Save 11.5% immediately if are earning >$96,600 per year! Save 7% if you are earning >$51,000

Have you estimated your earned income yet? Have you add in:
- 13month bonus
- Staff discount
- Allowances
Yes, above are some of the income that is earned and taxable.

If you have estimated your earned income to be >$51,000* you can consider putting it to SRS. Cause every dollar set aside will save you 7%.
E.g. If you set aside $1,000 to your SRS, you will save $70 of tax immediately. And if you set aside the SRS maximum of $15,300, you will save $1,071 of tax.

*For simplification, we use $51,000 minus CPF contribution of $10,000 and earned income rebate of $1,000 gives you a chargeable income of $40,000.
Based on IRAS, anything above $40,000 the tax rate is 7% up to $40,000.

If your estimated earning is > $96,600** then every dollar you put aside will save you a whopping 11.5%!
E.g. If you set aside $1,000 to your SRS, you will save $115 of tax.
If you set aside the SRS Maximum amount, you will save $1,756.

This is not every dollar save, every dollar earned.
This is every dollar save, a dollar and twelve cents earned!





Left Image: Get tax relief while building your nest egg
by Lorna Tan on Nov 1, 2015


**Similarly, for simplification, we use $96,600 minus CPF contribution of $15,600 ($6k x 13mth x 20%) and earned income rebate of $1,000 gives you a chargeable income of $80,000.
Based on IRAS, anything above $80,000 the tax rate is 11.5% up to $40,000.

Below is the table for tax savings based on your monthly salary with 10% of your annual income contributed to SRS:

So start saving now! If you have concern on SRS matters such as withdrawal, post your comments below or check with your financial advisor.