26 February 2015

Another Way to Avoid Paying More Tax - The Act of Giving

Previously, drawing upon the latest budget announcements (2015), I shared about One Way to Avoid Paying More Tax. There is yet another interesting way to avoid paying more tax come 2016, and this involves Giving from the Heart.

The tax deductible for donations to recognised charity organisations will be increased from 250% to 300% for donations in this Jubilee year. For subsequent years till the end of 2018, the deductible will revert to 250%.

Suppose I were to donate $1,000. The tax deductible at 300% would be $3,000. If my tax bracket is at 19.5%, that would be $585 of tax avoided. Looking at it from another angle, I would effectively be spending only a net amount of only $415 to give $1,000 to charitable causes.

Want to start giving now? Try SG Gives.

The nice thing is that these recognised charities automatically update IRAS. So there is no need to make specific declarations to claim these deductibles in our income tax submissions. It is so seamless. Effortless. Efficient.

One Way to Avoid Paying More Tax
Giving from the Heart
Giving Back to Society - SG Gives

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