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20% Income Tax rebate!

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revhappy
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20% Income Tax rebate!

Postby revhappy » Tue, 15 Mar 2011 8:52 pm

Hey Guys,

Not sure if everyone is aware of this. But, I just calculated my income tax for this year and found out that IRAS is giving a 20% one-off rebate on the income tax payable, capped at $2000. So if your income tax payable for the YOA 2011 is $4000 you actually have to pay just $3200

And on top of that our income tax rates are reducing next year such the one-off rebate is not really one-off but our income tax liability will actually reduce by 20%.

Singapore I love you. :kiss:

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aster
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Postby aster » Tue, 15 Mar 2011 10:23 pm

Yeah, the rebate is back after a year's wait.

Remember that it is applied automatically, so it's not something that you need to apply for when filing your taxes for the previous year.

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Postby JayCee » Wed, 16 Mar 2011 11:13 am

Yeah, saw this a few weeks ago when they announced the budget, very nice :)

richie303
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Postby richie303 » Thu, 31 Mar 2011 8:41 am

As I have only been in Singapore for 7 months, I am due to pay non-resident tax for last years earnings, do you know if the 20% tax rebate is also for non-resident tax?

This is simply because I spent less than 183 days in Singapore last year, this year I expect to see resident tax rates and imagine my bill will be similar next year after a full years salary than what it is for 4 months!

Any information would be excellent.

Cheers

Richie
Richie - East Coast Superbabe...

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Postby JayCee » Thu, 31 Mar 2011 9:55 am

richie303 wrote:As I have only been in Singapore for 7 months, I am due to pay non-resident tax for last years earnings, do you know if the 20% tax rebate is also for non-resident tax?

This is simply because I spent less than 183 days in Singapore last year, this year I expect to see resident tax rates and imagine my bill will be similar next year after a full years salary than what it is for 4 months!

Any information would be excellent.

Cheers

Richie


If you're going to be here for a year or two then you will be taxed at resident rates for last year too

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Postby richie303 » Thu, 31 Mar 2011 12:39 pm

How do I go about proving that?? My current contract is for another 6 months and then I will be moving on somewhere else potentially (within Singapore)
Richie - East Coast Superbabe...

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sundaymorningstaple
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Postby sundaymorningstaple » Thu, 31 Mar 2011 12:46 pm

When you got your current contract Employment Pass, how many months was the employment pass for? If it was for 12 months and your employer is on the auto inclusion scheme (most probably) you will automatically be charged based on resident rates. However, should you leave before the requisite number of days, then an amended return will need to be filed (actually, probably not either as the employer will be filing an IR-21 Tax Clearance) to change the tax rate back to 15% flat rate.

This is just another way to show some of the naysayers on this board, how the various government databases are interconnected now. Here it's showing the link up between ICA, MOM & IRAS.

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Postby richie303 » Thu, 31 Mar 2011 7:24 pm

Thanks SMS, it seems you always answer my questions! Mch appreciated!

My original pass was for 1 year and I am on auto inclusion, does that mean I can claim tax relief for the wife and kids if I'm counted as resident?

Cheers again!

Oh, and I'm aware of how close the agencies are tied together in the government, let's just say I work quite closely with them! :)
Richie - East Coast Superbabe...

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sundaymorningstaple
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Postby sundaymorningstaple » Thu, 31 Mar 2011 9:27 pm

If you qualify for resident tax rates, you can claim the same reliefs that normal citizens can claim.

And yeah, maybe you can confirm what I've been saying about the new database linkup being implemented by all the gahmen agencies, especially ICA and the Immigration checkpoints. (If you can't say anything, I understand that as well). :cool:

edited for inability to type contractions!
Last edited by sundaymorningstaple on Thu, 31 Mar 2011 10:14 pm, edited 1 time in total.

richie303
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Postby richie303 » Thu, 31 Mar 2011 9:59 pm

Cheers SMS, I'll look into the tax breaks, more great info!
Richie - East Coast Superbabe...


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