Maximize Your 2025 Tax Savings: Tax season is around the corner, and maximizing your 2025 tax savings in Singapore can significantly reduce your financial burden. By leveraging various tax reliefs and rebates, individuals can lower their taxable income, ensuring they pay only what is necessary. The Inland Revenue Authority of Singapore (IRAS) offers multiple reliefs that cater to working individuals, families, and retirees, helping them maximize savings effectively.
In this article, we break down the best tax reliefs, rebates, eligibility criteria, and application process to ensure you make the most of your tax benefits in 2025.
Maximize Your 2025 Tax Savings
| Topic | Details |
|---|---|
| Personal Income Tax Relief Cap | SGD 80,000 per Year of Assessment (YA) |
| Popular Tax Reliefs | Earned Income Relief, CPF Relief, Course Fees Relief, NSman Relief |
| Family-Related Reliefs | Working Mother’s Child Relief (WMCR), Qualifying Child Relief (QCR), Grandparent Caregiver Relief |
| Supplementary Retirement Savings (SRS) Relief | Max contribution: SGD 15,300 (Residents) / SGD 35,700 (Foreigners) |
| CPF Cash Top-Up Relief | Up to SGD 14,000 (Self & Family Members) |
| Official Website for Tax Updates | www.iras.gov.sg |
Maximizing your 2025 tax savings is easier when you take full advantage of Singapore’s best tax reliefs and rebates. Whether through CPF contributions, family reliefs, or education tax breaks, these measures can help lower your tax burden and improve financial security.
Understanding Singapore’s Tax Reliefs & Rebates
Singapore’s tax system rewards individuals who contribute to their retirement, invest in education, support their families, or engage in national service. Tax reliefs lower taxable income, while tax rebates directly reduce tax payable. Below, we explore the most beneficial tax reliefs available in 2025.
Earned Income Relief (EIR)
This relief is for individuals who earn income through employment, business, or freelancing. The amount varies based on age:
- Below 55 years: SGD 1,000
- 55 – 59 years: SGD 6,000
- 60 years and above: SGD 8,000
CPF Relief & CPF Cash Top-Up Relief
CPF Contributions & Relief
Employees and self-employed individuals who make contributions to the Central Provident Fund (CPF) are eligible for relief. Contributions made under the Mandatory CPF Scheme are automatically accounted for.
CPF Cash Top-Up Relief
- You can claim up to SGD 14,000 for voluntary CPF top-ups:
- SGD 7,000 for yourself
- SGD 7,000 for family members (e.g., parents, spouse, siblings)
- Only applies to top-ups under the Retirement Sum Topping-Up (RSTU) Scheme.
Supplementary Retirement Scheme (SRS) Relief
The SRS allows voluntary contributions that reduce taxable income while growing retirement savings.
- Maximum Contribution Limits:
- SGD 15,300 for Singaporeans/Permanent Residents
- SGD 35,700 for Foreigners
- Contributions are tax-deductible, and withdrawals after the retirement age are taxed at 50% of the withdrawal amount.
Course Fees Relief
Individuals who enroll in approved courses, seminars, or training programs to enhance their skills can claim up to SGD 5,500 per year. The course must be relevant to your current or future employment.
National Service (NSman) Relief
This relief applies to Singaporean males who have completed National Service:
- NSman (Self) Relief:
- Active NSmen: SGD 3,000
- Inactive NSmen: SGD 1,500
- NSman Wife Relief: SGD 750
- NSman Parent Relief: SGD 750
Family-Related Tax Reliefs
Working Mother’s Child Relief (WMCR)
Encourages working mothers to stay in the workforce:
- First child: SGD 8,000
- Second child: SGD 10,000
- Third & subsequent children: SGD 12,000 each
- Total cap per child: SGD 50,000 (WMCR + QCR)
Qualifying Child Relief (QCR) & Handicapped Child Relief (HCR)
- QCR: SGD 4,000 per child
- HCR: SGD 7,500 per handicapped child
Grandparent Caregiver Relief (GCR)
- SGD 3,000 relief if a grandparent provides care for children aged 12 years or below.
Parent & Handicapped Parent Relief
- Parent Relief: SGD 9,000 (co-residing) / SGD 5,500 (non-co-residing)
- Handicapped Parent Relief: SGD 14,000 (co-residing) / SGD 10,000 (non-co-residing).
Maximize Your 2025 Tax Savings Claim Your Tax Reliefs & Rebates
- File Your Taxes Online:
- Login to myTax Portal using your SingPass.
- Under “Tax Reliefs,” review auto-included reliefs and manually enter additional claims.
- Ensure CPF & SRS Contributions Are Recorded: CPF and SRS reliefs are automatically processed if contributions were made through approved financial institutions.
- Submit Supporting Documents If Required: Some reliefs (e.g., Course Fees, Grandparent Caregiver Relief) may require additional proof.
- Verify Tax Assessment:
- Check your Notice of Assessment (NOA) after submission.
- If discrepancies arise, submit an objection via IRAS e-Service.
FAQs On Maximize Your 2025 Tax Savings
1. What is the maximum personal tax relief cap?
The total personal tax relief is capped at SGD 80,000 per Year of Assessment (YA).
2. Can I claim multiple tax reliefs?
Yes, you can claim multiple reliefs, but the total cannot exceed SGD 80,000.
3. Do I need to apply for CPF Relief?
No, CPF contributions are automatically recorded and deducted from taxable income.
4. How do I check my tax relief claims?
Login to myTax Portal and review tax relief details under your tax filing.
5. What happens if I make an error in my tax relief claim?
You can amend mistakes by submitting an objection through IRAS within 30 days of receiving your NOA.
