Tax Harvesting
With no capital gains tax in Singapore, tax savings come down to one thing: lowering your taxable income. By maximizing specific government schemes and investment vehicles, you can pay less to the taxman and keep more for future growth.
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Singapore enforces a personal income tax relief cap of $80,000 per Year of Assessment. To plan effectively, you should first calculate the 'automatic' reliefs you already receive—such as CPF contributions and Earned Income Relief—before committing to additional tax-saving moves like SRS or CPF top-ups.​
Supplementary Retirement Scheme
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Every dollar contributed to your SRS account reduces your taxable income by a dollar (dollar-for-dollar relief).
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Limit per year of $15,300 for Singaporeans/PRs and $35,700 for foreigners.
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You only pay tax on 50% of the amount when you withdraw it after the statutory retirement age (63).
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Funds can be invested in a variety of asset classes such as stocks, bonds or ETFs to beat the 0.05% interest rate for idle cash.
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By optimizing your withdrawal schedule against the prevailing tax-free brackets, it is possible to achieve a zero-tax liability on your distributions.
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CPF Cash Top-Ups
You can make voluntary CPF contributions and claim tax relief. From the Year of Assessment 2025, CPF Cash Top-Up Relief allows for:
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Up to $8,000 in tax relief for self top-ups
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Up to an additional $8,000 for top-ups made to parents, parents-in-law, grandparents, grandparents-in-law, spouses, and siblings (if they meet income criteria)
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This means a total CPF relief of up to $16,000 per year. The contribution cap remains subject to CPF Annual Limit rules.
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Charitable Donations
By donating to an approved institution of a Public Character(IPC), you are eligible to get a 250% tax deduction on the donation amount.
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For every $1,000 donated, your taxable income drops by $2,500
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If your donation deduction exceeds your income for the year, you can carry the balance forward for up to 5 years