduce income tax.

On 8 March 2013, I blogged about how we could pay less in income tax even as we increase our income. 

So, what can we do to achieve this?





1. Invest to receive non-taxable income.

2. Start a Supplementary Retirement Scheme (SRS) account and make annual contributions to reduce taxable earned income.

3. CPF-SA Top Ups will receive income tax relief for the first $7K contributed each year.

4. Voluntary contribution to our CPF-MA will receive income tax relief.

5. Donate to charitable organisations recognised by the government and enjoy 2.5x tax deduction, if we can afford to do so.





The rather generous personal income tax rebate from the government helped me to save 30% in tax payable. 

For seniors who are still working, the rebate is 50%.

So, how much is my income tax for the Year of Assessment 2013?

S$ 1,133.23.

This is probably the lowest I have ever paid in income tax in the last 10 years. 

This is even though my total income for 2012 exceeded S$200,000.

What I have done is humanly possible. 

Compared to many big success stories in Singapore, what I have achieved is not fantastic. 

Unless disadvantaged in some way, anyone who is determined enough can do it too. 

Remember if Yan can cook, so can you?

It is 100% possible to make more money and pay less income tax and there are readers who have been following my blog since its inception who can attest to this. 





If you have experienced this for yourself, please leave a comment and share with us your story.

Of course, there are many ways to pay less income tax and, mind you, I am referring only to the legal ones. 

Nothing illegal here in ASSI. 

Read the comments contributed by readers in my earlier blog post on the topic (hyperlink provided below) and we will get some ideas.

Believe or not to believe?

Related post:
Make more money, do good and pay less income tax.

Make more money, do good and pay less income tax.

I filed my income tax return for the Year of Assessment 2013 (YA 2013) online.

Although I received more income last year, I will be paying less income tax for YA 2013 compared to the year before. Incredulous? How could this be? Could it be true?

Regular readers would know that a large portion of my income is passive and non-taxable. So, to pay less income tax for YA 2013 compared to the year before, did my earned income from employment decline? Nope, it remained more or less the same as the year before although the probability that it could decline in future exists.

The lower than expected estimated income tax for YA 2013 is because of donations I made to 6 charitable organisations last year which enjoy 2.5x tax deduction and the 30% personal income tax rebate I am eligible for from the government.

Of course, I am pleased to be paying less tax but I am happier still that I am doing good with my donations to several recognised charities in Singapore.

If we can afford it, let us be charitable and donate to the less privileged. We will also pay less income tax in the process. Everybody wins. Sounds good, doesn't it?

If you are wondering about the personal income tax rebate, the following table is taken from IRAS:

Age as at 31 Dec 2012	Personal Income Tax Rebate for the Year of Assessment 2013
Below 60 years	30% of tax payable, subject to a cap of $1,500
60 years and above	50% of tax payable, subject to a cap of $1,500

What I have also been doing every year is to contribute to my SRS account to the maximum amount allowed. This has been a big help in reducing the amount of income tax payable. I would encourage anyone who is currently paying income tax and who does not have an SRS account to consider starting one.

So, is it possible to pay less income tax while making more money and doing good? Yes, of course!

If you tell your family and friends about this and they don't believe you, share or like this page and tell them that if AK71 can do it, so can you! Believe in yourself.

Related posts:
1. Counting our blessings.
2. SRS: A brief analysis.
3. 2012 full year passive income from S-REITs.