Source: Freepik
A few important events mark the start of each year – New Year, Lunar New Year and Tax Season (unique to the Singapore calendar). After the celebrations and festive spending, families will do well with proper financial planning to ensure adequate cash flow to manage their tax payment for Tax Season 2024.
Let us take a look at how a Singaporean, Mr Tan, earning a median monthly salary of $5,197 (Source: Labour Force in Singapore, Ministry of Manpower) or annual income of $62,364 can reduce his tax bill in Year of Assessment 2024, legitimately. For a picture of a happy Singaporean family, add a home-maker wife and two young children under one roof.
Mr Tan’s tax bill for Year of Assessment 2024:
| Total Income | $62,364 |
| Less Personal Relief | |
| - Earned Income Relief - Spouse Relief - Child Relief | $ 1,000 $ 2,000 $ 8,000* |
| - CPF Relief | $12,473 - $23,473 |
| Chargeable Income | $38,891 |
| Tax first $30,000 | $200.00 |
| Balance of $8,891 at 3.5% | $311.19 |
| Tax payable before rebate | $511.19 |
| Personal Income Tax Rebate of 50% (capped at $200) | $200.00** |
| Total tax payable | $311.19 |
* $4,000 per child
** The Personal Income Tax Rebate of 50% is for YA2024 as announced in Budget 2024