Last Updated on 19, March 2014
Singapore’s tax law is quite straightforward. However, high income earner may not realize that there are attractive tax saving tools to reduce their tax liabilities. These tax saving tools are not automatic but has to be planned ahead. Some of these tools are Supplementary Retirement Scheme (SRS), CPF Minmum Sum Top-up, CPF Voluntary Contribution scheme and donation to Institutions of Public Character. Using CPF rules to save on taxes can be a complicated affair because CPF rules change almost on a yearly basis.
Those who invest in foreign investments may like to know that they may be taxed by foreign government on their dividends. For example if the dividend yield is 3% and the tax rate is 30%, there is almost a tax expense of 1% per annum. Careful planning can be done to avoid this by investing in other jurisdiction for which there is no dividend tax.
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