4 Things From Singapore Budget 2022 That Will Affect You and Me

4 Things From Singapore Budget 2022 That Will Affect You and Me

On Feb 18, 2022, Finance Minister Lawrence Wong delivered the Singapore Budget 2022 in Parliament. The topics were broad ranging as it addresses the economy, helping businesses and green initiatives. The focus which I saw was mainly into healthcare, retirement and funding them.

In this article, I will talk about 4 main things from the Singapore Budget 2022 that will affect ordinary people like you and me. In addition, I will talk about the possible impact in a limited context.

4 Things From Singapore Budget 2022 That Will Affect You and Me
4 Things From Singapore Budget 2022 That Will Affect You and Me

#1: GST for You and Me

Singapore will raise Good and Service Tax (GST) from 7% to 9% in 2 stages in 2023 and 2024.

*Groan*

This might be dreadful news for everyone. GST is basically a tax on all goods and service in Singapore. Think of your coffee at Breadtalk, the iPhone you buy from Singtel or the massage at the parlor. We might not “see” GST very often as most shops would have already incorporated GST into their final prices. When GST increase, this will inevitably be passed to consumers like us. It is more important than ever to plan more for our retirement.

Positively thinking, the GST in 2022 is still 7%. If you have any bigger expenditure (Read more: How To Save On Big Ticket Purchases) that you require, you can consider doing so in 2022. These could be things like renovation, buying a laptop etc.

On a side note, this might boost the Singapore economy in 2022.

#2: Vouchers for You and Me

The Assurance Package first announced in 2020 by then Finance Minister Heng Swee Kiat has been topped up to be $6.6B by current Finance Minister Lawrence Wong. The main intention is to help support lower and middle income household in the increase in GST (maintain standard of living) even after the package ends.

Singapore Budget 2022 Assurance Package Vouchers
Singapore Budget 2022 Assurance Package Vouchers

The Straits Times actually did a beautiful summary on the vouchers that could be received. For a more detailed look at how much specially you will be getting, the Ministry of Finance page is the place to go.

I can safely say that the minimum that a Singaporean age 21 and above will get at least $700 from 2023 to 2027.

#3: CPF Retirement for You and Me

CPF Retirement Sums Raised

The first impact on CPF retirement is that our retirement sums will be raised by 3.5% per year for the next 5 cohorts that will be turning 2023 to 2027. There have been no mention if this will be reduced after that. It would be good to note that it was previously increasing at 3% per year.

Singapore Budget 2022 CPF Retirement
Singapore Budget 2022 CPF Retirement

This means that more have to be put inside of CPF so that you will be able to have a higher monthly payout at 65. However, this will also mean that you will likely draw out less at age 55. (Read More: 3 Key Changes To CPF Policies From 2022).

It is also worth noting that 8 out of 10 active CPF members aged 55 in 2027 will be expected to hit their BRS securing a basic level of retirement in any case.

CPF Contribution Rates Raised

The second impact on CPF will be of contribution rates for employers and employees will continue to be increased. The first increase has started from 1 Jan 2022. The next increase will be in 2023. This will also mean that more will go into CPF.

It is worth noting that if a CPF member have already hit the FRS, you will be able to withdraw the excess out as cash. Therefore, increase in contribution rate (by the employer) is generally seen as a good sign.

Singapore Budget 2022 CPF Contribution
Singapore Budget 2022 CPF Contribution

#4: Taxes for You and Me

If you are affected by some of these tax, congratulations! You might be the top 1% income earners in Singapore. In the budget 2022, there will be 3 main taxes namely, income tax, property tax and luxury car taxes.

Income Tax

This change will come in for year of assessment 2024. This means that it will be for income earned between 1 Jan 2023 to 31 Dec 2023. There will be 2 additional upper bands.

For chargeable income from $500K to $1M, it will be taxed at 23%.

For chargeable income from $1M and above, it will be taxed at 24%.

Singapore Budget 2022 Effective Income Taxes
Singapore Budget 2022 Effective Income Taxes

In the grand scheme of things, our effective income taxes are still reasonable as compared to many other countries. I believe this will affect the top 1% of us. (Read More: Income Tax Deductible 2021)

Property Taxes

To understand property taxes, there are 2 concepts that you need to know. One is Annual Value (AV) and the other is whether the owner is staying in the property. As the latter is quite clear, I will explain AV.

AV: Estimated gross annual rent of the property if it were to be rented out.

This number is decided by IRAS and there is nothing much you can really do about it. You can find the AV of your property on the IRAS portal. Looking at the photo below, you can have a rough sense by looking at the AV compared with the type of property.

Singapore Budget 2022 Property Taxes
Singapore Budget 2022 Property Taxes

Property taxes will be raised in 2 phrases namely in 2023 and 2024.

Singapore Budget 2022 Property Tax Non Owner Occupied Rates
Singapore Budget 2022 Property Tax Non Owner Occupied Rates
Singapore Budget 2022 Property Tax Owner Occupied Rates
Singapore Budget 2022 Property Tax Owner Occupied Rates

I believe impact will be felt for Non Owner occupied of AV > $45,000 with tax rates increasing from the current 14% to 28% in 2024. These would most likely be an investment property that are collecting rent.

For Owner occupied of AV > $55,000, the tax rates will increase from the current 4% to 10% in 2024. According to Lawrence Wong, this will affect 7% of owner-occupied residential properties. I believe this will be a combination of landed property owners (5% according to Department of Statistics in 2021) and some condominiums owners in central areas (2% of residential properties owners by subtraction). It will not affect most of us.

This is be seen as a form of wealth tax.

Luxury Car Taxes

An additional registration fee (ARF) tier has been created for cars, taxis and goods-cum-passenger vehicles with open market values (OMV) exceeding $80,000.

This will only affect Porsche Cayenne, Lamborghini Urus and Bentley Continental GT, and it will also affect several other makes such as Ferrari, McLaren, Aston Martin, Rolls-Royce and Mercedes-Maybach as well as top-end models in a number of other brands.

I believe this will not impact most people on the ground.

The top 6 luxury car brands in Singapore sold 216 cars in 2019. If demand remains the same, only a extremely small proportion of people will be affected by this. This is definitely a wealth tax.

Singapore Budget 2022 Car Taxes Bentley Continental GT
Singapore Budget 2022 Car Taxes Bentley Continental GT: Seen any of these around?

Conclusion

The budget comprises more than just the above 4. The 4 points above just show how the Singapore Budget 2022 will directly impact you and me.

I wish you the best in your financial journey. Hope to hear from some of you.

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

SRS Last Chance Save 1 year with $1

SRS Last Chance: Save 1 year with $1

SRS Last Chance Save 1 year with $1
SRS Last Chance Save 1 year with $1

SRS is a voluntary scheme to help individuals save for retirement in additional to the Central Provident Fund (CPF) saving.

The SRS offers tax benefits and you can find a quick summary of SRS here. This information is crucial to you especially if you are above 40. I will be conducting a SRS webinar in the next few weeks. Join my Telegram Group where I share 1 financial tip a day where I will be posting more details.

Why is this a last chance?

SRS allows you to make penalty free withdrawals from your SRS on or after the statutory retirement age (currently at 62) that was prevailing at the time of your first SRS contribution. 

In the National Day Rally in 2019, it is already made know that the statutory retirement age will increase to 63 (in 2022) and 65 (by 2030).

This means that if you don’t make your first SRS contribution before 2022, your penalty free withdrawal year will increase by 1 year to age 63. This is your last chance in doing so.

SRS Last Chance Retirement Age Increase National Day Rally 2019
SRS Last Chance Retirement Age Increase National Day Rally 2019

How much do I need to contribute?

All it takes is $1. You didn’t hear me wrong. You don’t need to invest in anything yet. The account opening only require $1 (and around 1 minute). The purpose of it is to “lock in” your statutory retirement age to be 62. You can find out more in one of my most read article last year called the $1 SRS strategy.

You can then consider to invest it or think about investing using your SRS in future.

Final Thoughts

Personally, I think it is a no-brainer to open the account. The “opportunity cost” is just $1. That being said, the choice is still yours at the end of the day.

For those of you who have opened your accounts. What are you investing in currently?

Let me know in the comments below.

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

Top 5 CPF Decisions To Be A CPF Millionaire

Top 5 CPF Decisions To Be A CPF Millionaire

Top 5 CPF Decisions To Be A CPF Millionaire
Top 5 CPF Decisions To Be A CPF Millionaire

CPF remains one of the main cornerstone of wealth management in Singapore. There are tons of information regarding the CPF on the web and I’m happy to see that CPF is having a purposeful outreach to the retirees and even the younger crowd. I do notice a better acceptance of the CPF during my 9 years in financial services and I do hope this trend continues.

Previously, I have spoken about 5 Things You Need To Know About Your CPF. This stems from 5 mistakes people make using their CPF that I have written in the last year. One of my friend then asked me why not write about the best advice that I will give with regards to CPF.

I have reservations about using the word “advice” because this assumes that I understand the situations, the profile, the life stage and risk tolerance, etc about that individual. Hence, this article is not about best advice but perhaps best decisions you can make if it fits your situation.

If you wish to find out more, I’m organising a CPF webinar on 29th April 2021. Limited seats only. Click here to join us.

 

#1: Transfer money from OA to SA

This is a pretty easy one. Currently, the floor rate of CPF-OA is 2.5% and the floor rate of CPF-SA is 4%. You would want to put more money into an account with higher interest with all things kept constant.

Top 5 CPF Decisions To Be A CPF Millionaire Compounding Effect
Top 5 CPF Decisions To Be A CPF Millionaire Compounding Effect

For the same $20,000, you would have $68K in your CPF-OA and $142K in your CPF-SA after 50 years. This is a difference of $73K. However, I do acknowledge that some might need to use the monies in the OA for your housing loan or downpayment. If you do not have “extra” monies in your CPF-OA, you can consider to transfer it to your SA.

Please note that this process is irreversible.

 

#2: CPF-SA Shielding

At the age of 54, you might want to consider CPF-SA shielding. In a nutshell, it means keeping your monies in your CPF-SA account to get a higher interest. This is because at age of 55, the formation of your RA (retirement account) starts from your CPF-SA and than your CPF-OA.

Top 5 CPF Decisions To Be A CPF Millionaire CPF SA No Shielding
Top 5 CPF Decisions To Be A CPF Millionaire CPF SA No Shielding

This is an example of no shielding. All your CPF-SA ($150K) will be transferred in the creation of you CPF-RA account leaving $0 in your CPF-SA after age of 55.

Top 5 CPF Decisions To Be A CPF Millionaire CPF SA Shielding
Top 5 CPF Decisions To Be A CPF Millionaire CPF SA Shielding

With CPF-SA shielding, you temporarily transfer out you CPF-SA into a “safe” investment. $40,000 is left in the CPF-SA due to the rules of the CPF. At age 55, during the creation of the CPF-RA account, only $40K is transferred from CPF-SA and the rest will be transferred from CPF-OA. You then transfer the monies back to your CPF-SA which is giving 4% interest.

Remember that the crust of this is to keep your monies in the higher interest account.

 

#3: Upgrade your Medishield Life to an Integrated Shield Plan

I cannot emphasize more on the importance of medical insurance. With the new adoption of the co-payment structure of our medical plan, you can also interpret it as medical costs are getting more and more expensive.

It is important to get a medical plan that suits your needs especially during retirement age where the chances of hospitalisation are a lot higher. Having a strong medical plan is a risk management to help you remain a CPF millionaire.

 

#4: Choosing The Appropriate CPF-Life Option

Big shoutout to families here. Do you know that you can increase the amount of money you leave behind to your loved ones if you select the appropriate CPF-Life option?

Top 5 CPF Decisions To Be A CPF Millionaire CPF Life Bequest
Top 5 CPF Decisions To Be A CPF Millionaire CPF Life Bequest

If you don’t select the CPF-Life option, it will be a standard plan. Let’s look at the difference between the standard plan vs the basic plan.

Difference Between Standard Plan and Basic Plan Monthly: $124 (taking the lower estimate)

Difference Between Standard Plan and Basic Plan from Age 65 to 83: $26,784

The reason I’m using age 83 is because that is the accepted mortality age in Singapore at the moment. This is means that we are expected to live until age 83 (life is short isn’t it). For an extra $124 a month (the cost of one meal a month), your family might lose out potentially $84,368 (because $111,152 – $26,784) worth of bequest. This “extra” bequest may help your loved ones become a CPF Millionaire.

I hope this word gets out to more families out there.

 

#5: Using cash to pay for your mortgage

CPF was set up years ago as a retirement vehicle. In 1968, the government finally allowed the use of CPF for the downpayment and to service the monthly mortgage loan instalment. This means that less will go into your intended retirement (not taking accrued interest into account).

Using more cash to pay for your mortgage will leave more money that will be compounded for your retirement so that you can become a CPF Millionaire.

 

Final Thoughts By Wealthdojo

The decisions above serves as a guide and shouldn’t be taken as advice. The main emphasize is to consult an expert to see if any of the decisions above serves you. Most of the decisions circle around keeping the monies in the higher interest account (which is CPF-SA) at the moment to let it compound for the future.

Wishing you all the best to be a CPF Millionaire.

If you would like to benefit from CPF more, I have put together a free webinar to share my knowledge on it. Limited seats only. Join us with the link here.

 

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

My SRS Portfolio March 2021

My SRS Portfolio and Thoughts [March 2021]

My SRS Portfolio March 2021
My SRS Portfolio March 2021

After a series of SRS related articles in 2020, there are some readers from investingnote and my telegram channel that asked me to be transparent with my SRS investments. After some discussion with some of my readers, I will be doing regular updates on my thought process of investing using my SRS and the reasons why I invest in some of these funds or products.

The Standard Disclaimer: This is not and should not be taken as a buy/sell recommendation.

Before looking into using SRS to invest, these are some links you should read first before continuing.

Start Here: The $1 SRS Strategy

Basic Knowledge: 5 things you need to know about SRS when you are 40 and older

Your SRS Overseas Retirement Guide: 3 things you need to know about SRS if you plan to leave Singapore

For 40s and above: 10 SRS Investments to Consider Especially if you are 40 and older

Income Tax and SRS: How Much Is My Income Taxes [2021 Edition]

 

SRS Objective

To invest in sectors that are growing and balance it with reits exposure.

 

My Considerations

There are 3 instruments that I personally think is interesting and of investing value at this moment of time.

Lion-OCBC Securities Hang Seng TECH ETF (HST.SI)

This ETF is investing into the 30 largest TECH-themed companies listed in Hong Kong. It is diversified across 30 companies ranging from Alibaba to ZTO. While it is undeniable that there may be regulatory risk associated with this ETF, I believe that companies such as Tencent, Alibaba, JD, SMIC is going to propel China’s economy into the future. I’m not going in depth into the reason of investing in this article. Currently, I’m already vested into this ETF.

LGI HST ETF
LGI HST ETF

 

Manulife US Reits (SGX:BTOU)

Manulife US Reits is one that I have been eyeing for a look time. The reits is exposed to income-producing office real estate in key markets in the United States. I personally like the WALE by NLA and also occupancy rates of this reits.

Manulife US Reits Portfolio
Manulife US Reits Portfolio

Let me address one common question about COVID-19 affecting office real estates in USA. USA has been adopting working from home for a long time. Beyond the financials, it is important for the company to have a good working culture. The synergy fortunately is created from social interactions in office.

From the corporate presentation in March 2021, only 5% of companies mentioned that there will no longer be a need for an office. Around 70% of bosses expected employees to working from office at least 3 days a week. Similarly, around 70% of bosses expect that they would need more space due to rising headcount and also social distancing needs. Manulife reits rents to a well diversified tenant base ranging from Legal (21% of gross rental income), Finance and Insurance (18.1% of gross rental income), retail trade (13.8% of gross rental income) and so on. Personally, I’m comfortable with this even with the new norms that we might be experiencing. Currently, I’m vested into this reit.

Manulife US Reits Portfolio Work From Home
Manulife US Reits Portfolio Work From Home

 

Exposure to Institutional Investors (Ballie Gifford, Blackrock, Wellington)

Currently, I’m not invested into this yet because my SRS funds are insufficient to purchase into them yet. As I’m a representative from AIA Singapore, I would not be able to write the product. Feel free to reach out to me for more details regarding this.

The reason why I think it would make an great investment thesis is because of the expertise of the 3 companies. Wellington is famous for their exposure in the value investing companies. Ballie Gifford is well known for investing in growth companies (such as Tesla). Blackrock is famous for their fixed income. Depending on your intended risk profile, the 3 funds will be allocated accordingly.

I am planning to contribute to SRS in 2021 again for tax purposes. That will be the moment of time where I will be investing into this instrument.

 

Final Thoughts By Wealthdojo

I reckon my positions will not be changing much. The next change will probably be after the addition of new funds into my SRS to purchase the plan that give me exposure to the institutional investors. Wishing everyone the best in their investment journey.

Do reach out to me if you wish to explore your SRS options.

My SRS Portfolio
My SRS Portfolio

 

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

3 things you need to know about SRS if you plan to leave Singapore

3 things you need to know about SRS if you plan to leave Singapore

It is the Supplementary Retirement Scheme (SRS) contribution season. If you are 40 and above, do check out my previous post on the 5 things you need to know about SRS. Interestingly, someone emailed me on my 6 Level Wealth Karate System Page to ask about what will happen to their SRS account if they leave Singapore.

In this article, we will talk about 3 potential scenarios (i) if you are a foreigner and continue to stay in Singapore (you should!) (ii) if you are a foreigner but decide to leave Singapore (iii) if you are local and intend to retire in overseas (Thailand, Phuket, you name it).

3 things you need to know about SRS if you plan to leave Singapore
3 things you need to know about SRS if you plan to leave Singapore: Don’t leave =(

I’m a Singaporean and proud to be one. Singapore is a wonderful country. You should not leave =). Unfortunately, I do meet people who love Singapore but have no choice but to leave because they were asked to relocate to another country. Anyway, let’s set the context for the SRS. Most people will probably be concerned if it is worth it to contribute to their SRS when long term stay in Singapore is not confirm. We will touching on that.

I would also need to point out the withdrawal tax concession and the 5% early withdrawal penalty.

 

SRS Early Withdrawal Penalty (Local and Foreigner)

Withdrawal after retirement age (current age 62): You can start making penalty-free withdrawal from your SRS account. You will only be taxed 50% of the amount you withdraw for the calendar year.

Withdrawal before retirement age (current age 62): Although you can make withdrawal from your SRS account at any time that you want, you will be subjected to a penalty of 5% of the amount withdrawn. In addition, the full amount withdrawn will also be subject to income tax.

There are other special circumstances which we will not be going into detail (Death/Medical Grounds/Bankrupt)

 

SRS Additional Withdrawal Criteria (Foreigner)

As a foreigner, you can withdraw your SRS monies without the 5% penalty if you meet the following criteria:

(i) a foreigner for a continuous period of at least 10 years preceding the date of withdrawal.
(ii) one lump sum after maintaining your SRS account for at least 10 years from the date of your first contribution.

For such withdrawal, you will be taxed 50% of the withdrawal amount.

After understanding the above criteria, let’s consider a the few scenario that might happen to you.

 

Case #1: Foreigner and continue to stay in Singapore

James is a foreigner who is staying in Singapore for many years. When I first met James, he told me that he really love Singapore. He likes the sunny weather, he likes the hawker food (his favourite is chicken rice) and also a father of 2 beautiful young children.

He has an intention to stay in Singapore to raise his family.

James contributes to his SRS account every year. This is because as a foreigner, he does not have CPF contribution. By contributing to the SRS, he is able to reduce his taxable income, save on taxes and also save for retirement.

James is 45 this year and he is plan to contribute the full $35,700 into his SRS every year. He makes around $160,000 a year. Assuming no other personal tax deduction.

Without SRS: James pays $13,950 of taxes that year.

With SRS: James pays $8,595 of taxes that year. (His chargeable income is $160,000 – $35,700)

In total, he saves $5,355 worth of taxes that year. He also saves $35,7000 in his SRS which he can use to invest for his retirement.

In 10 years time, he save a total of $53,550 worth of taxes. At the same time, he would have accumulated nearly $481,462 if he decides to invest his monies in his SRS assuming it grows at 4%. He can decide if he wants to withdraw the lump sum.

If he does so, he have to pay 50% taxes on withdrawal amount. Let’s assume he does not have any income that year. He will be taxed on $241,000 (50% of $481,462). He pays a tax of $28,945. He saves about $24,605 ($53,550-$28,945) if he contributes to SRS. In this case, he benefits from this.

However, James may not want to do this at all. At age 55, he is still young and most likely have a good income, saving or investment to depend on if he does proper wealth management. James is a happy man.

3 things you need to know about SRS if you plan to leave Singapore happy family
3 things you need to know about SRS if you plan to leave Singapore happy family

 

Case #2: Foreigner and decides to leave Singapore

In an unfortunate case where you have to leave Singapore, there are some strategies that you might want to consider for the SRS. I met Lucy a few years back. Lucy has been in Singapore for 3 years now but have not contributed to her SRS. She’s working in an MNC in Singapore and earns around $160,000. She fears that the economic downturn will affect her job opportunities in Singapore and asked to be returned to her country. This has been escalated due to COVID-19. Similarly, if she contributes $35,700 to her SRS, these are her numbers.

Without SRS: Lucy pays $13,950 of taxes that year.

With SRS: Lucy pays $8,595 of taxes that year. (Her chargeable income is $160,000 – $35,700)

In total, she saves $5,355 worth of taxes that year. She also saves $35,7000 in her SRS which she can use to invest for her retirement.

What if Lucy were to leave Singapore? Her fears are valid. It would mean that $35,700 would be stuck in her SRS. What if she leaves Singapore AND really needs the money? In this unfortunate situation, she will have to pay a 5% penalty and also be taxed on 100% of the withdrawal amount. This can be avoided if Lucy plans using the 6 Level Wealth Karate System.

Ideally, she can wait for 10 years from her first contribution to avoid the penalty and be taxed on 50% of the lump sum.

3 things you need to know about SRS if you plan to leave Singapore Sad Woman
3 things you need to know about SRS if you plan to leave Singapore: I don’t want to go

 

Case #3: Local but wants to retire overseas

This has been a dream of many Singaporeans. Andrew has been working in Singapore all his life and contributes to his SRS account regularly. He has been telling his colleagues about his retirement which is happening in a few years time. He dreams that he will be able to retire in Thailand. He enjoys Thai food a lot and can’t wake to wake up on the beach of Phuket every day for the rest of his life.

3 things you need to know about SRS if you plan to leave Singapore Phuket
3 things you need to know about SRS if you plan to leave Singapore Phuket

We are in the midst of checking if SRS will be taxed differently due to the change of tax residency. We will update this article accordingly.

Update: SRS will be taxed according to tax residency and it depends on the following factors.

3 things you need to know about SRS if you plan to leave Singapore Tax Resident
3 things you need to know about SRS if you plan to leave Singapore Tax Resident

Final Thoughts

Please check in with your tax advisors for the above strategies. We also note that the rulings change from time to time so we want to be mindful about that.

Whether you are a local or a foreigner, it make sense to contribute to SRS (as discussed in the previous article). I will be talking about what to invest in using your SRS in the next article. Stay tune.

 

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.