Discover ways you can reduce your tax bill as a self-employed person. If you play it smart you may be able to utilise the options available and save more of your money.
Based on the costs you incur while running your business, you can claim a tax deduction. However, you will be able to claim expenses only on allowable business expenses. Certain expenses won’t qualify for tax deduction based on the Income Tax Act. These expenses are generally not wholly or exclusively incurred while generating income.
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7 Ways to Reduce Income Tax in Singapore
As a landlord, if you incurred expenses on property you own, you could be eligible for tax deduction. Your expenses should be incurred purely for the generation of income from the property. You also should have had tenants living at your premises while the expense occurred.
You could claim tax deductions of up to 3 times the value of your donation up to 2021. This deduction applies for donations of cash, computers, public art, buildings and land, shares, or artefacts.
If you’re self-employed and also are an employee, you could reduce your tax by claiming relief on your CPF contributions. You will be eligible if you voluntarily contribute to either Employee CPF contributions or Medisave contributions. You will only be able to claim CPF relief if your net trade income is assessable.