Taking stock of finances before 2025 ends

THE year drawing to a close means that we are left with a few weeks to maximise tax savings – if one has not done so – by reducing our chargeable personal income. Before the taxman comes knocking in early 2026, bear in mind that there is an overall annual personal income tax relief cap of S$80,000.

1. Supplementary Retirement Scheme (SRS)

Every dollar you contribute to SRS will reduce your chargeable income by a dollar. All SRS contributions must be made by Dec 31 of the year or as required by your SRS operator, to be eligible for SRS tax relief in the following year of assessment. The yearly contribution cap is S$15,300 for Singaporeans and permanent residents, and S$35,700 for foreigners.

In your peak earning years, use SRS to defer taxes that would be paid in higher-income tax brackets. This way, you can pay taxes in lower tax brackets during your retirement years when you draw a lower or no income.