Tax savings for Singaporean income earner by contributing to SRS (Supplementary Retirement Scheme)

One key principle of tax planning is that you, the income earner,  must always save on tax expenses by paying at the lowest tax bracket. You don't need to be a Tax Accountant to know that SRS works for you to managed your Tax planning effectively. For every one dollar you save into your SRS account brings down dollar for dollar your taxable income. If you are a high income tax bracket payer, it could even bring you down to a lower tax bracket.

For 2017, the median salary of a Singaporean is S$4,232. (Source http://stats.mom.gov.sg/Pages/Income-Summary-Table.aspx) That is $50,784 annually. The tax payer is getting some of his taxable income to be charged at the 7% tax bracket group. By contributing the full SRS allowed of $15,300. The tax payer actually bring him down to the 3.5% tax bracket group.
It is a tax savings of $912.94.

That makes an almost thousand dollars of tax savings for Singaporean income earner with median income by contributing to Supplementary Retirement Scheme.

source : IRAS