Seven ways to manage your taxes as 2014 winds down

OLIVER Wendell Holmes said: "I like to pay taxes. With them, I buy civilisation." Most of us recognise that taxes pay for public services, but would be less willing to scrounge up for them than Justice Holmes. But how do we reduce our tax obligations within reason and mitigate adverse consequences? We count seven ways below as the year winds down and as you prepare to file your tax return for the Year of Assessment (YA) 2015 by April 15, 2015.

The Supplementary Retirement Scheme (SRS) is a voluntary scheme that incentivises individuals to save for retirement by way of tax-deductible contributions. Singapore citizens and permanent residents can contribute annually up to S$12,750, while foreign individuals can put in S$29,750.

You can withdraw funds from your SRS account any time, but only in cash. But bear in mind that the time of withdrawal determines the taxable amount of the sum withdrawn. Withdrawing prematurely from SRS would attract taxes on the total withdrawal sum and a 5 per cent penalty.