Find the optimal split between salary and dividends to minimize your total tax burden as a Singapore company director.
This calculator provides estimates only. Actual tax liability may differ. Consult a qualified tax advisor for personalized advice.
Total employer + employee contributions to your CPF account
Based on maximizing take-home cash
💡 By adjusting your salary to $24,000, you could save $12,468 more per year in take-home cash.
⚠️ Note: IRAS requires director salaries to reflect a reasonable market rate for services rendered. Setting an artificially low salary purely for tax savings may be challenged under the arm's length principle.
| Metric | All Dividend | Your Split | High Salary |
|---|---|---|---|
| Salary | $0 | $60,000 | $127,500 |
| Dividend | $141,500 | $76,409 | $5,917 |
| Personal Tax | $0 | $1,950 | $9,075 |
| Corporate Tax | $8,500 | $3,392 | $263 |
| Total Tax | $8,500 | $5,342 | $9,338 |
| CPF Savings | $0 | $22,200 | $35,520 |
| Take-Home Cash | $141,500 | $122,459 | $105,142 |
| Effective Tax Rate | 6.0% | 3.9% | 7.0% |
Banks typically require salary income (not dividends) for mortgage eligibility. Consider maintaining sufficient salary if you plan to apply for a housing loan.
CPF contributions earn 2.5–5% interest and can be used for housing, healthcare, and retirement. Zero salary means zero CPF contributions.
IRAS requires director salary to be at "arm's length" — a reasonable market rate. Setting salary at $0 purely for tax avoidance may be challenged.
Dividends can only be paid from company profits. If your company has no retained earnings, dividends cannot be distributed.
Every business is unique. Get a free 15-minute consultation with our Chartered Accountant to discuss your specific salary vs dividend strategy.