Tax Savings in 2025: Singapore offers a variety of tax reliefs and rebates to help residents reduce their taxable income and maximize savings. Understanding these benefits can help individuals and families keep more of their hard-earned money. In this article, we’ll break down the top tax reliefs, rebates, and deductions available in 2025, ensuring that you make the most of your tax planning strategies.
Tax Savings in 2025
| Topic | Key Details |
|---|---|
| Tax Relief Cap | S$80,000 per year |
| CPF Cash Top-Up Relief | Up to S$16,000 |
| Supplementary Retirement Scheme (SRS) Relief | Up to S$15,300 (SG citizens & PRs) |
| Parenthood Tax Rebate (PTR) | Up to S$20,000 per child |
| Working Mother’s Child Relief (WMCR) | Up to 100% of mother’s earned income |
| Earned Income Relief | Up to S$8,000 based on age |
| Qualifying Child Relief (QCR) | S$4,000 per child |
| Handicapped Parent Relief (HPR) | S$14,000 for supporting a handicapped parent |
| More Info | IRAS Official Website |
Singapore offers numerous tax reliefs and rebates to help individuals and families reduce their taxable income and maximize savings. By planning ahead and making smart financial moves—like CPF top-ups, SRS contributions, and claiming family-based reliefs—you can optimize your tax benefits effectively.
Understanding Singapore’s Personal Tax System
Singapore follows a progressive tax system, where the more you earn, the higher your tax rate. However, numerous reliefs and rebates exist to help reduce your tax burden.
- Income Tax Rates: The rates range from 0% for incomes below S$20,000 to 24% for incomes above S$1 million.
- Eligibility: Tax reliefs apply to tax residents—those who live and work in Singapore for at least 183 days in a year.
- Filing Process: Taxes must be filed annually by April 15 via the IRAS e-Filing system.
Top Tax Reliefs and Rebates for 2025
1. CPF Cash Top-Up Relief
One of the easiest ways to lower your taxable income is by making voluntary CPF top-ups. This includes topping up your own account or that of family members.
- Personal CPF Top-Up: Up to S$8,000
- Family Member CPF Top-Up: Additional S$8,000
- Total Potential Relief: S$16,000 per year
- Eligibility: You must contribute to the Retirement Account (RA) or Special Account (SA).
- Best Practices: Plan contributions early to ensure they are counted in the assessment year.
2. Supplementary Retirement Scheme (SRS) Relief
The SRS is a voluntary savings scheme that allows individuals to contribute additional funds for retirement while enjoying tax relief.
- Singapore Citizens & PRs: Up to S$15,300 per year
- Foreigners: Up to S$35,700 per year
- Tax Benefit: Only 50% of SRS withdrawals are taxable after retirement
- Investment Potential: Funds in the SRS account can be invested in stocks, bonds, and other financial instruments.
3. Parenthood Tax Rebate (PTR)
Designed to support parents, the PTR provides substantial rebates for families.
- First Child: S$5,000
- Second Child: S$10,000
- Third & Subsequent Children: S$20,000
- Usage: Can be shared between both parents
- Tax Planning Tip: Parents should determine how to split the rebate effectively for maximum savings.
4. Working Mother’s Child Relief (WMCR)
Encouraging mothers to continue working, the WMCR is a percentage-based relief applied to a mother’s earned income.
- First Child: 15% of earned income
- Second Child: 20% of earned income
- Third & Subsequent Children: 25% per child
- New Fixed Rates for Children Born After Jan 2024:
- First Child: S$8,000
- Second Child: S$10,000
- Third & Subsequent Children: S$12,000
5. Earned Income Relief
Taxpayers earning income through employment or self-employment receive this automatic relief.
- Below 55 years: S$1,000
- 55 to 59 years: S$6,000
- 60 years & above: S$8,000
- Key Consideration: This relief applies automatically but varies based on age.
6. Parent & Handicapped Parent Relief
Those who financially support their parents may claim:
- Parent Relief: S$9,000 (if living with you), S$5,500 (if not living with you)
- Handicapped Parent Relief: S$14,000
- Eligibility: Dependent parent must be above 55 years old or disabled.
How to Maximize Your Tax Savings
To take full advantage of these tax benefits, follow these steps:
- Review your taxable income – Understand where you stand and what reliefs you qualify for.
- Contribute to CPF and SRS – These not only provide tax relief but also help in retirement planning.
- Maximize Parenthood Benefits – If you have children, claim PTR, WMCR, and QCR.
- Ensure timely claims – File for reliefs before the tax deadline to avoid missing out.
- Seek professional tax advice – A tax consultant can help you make the most of available reliefs.
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Frequently Asked Questions About Tax Savings in 2025
1. How do I claim tax reliefs in Singapore?
Most reliefs are automatically applied, but some (like CPF top-ups and parent relief) require manual submission through IRAS.
2. What is the deadline for filing tax returns?
The deadline for YA 2025 tax returns is April 15, 2025.
3. Can I claim multiple tax reliefs?
Yes! But the total claimable relief is capped at S$80,000 per year.
4. Is SRS a good investment for tax relief?
Yes! Not only does it reduce taxable income, but SRS contributions grow tax-free until withdrawal.
5. What happens if my total tax relief exceeds my taxable income?
You won’t receive refunds, but any unused rebate (e.g., PTR) can be carried forward to future years.
