Saving Tips - Tax

As you know the personal income tax of Singapore is rather low as compared to other countries. The first $20,000 chargeable income is tax free.

Chargeable Income Rate (%)
First $20,000 0
Next $10,000 3.5
Next $10,000 5.5
Next $40,000 8.5

But although the personal income tax is low, we have a lot of other tax to pay, for example GST, COE/ERP/Road Tax (if you own a car), etc…

So you can see that in order to lower the tax that you are paying, one of the ways is to reduce spending.

Take GST for example, if you are spending S$1000 per month, which means that you will be tax $70/- per month and $840/- per year. So from this you can see if you can reduce spending, you can also reduce the tax being paid every year.