Can You Reduce Tax Legally in Singapore? 5 Legitimate Strategies

As a business owner or high-income individual in Singapore, you’re likely asking: “Can I reduce my tax bill without breaking the law?” The answer is “Yes” if you understand and apply the right strategies.

Morrison Consultants can help clients to uncover tax-saving opportunities that are fully IRAS-compliant and aligned with Singapore’s pro-business tax framework. Here are 5 proven and perfectly legal ways to reduce your tax burden:

Maximise Tax Deductions and Allowable Business Expenses

1. Don’t leave money on the table. Many businesses fail to fully claim allowable deductions such as staff salaries, marketing costs, rental expenses, and even professional fees.

2. Pro tip: Proper documentation and classification of expenses is key. We help to ensure that your claims are IRAS-ready and audit-proof.

Leverage Tax Incentives and Government Schemes

1. Singapore offers various schemes to support business growth and many come with tax perks:

• Startup Tax Exemption for qualifying new companies

• Partial Tax Exemption for all companies

• EDG Grants that support productivity, digitalisation, and innovation

1. Pro tip: Morrison can help you to identify which schemes your company qualifies for and handle the application and reporting process seamlessly.

Use Group Relief and Loss Carry-Back Options

1. If you are running multiple entities under one group, group relief allows one profitable company to offset its taxable income against another’s unutilised losses. Therefore, it may legally lower your group’s overall tax bill.

2. Similarly, loss carry-back will allow you to offset current-year losses against prior-year profits for claiming tax payment. 

3. Pro tip: These tools are powerful but require correct structuring and timely submission where we can expertly manage it.

Optimise Director’s Fees, Dividends & Salaries

1. The way you pay yourself or your key executives can significantly impact personal and corporate taxes.

2. Pro tip: With Morrison’s strategic planning, we can help you to structure compensation packages that optimise tax positions for both the business and its directors.

Plan Ahead for Capital Gains and Investments

1. Singapore doesn’t tax capital gains but not all profits qualify for exemption. For example, frequent property or stock trading may be reclassified as trading income, which is taxable.

2. Pro tip: Our advisors guide you on how to structure asset sales, investments, or exits to legally qualify for capital gains exemption and avoiding unintended tax surprises.

Why Work With Morrison?

We don’t just file your taxes and even help you to strategically plan them. Our team of tax professionals brings deep expertise and local insight, for ensuring that you are compliant while maximising every legitimate tax-saving opportunity.

• IRAS-compliant advice

• Proactive planning rather than reactive filing

• Tailored strategies for SMEs, startups & established groups

• Qualified accountants with deep financial and tax planning experience

• Accredited Tax Advisor (Income Tax & GST) recognized by Singapore Chartered Tax Professionals (SCTP)

In short, you are partnering with accredited advisors who can understand the full picture of tax, finance, and compliance in Singapore.

Book a free consultation with Morrison today and find out how to legally maximize your savings.