Year end is an apt time to look into own portfolio, do a stock take and rebalancing, and recalibrate your goals. It is also the time to look into efficient tax planning as part of rebalancing.
SRS is one of tax efficient saving method for high income earner, who not yet met the capped tax relief of $80,000. Unfortunately, for working mothers who have met the capped tax relief, SRS contribution would not benefit much to your tax saving.
Max SRS contribution is $15,300 for SG and SPR, and $35,700 for foreigners. You will receive dollar-to-dollar tax relief. Max capped relief for annual income tax is $80,000.
Monies in SRS can be invested for long term capital gain. You may withdraw your SRS during statutory retirement age, and 50% of your income withdrawal is tax-free.
Find out the optimum number for your SRS accumulation growth, and the methods available for you to achieve them.
With the right planning, you can utilize your SRS contribution for tax savings in two aspects:
