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Income deductibles (Tax and ?)

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IntoTheBlue
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Income deductibles (Tax and ?)

Postby IntoTheBlue » Mon, 08 Aug 2005 10:03 pm

Hi,

I am considering a job offer, and would like to work out what my disposable income would be after all the deductibles (tax(es) / social security etc etc)

I have found tax issues here: http://www.iras.gov.sg

Q: Are there any further deductibles from income in Singapore after tax. e.g. social security / government taxes / govn. pension / compulsory insurance etc?

Many thanks

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riversandlakes
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Postby riversandlakes » Tue, 09 Aug 2005 9:31 am

are you single? it seems there's nothing more deductible from taxes for singles, except personal relief (for earning an income hehe) and cpf...
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Carpe Diem
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Postby Carpe Diem » Tue, 09 Aug 2005 11:17 am

As far as I know, you can deduct
- personal relief and dependants if any
- cpf - if any
- your days spent out of Singapore (under certain conditions)
- donations

Then, under certain circumstances, you can also have special rebates (case by case, depends on family situation).
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mayur_rajvaidya
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how much tax will be deducted

Postby mayur_rajvaidya » Tue, 09 Aug 2005 2:37 pm

Hi,
I cannot understand the details for tax calculations, just wanted to know how much tax will get deducted per year from my salary and will it be monthly or yearly..if it is yearly then in which month singapore govt will deduct tax.

My basic salary is 2750 plus allownces comes upto 3300 singapore dollars
Mayur

IntoTheBlue
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Postby IntoTheBlue » Tue, 09 Aug 2005 2:48 pm

What is CPF ?

Deductibles you mentioned are benefits I believe. I understand that having a dependant like wife and child can lead to benefits but I am really after what are the essential costs, if any, you have to pay as a permanent employee of a company.

e.g. here in Switzerland, you pay, local, federal taxes, social security and federal pension. UK you pay Tax and National Insurance. For Singapore, is it only tax, or is there anything I am missing?

I am married no kids, but I am guessing it is irrelevant.

Thanks

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riversandlakes
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Postby riversandlakes » Tue, 09 Aug 2005 2:50 pm

http://www.iras.gov.sg/ESVPortal/iit/ii ... iduals.asp

3300*12 will be your annual salary. Then find out which blanket you fall through, and calculate accordingly...
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But the world is full of fluffier ones.

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Carpe Diem
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Postby Carpe Diem » Tue, 09 Aug 2005 2:58 pm

What is CPF ?

Deductibles you mentioned are benefits I believe. I understand that having a dependant like wife and child can lead to benefits but I am really after what are the essential costs, if any, you have to pay as a permanent employee of a company.

e.g. here in Switzerland, you pay, local, federal taxes, social security and federal pension. UK you pay Tax and National Insurance. For Singapore, is it only tax, or is there anything I am missing?


OK understood. You will have to pay for income tax, the amount depends on your total income (you should find the rates on the IRAS website). That's all. No social security or other taxes that you are familiar with in Europe. It also means no social benefits such as healthcare and so on. You have to plan by yourself.

CPF means Central Provident Fund and is a kind of mandatory saving scheme, which will concern you only if you become PR (permanent resident). Please check http://www.singaporeexpats.com/forum/ftopic3444.html

I am married no kids, but I am guessing it is irrelevant.


It is relevant, because the number of dependants (spouse, children) you have has an effect on the tax computation.

Your CHARGEABLE INCOME (the one which is used for tax calculation) equals to your TOTAL INCOME (i.e. your real income) minus the PERSONAL RELIEFS (S$ 1,000 for you, S$ 2,000 for your spouse and S$ 2,000 per kid).

So if you earn for instance S$ 50,000 per year and have 2 kids, your CHARGEABLE INCOME will be 50,000 - 1,000 - 2,000 - 2x2,000 = 43,000. It means your income tax is calculated on S$ 43,000.

If you have some benefits such as company car, apartment rental, etc... They have to be included (with a %) in your TOTAL INCOME

Hope this clarifies.
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IntoTheBlue
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Postby IntoTheBlue » Tue, 09 Aug 2005 3:42 pm

Super, thanks.

I guess I would be a permanent resident, so I'll check out CPF

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Carpe Diem
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Postby Carpe Diem » Tue, 09 Aug 2005 5:32 pm

If you are coming from overseas you will most likely get EP (Employment Pass) status. After that, and if you want to, you can apply for PR. It's not an automatic process, you have to request it. And it's not because you apply that you get it.
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mayur000000

got it

Postby mayur000000 » Wed, 10 Aug 2005 9:16 am

thanks,

I think within 1000 dollars yearly , tax will be over for me if i have 3300$ salary.


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