The term "free-rider" is currently having its day on the Internet. As I've made a decision to many years ago to align more fully with our Capitalist system rather than the Political system, I think my actual aim is to find as many legitimate means to free-ride in Singapore, always put in slightly less to extract maximum benefits from the system.
The truth is that the kind of moves I make are quite noob-level. An ordinary employee can use the following means to free-ride in Singapore today :
- Open an SRS account, put in the maximum $15,300 every to get tax deductibles.
- Inject $7,000 into you and your spouse's CPF-SA.
- Take more public transport as it is running at a loss and funded by tax-payer money.
- If you serve NS, use credits to buy New Balance running shoes. I even got a pair for my dad.
- Invest in securities as dividends do not flow into personal taxation numbers and are not accounted for qualifying for HDB ownership.
- Buy REITs as REIT incomes do not even incur taxation at the corporate level when the REIT distributes 90% from rental proceeds.
- $200,000 of revenue does not attract taxes for the first three years.
- Beyond the first $200,000, legitimate deductions for company expenses can be made. This is a 17% discount on cloud-hosting fees and software purchases which I already pay as an investment trainer. I can also buy an explicit PC or tablet to be used exclusively for work to free up my home PC resources.
- I can pay myself a minimum salary to lower the tax burden more.
- If I hire a local worker, I can even get $30,000 under the Jobs Growth Incentive.
- This is not counting the startup funding I can get for my business. I already have a small web app launched for my ERM community.