Ways to get a rebate on your income tax in Singapore

As a citizen of a country, it becomes your responsibility to pay taxes. Every nation has its own policy when it comes to deducting taxes from an individual's income. It doesn't matter whether you are working in a company or have your own business, you have to give some portion of your income to the government. However, there are some legal ways in which you can significantly reduce the tax that is being paid by you.

In this article, we are going to focus on Singapore that is known to have the lowest income tax rate in the World. However, if you don't manage your taxes carefully these can have a huge impact on your annual income.

Relief on Income from Employment

As a citizen of Singapore, if you pay tax on your income that you get from a company, a business or even pension then you are eligible for income tax relief. The range of the tax relief is between $1000 to $8000. For all the persons aged below 55, they will get a tax relief of $1000. Those who are aged between 55 and 59, the amount will go to $6000. And finally, for the above 60 ones, the rebate amount is of $8000.

Apart from this, if a person has any kind of physical or mental disability he is eligible for a minimum rebate of $4000 that can go up to $12000.

Make Donations to Authorized Institutions

The Government of Singapore gives a tax relief of 250% to all those donors who donate their money to the approved institutions. An individual, company, a trust, group of people qualify for this. So, by making donating a habit, a person will be able to claim a significant tax rebate. A reduction in tax will further lead to higher incomes for a person.

This is a good way to persuade people to donate as doing a noble cause it will be an individual who will be benefited in the end.

Claim Rebate on Rental of Property

The income that you earn by renting your property is taxable. It can be a small room or a number of different properties that are rented. However, you are eligible to get a rebate on the expenses that were incurred while renting the property. Some of the expenses that can be claimed include property tax, interest paid on the housing loan, repairing cost, utility and Internet charges, the commission of the agent. This can be pretty beneficial for a person who owns multiple properties. Taking a claim would be much better than paying a very high-income tax.

Relief on Course Fee

The purpose of giving a tax relief on courses is to encourage the people to upgrade their skills that will increase their qualifications for the different jobs. All those individuals who are or were earlier having a full-time job are targeted by this scheme. There are a number of courses that an individual can opt for. For example taking up a Taxation Course In Singapore will be a very beneficial as it would enable you to be aware of the different ways in you can get a tax rebate. A maximum value of $5500/annum can be claimed.

In some cases, where the income of a person is less than $22000, then the claim will be a deferred one that is acceptable inside two years with respect to the date of joining the course.

Parents or Dependent Relief

A person who is acting as a support for his parents or grandparents is also entitled to claim a tax relief. However, there are some specific conditions that need to be met in order to be eligible for this. The dependent or parents who rely on their son's income for leading their life are covered under this. They must no not an income that exceeds $4000/ annum and all the tax exempted incomes from bank interests, pension schemes and dividends.

In The End

Above are some of the legal ways that will enable you to get relief from your taxes in Singapore. All these will gradually increase your annual income. Some of the tax rebate policies keep on changing every year or after a few years. So you need to make sure that you execute those that are specific to a particular duration. You are also required to show the proof of the costs that were incurred by you.

I am Morris Edwards working as a trainer at A1 Myob Course Singapore. which offers Skills Future Approved training in a href ="https://www.a1myobcourse.sg/"Microsoft Excel course, Accounting, Corporate Tax and MYOB courses at a low price.