how much tax deduction in singapore

Singaporean Income Tax Allowances and Reliefs

This reference details the various allowances and reliefs available to reduce taxable income in Singapore. Tax liabilities are calculated based on assessable income, which is gross income less allowable deductions.

Personal Reliefs

  • Basic Personal Relief: A fixed amount deducted from assessable income. The specific amount is subject to annual adjustment by the Inland Revenue Authority of Singapore (IRAS).
  • Additional Reliefs: Various reliefs are available depending on individual circumstances, including age, spouse's income, and parenthood. These include reliefs for parents, elderly parents, and handicapped dependants. Specific eligibility criteria and amounts are detailed on the IRAS website.
  • Reliefs for parents: Taxpayers may claim relief for the maintenance of their parents based on certain conditions.
  • Spouse relief: This relief may be claimed if the spouse has an income below a specified threshold.
  • Child relief: Taxpayers with children who meet specific criteria may claim relief.
  • Home Protection Scheme (HPS) relief: Reliefs related to home loans under the HPS. Detailed eligibility criteria and computation methods are publicly available through official channels.

Tax Deductible Expenses

  • Donations: Donations to approved institutions may be deductible. Limitations and conditions apply.
  • Insurance Premiums: Certain insurance premiums may be deductible, subject to specific conditions and limitations set by IRAS.
  • CPF Contributions: Contributions to the Central Provident Fund (CPF) are deductible. Specific guidelines are available through official CPF and IRAS sources.
  • Business Expenses: For self-employed individuals and business owners, allowable deductions are extensive and depend on the nature of the business. Detailed guidelines are available through official IRAS resources for various business structures (e.g., sole proprietorship, partnership, company).

Important Considerations

Tax laws and regulations are subject to change. It is crucial to consult the official website of the Inland Revenue Authority of Singapore (IRAS) for the most up-to-date and accurate information. Seeking professional tax advice is recommended for complex situations.