Low tax rate but does the rent make up for that?

[toutfou]

Hi folks,

I've been reading around quite a bit the last couple of days and I feel the salary I have in mind will work out fine in terms of being able to live comfortably and save. I'm just now trying to figure out if it's acceptable for the responsibilities of the position on offer.

I was wondering if anyone feels the high rent costs (3000-4000 is my outlook, living alone) make up for the lack of high taxation? In that, does it feel like you're left with as much free cash at the end of the month as you would have in a place with a higher tax percentage? (Say 33%) I'm going off an almost exact conversion of my old salary on Euro into SGD and at the moment it looks like it'll be fine. Has anyone found/wished they'd added a bit of inflation to theirs if they followed this method?

Also, can anyone explain this part of the tax for me?

Taken from: http://www.mof.gov.sg/taxation/indiv_in ... rates.html

On the first S$80 000 0% S$4 300
On the next S$80 000 14% S$11 200

The last sum being the Gross Tax Payable. Does this mean that until 80k has been earned in Singapore, the max payable is 4 300? Once going over that, it's 14%? And does it reset each tax year?

Thanks very much
Tout

[sundaymorningstaple]

It means the cumulative tax on the first 80K is 4,300 which is based on the various other tax rates on the different bracket below 80K. All other income above 80K up to 160K will be taxed at a rate of 14%. If your annual income is more than 160K then the first 160K will have a cumulative tax of 16,500 and the additional income above 160K will be taxed at 17%.

Yes it is reset every year. It's based on your "Annual Income" not lifetime income.

[Gilly]

If you get your company to put your rent through their books then you'll be liable for less tax. I managed to decrease my total tax by 4 %age points by doing that.