I shall separate the tax relief into three categories, i.e. Normal Care Taking Expenses , Consumption Expenses and Retirement Schemes.
|Table 1: Normal Care Taking Expenses Tax Relief|
The Singapore government also encourage caring society by giving tax relief to employee who taking care of their elders and siblings, this in a way reduce the responsibility of the government and sharing this saving with the working tax payers...
But I feel the individual tax relief of SGD1,000 is too little for working tax payers...as you are taking care of so many people in order to get the tax relief but why not anything for yourself? (Especially new foreign worker like me where my parents and family are still in Malaysia, nothing to relief...) On the other hand, Malaysia is giving RM9,000 as the individual tax relief, mostly to help the low income "citizen", but ok also, as we enjoy it as well...
|Table 2: Consumption Expenses Tax Relief|
|Table 3: Retirement Scheme Tax Relief|
Please note foreign worker like me can signed on with the SRS (Supllementary Retirement Scheme) to enjoy certain tax relief as I still do not contribute to CPF, and the SRS tax relief is more SGD26,775.
(to be continued....)