Just to sum up what you can do to reduce your taxes.

1. SRS – You have to be quick, because many banks stop accepting applications before the year is over. That means you can’t wait until 31st December to put your money into fixed deposit through SRS, or do other investments. You may need to print out a form from your company to certify you are working, because SRS is meant for those who are employed. You may invest up to about $11000, but remember you can’t take the money out without penalty before current retirement age. Hence, putting just a few thousand dollars would suffice to your favourite cause today.

2. Charity Donations – Charity donations will get you double tax relief, so if you are feeling generous, don’t just stuff the money into those boxes you see along the road. Make a proper donation to the charities or organisations of your choice. Get into the festive mood and do something for others.

3. For single ladies who are preparing to get married, quickly register your marriage if your partner is an NSman. However, I am not sure whether there is still time to do so before the year is over. That’s because you get tax relief simply being the wife of NSmen. Not sure whether it is because you have to help them wash their uniforms while they are doing duty for the country.

4. Get the help of tax-savvy people who knows how to decide whether certain expenses can be counted. This will help to reduce your taxes.

5. Attend courses that are relevant to your work, or to something you plan to switch to within two years. You can make claims for these. If I am not wrong, as long as you pay for the course now, even if you attend it next year, you still can claim it for this year.

Sarah Tan – Singapore Profit

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I’m quite curious about pledging money to presidential election. Do they get any tax relief or is it more to do with them making a political statement on which candidate they support?

Some people may think that the money could go to better causes, but sometimes, what we do with our money is really controlled in our hands. There are many causes like what I’ve mentioned in another post about the benefits of donating to charities. It is important for us to have a strong belief in what causes we stand for. Through a simple action of giving money, it speaks volume on what kind of person we are, what values we stand for, and what causes we believe in.

In many books about wealth and also in various religions, a central idea of giving money to the charities is always there. It is useless to hoard all the money we have in the world and not give a single cent to other causes. So in my opinion, there could be various agendas when people fork out money, but the end does justify the means. After all, to be in a position when we can afford to give is better than to be in a position to beg for money.

In America’s case, voting for each party candidate does speak volumes about your own belief system. It also tells us what they hope to see in candidates by supporting those that represent them the best. By the way, Jodie Foster votes for Hillary Rodham Clinton while George Clooney votes for Obama, both from the Democratic Party.

Sarah Tan- SingaporeProfit.com

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Sarah Tan – SingaporeProfit.com
 

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How to know whether your favourite charity is an approved Institution of a Public Character (IPC) is to check out the list. Do note that the status is subject to renewal. Last year, I had a bit of problem claiming income tax deduction from one charity for terminally ill children because it could not get its IPC status renewed in time. The status allows the public to know whether the charity is handling the funds appropriately.  

As someone who loves the arts, I’ve discovered a great way to watch plays for free and still get double deduction. Some of you may feel that theatre companies can’t be considered charities, but the sad fact is that it is very difficult for theatre companies to survive without funding. If the arts are not allowed to flourish, then Singaporeans are the ones who lose out ultimately. Cities that are attracting lots of tourists and immigrants are the ones that are culturally rich. For Singapore to survive, arts is an important aspect we cannot afford to neglect.

Hence, for a small amount of $150, you get to pay less income on your chargeable income (less $300 due to double tax deduction), and still get the following benefits. You can get 2 free tickets, and some of the tickets aren’t cheap. For someone who watches plays quite often, especially those by Wild Rice, I will get to save quite a lot of money.

• Complimentary Tickets
• The Best Available Seats
• Priority Booking
• 15% Discount on Ticket Purchases
• Invitations to Exclusive Events
• Special ‘Meet the Artist’ Sessions
• Acknowledgement in Programmes
• Double Tax Deduction
Incidentally, if you like to give back to your alma mater, there are also double tax deduction. For example, the Wee Kim Wee Legacy fund at NTU provides this tax benefit. The best part is for some scholarships, the government matches your donation with a dollar for every dollar you donate. This increases the amount that is donated!

I believe that when you help the needy and others, the returns come back to us even greater. Instead of just donating a miserable 10-cents and get a flag in return on a Saturday, donate even more. Besides, if you use your credit card to donate, you get to claim points as well. At the very least, even without all the monetary benefits, there is the satisfaction of our money making a small contribution to someone who needs it more than we do.
 

Sarah Tan – SingaporeProfit.com

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