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Tax Query

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A5tro
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Tax Query

Postby A5tro » Wed, 25 Jul 2007 12:16 pm

Hi All,

I have recently been offered a role in Singapore, instead of giving me just the gross dollar value of my current local salary in Singapore dollars (Australian) they did tax equalisation so that my net salary remains equal instead...dont ask...

Anyway the Gross package in SGD is 67000 and I have been told that this will attract a tax rate of just 4.5% does this sound right?? I knew tax in singapore was very low but is it THAT low??

Just want to make sure I dont get there and then get hit with a significatly higher tax rate.

Thanks in advance

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sundaymorningstaple
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Postby sundaymorningstaple » Wed, 25 Jul 2007 2:21 pm

This should help:

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

His assessment of 4.5% is pretty accurate as it is a graduated tax structure which starts at 3.5%. Based on your income figure the last 27,000 will be taxed at 8.5% with the 1st 40K being only $900 in taxes.

sms

A5tro
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Postby A5tro » Wed, 25 Jul 2007 4:05 pm

Thats great, thanks for your help.

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jpatokal
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Re: Tax Query

Postby jpatokal » Thu, 26 Jul 2007 3:12 pm

A5tro wrote:I have recently been offered a role in Singapore, instead of giving me just the gross dollar value of my current local salary in Singapore dollars (Australian) they did tax equalisation so that my net salary remains equal instead...dont ask...

Never accept a salary cut when going overseas, no matter what BS logic your empoyer is flinging at you. As you've noticed, income taxes in Singapore are very low, but they make up for it with very high taxes on cars, booze, cigarettes, etc. More importantly, though, if you accept a low salary in Sing, you're going to make a much harder time clawing it back if you ever return to Oz.
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