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income tax bye bye for now

 In Singapore, we can pay our income tax in instalments, without any interest. So naturally that's the default payment method for most people including this uncle. IRAS will serve you your tax notice, and with it, if you already have GIRO set up, the instalment payments per month, down to the exact cents. Based on my personal experience, the instalment starts in May the following year your earned income. E.g. you start paying income tax from May 2026 for your assessed income in CY 2025. For GIRO deduction, it happens around 6th of each month. 

So, you will still be paying instalments up to 6th April 2026 for income tax you pay on your earned income in CY 2024. 

So, uncle retired just after mid 2024, so uncle was still paying a mid 4-figure instalment for 2024 income. And today is the last day of that instalment! Hooray! 

So is uncle income tax free? well, not really, but closer than ever. Uncle did some short term job in the last 3 months in 2025 going into first month of 2026, so I will have income tax for what I made in 2025. It's a tiny fraction of what I used to pay, like around $50 per month. 

What about April 2027? I think it will drop to zero, since I only worked 1 month in 2026, and with all the deductions, it means the taxable is below $20k, so no tax lor. In SG, if your taxable income is below $20k, there is no tax. 

So Uncle is going to be really zero tax paying in 2027! Huat ah!

Well, I already Huat from this month on, since its going to be just $50 from May onwards, which is meh.

It's a relieve, since it drains my cashflow much slower, giving me breathing room until I can sell my current place in 3-4 years' time to unlock the equity and move to a cheaper and newer place. 

Uncle has done my nation building part and it's now in the hands of those still working lol. 

Time to enjoy all the things my wonderful govt provides using tax payers money, including mine. Reap the rewards !




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