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.

Cooling measures for cars: Buying pre-owned.

There was a big commotion with regards to how cooling measures for cars would affect the pre-owned market not too long ago. In response, from 6 April 2013, the government lifted the more stringent rules for car loans for 60 days for the purchase of pre-owned cars. The concession will end on 5 June 2013.

The Monetary Authority of Singapore stated that:

"It said it would not be possible to relieve the industry from the impact of the financing restrictions on an on-going basis.

"It said the two-month relaxation of the rules for the pre-existing used car inventory will help the industry adjust to the new conditions."

Dealers said that a period of six months would have been better.

I suspect that the pre-owned market for cars will see harder times from 6 June 2013 once the concession ends.

Why am I blogging about this?

I have a friend who is thinking of buying a pre-owned car and since he does not need to take a loan to do so, I suggested that he should wait till sometime in mid June to start shopping. Prices could possibly soften as the pool of able buyers for pre-owned cars would probably shrink by then.

Related posts:
1. Cooling measures for cars.
2. Cooling measures for cars spurned.