Tax season for Year of Assessment (YA) 2022 may not be until March next year, but now is in fact the time to start preparing for it. The income you earn from 1 Jan to 31 Dec 2022 will be considered for YA 2023, where you’ll need to pay your taxes.
Not only will your salary be taxed regardless of whether you’re traditionally employed or working freelance, so will your bonuses and — if you are a landlord — rental income. Compulsory CPF contributions, dividends from shares and capital gains, however, are exempt from taxation.
Here are 5 ways to reduce your personal income tax:
- Save up for retirement
- Move in with your parents
- Upgrade your skills
- Make a donation
- Have babies
