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Disposal Income - Enough?

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Ric Flair
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Disposal Income - Enough?

Postby Ric Flair » Thu, 04 Jun 2015 8:16 pm

So after deducting what I plan to budget for Rent each month I am probably going to be left with about $3.5K - $4K SGD (before taxes). My question is will this be plenty to cover 2 adults and an 18month olds outgoings? We are not planning on living lavishly by any means but also don't really want to be in a position where we are living pay-check to pay-check (otherwise I won't relocate from my current situation).

My very rough monthly estimates so far based on living in a approx 100sqm 2 Bed Apartment are:
Water/Gas/Elec $350 (based on 'hopeful' frugal Air Con Usage)
Cable TV / 2 x Mobiles / Internet $250 (Mainly interested in subscription TV that shows EPL & F1)
Transport $300 (based on travelling a few KM by bus / MRT to work every day)

Based on the above guesses it would leave me somewhere between $2.5k - $3k a month to worry about food, unexpected costs and planning for taxes. Are these figures miles off or is there anything obvious I have missed out?

My other question is about taxes. Is income tax deducted at source by your employer every month or are you paid the gross amount so then have to pay a lump sum every year? (I have read conflicting answers across the internet).

Thanks guys!

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Strong Eagle
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Re: Disposal Income - Enough?

Postby Strong Eagle » Thu, 04 Jun 2015 9:59 pm

My estimate is that your post rent disposable income will be fine. Food will be somewhat more expensive at supermarkets, substantially more expensive than elsewhere to eat out at a good restaurant. Alcohol is very expensive.

Income tax is not normally withheld by the employer and not required to be withheld by IRAS. A few employers do include withholding as part of the employment contract as they are ultimately responsible for your tax if you do a runner while on EP.

You receive a Notice of Assessment from IRAS in April, need to pay by September, I think.

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Ric Flair
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Re: Disposal Income - Enough?

Postby Ric Flair » Thu, 04 Jun 2015 10:22 pm

Thanks for your reply Strong Eagle. Do you think my cost estimates are probably in the right ball park then?

Good to know about the tax situation too, it will be a new situation for me to deal with. As I plan to start work there in September, does that mean for 2015 I will need to pay flat 15% for non-residents tax (less than 183 days domiciled in the tax year) then revert to resident tax rates for 2016?

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Re: Disposal Income - Enough?

Postby sundaymorningstaple » Thu, 04 Jun 2015 10:43 pm

If your EP is valid for more than 12 months, which IRAS will know, they will normally compute your taxes using the resident rates provided you are still employed at the time of filing of your tax return. The employer, if more than 10 people employed will submit your income to the government and they will compute your taxes for you unless you submit an amended return.

If the do tax you at 15%, you can always amend it after you have been here for more than 183 days, but the odds are they will just play ball at resident rates.

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Re: Disposal Income - Enough?

Postby ATLDML » Fri, 05 Jun 2015 9:49 am

I think your estimates may be a little high, but not terribly so.
My utility bill is $250-275 for 1600sf, incl fairly liberal A/C.
Internet - $50-60 (MyRepublic fiber)
Phone - I guess it depends on the plan. I just use a prepaid card 1GB/30days = $20/mo. I use Skype to make calls. You're on wifi so much here it's pretty easy not to gobble up tons of data.
We opted not to get cable since there are so many ways to stream whatever programs we wanted...
Public transportation is super cheap. Solo, I spend under $100/mo.
Food is what I underestimated. But go to www.redmart.com - you can price out just about anything you want to at least gauge what the supermarkets will cost (then you can pare that down as you get more savvy, shop at wet markets etc).

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JR8
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Re: Disposal Income - Enough?

Postby JR8 » Fri, 05 Jun 2015 2:47 pm

You'll find my recent thoughts and costs re: utils, transport, groceries etc: here -> viewtopic.php?t=106456
'Do it or do not do it: You will regret both' - Kierkegaard

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Re: Disposal Income - Enough?

Postby American » Sat, 06 Jun 2015 2:52 am

Seems like you'll have enough for now but need to consider how long you'll be here and if you plan on having any other kids,education and activities being the biggest concern. As a foreigner without PRyou will have a tougher time getting into the local schools, so you'll need to consider International School. What about travel? One of the benefits of living here is all the amazing regional travel. Singapore is a small country and unless you find a regular activity to get involved with, you might feel like you've run out of things to do. Sooner or later you might want to allocate funds for international travel.

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Re: Disposal Income - Enough?

Postby JR8 » Sat, 06 Jun 2015 9:43 am

^+1
'Do it or do not do it: You will regret both' - Kierkegaard

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Re: Disposal Income - Enough?

Postby kaseyma » Sun, 07 Jun 2015 2:20 am

Strong Eagle wrote:You receive a Notice of Assessment from IRAS in April, need to pay by September, I think.

Doesn't IRAS allow monthly installments if you set-up payment via GIRO?

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Re: Disposal Income - Enough?

Postby Strong Eagle » Sun, 07 Jun 2015 7:42 am

kaseyma wrote:
Strong Eagle wrote:You receive a Notice of Assessment from IRAS in April, need to pay by September, I think.

Doesn't IRAS allow monthly installments if you set-up payment via GIRO?


There is no government mandated income tax withholding system in Singapore. Make an automatic deposit from your checking to savings account each month.

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Re: Disposal Income - Enough?

Postby Wd40 » Sun, 07 Jun 2015 10:46 am

SE, I think Kaseyma, is talking about paying the Income tax after it is due, via GIRO installments.

I personally like to pay it off one shot, so that my personal PNL is easy to manage. I dont want to keep remembering how much I owe and what I can invest/spend, its a such a small amount anyways.

But this year and last year, it has been a unique situation for me. I have changed jobs and had tax clearances done, so employers have withheld my last month salary and paid off the tax in full, for previous year as well as current year partial.

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Re: Disposal Income - Enough?

Postby rarkins » Sun, 07 Jun 2015 5:53 pm

Wd40's point about withheld salary is a good one to know about, for anyone micromanaging when they pay their tax. Pretty much as soon as it's signalled that you're going to leave, employers need to withhold your salary until all tax is computed and paid.

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Re: Disposal Income - Enough?

Postby the lynx » Mon, 08 Jun 2015 9:42 am

To add, if your EP is terminated right before monthly GIRO payment commences and in the middle of your payment scheme, your GIRO arrangement is automatically terminated and you'll be asked to pay for the remainder immediately.

I've tried both GIRO payment and one-time payment; I've always preferred one-time payment. Makes my accounting easier.

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Re: RE: Re: Disposal Income - Enough?

Postby ecureilx » Mon, 22 Jun 2015 11:30 pm

JR8 wrote:[A friendly word in your ear. I'd suggest losing that tag-line advert, before this forum 'loses' you].

Hello Mr JR8, I am sure he knows it. Mods can sanitize it anyway

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Re: Disposal Income - Enough?

Postby JR8 » Tue, 23 Jun 2015 12:18 am

Maybe so, but there is so much spam getting through these days, at times 1/2+ the posts in the 'New Posts' list, that when a spammer is on a roll, a little pre-emptive action..... oh, you get it.
'Do it or do not do it: You will regret both' - Kierkegaard


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