2013 budget and Income tax

[zzm9980]

Just curious, what happens to people who have left Singapore for good towards the end of last year or even last month and paid the income tax clearance as per the older tax structure i.e. without the rebate.

Few of my friends left for good very recently and I was chatting online with one of them and just told him about our new tax rebate and then I started wondering if there is anyway they can get back the excess tax paid?

IRAS routinely adjusts and refunds when things change. I expect a minor refund since I already paid four months of taxes when I switched jobs early last year. I would suggest they contact IRAS and ask how to file an ammended return when out of the country.

[sundaymorningstaple]

I would suppose the first thing would be to determine if the rebate is retroactive or only for those who complete an entire tax year in Singapore, which more stands to reason.

[Wd40]

Just curious, what happens to people who have left Singapore for good towards the end of last year or even last month and paid the income tax clearance as per the older tax structure i.e. without the rebate.

Few of my friends left for good very recently and I was chatting online with one of them and just told him about our new tax rebate and then I started wondering if there is anyway they can get back the excess tax paid?

IRAS routinely adjusts and refunds when things change. I expect a minor refund since I already paid four months of taxes when I switched jobs early last year. I would suggest they contact IRAS and ask how to file an ammended return when out of the country.

I dont see how you can get a refund. Last year IRAS assessed tax based on just 4 months of income, so the tax amount was significantly lower(unless you paid the flat 15% tax that non residents pay).

When your current company submits the income figures to IRAS, they will calculate the tax incurred for the cumulative income from both companies and then less the tax already paid by you for 4 months. So you still have to pay tax rather than get a refund.

[Wd40]

I would suppose the first thing would be to determine if the rebate is retroactive or only for those who complete an entire tax year in Singapore, which more stands to reason.

Yeah! Exactly. I dont see anything mentioned in the IRAS site about this in the tax clearance section. Looks like a grey area to me. Anyways, I was just asking out of curiosity. Its for my friends to figure out whether they can get the tax refunds or not.

[zzm9980]

I dont see how you can get a refund. Last year IRAS assessed tax based on just 4 months of income, so the tax amount was significantly lower(unless you paid the flat 15% tax that non residents pay).

Since I'm on a PEP, I had to pay January through April 2012 taxes at the end of April when I switched employers. ~8months in my current role was just short of the $1500 rebate, so some of the first four months will push me to 1500, and give me some money back. Admittedly not a hell of a lot though.

[Wd40]

IRAS routinely adjusts and refunds when things change. I expect a minor refund since I already paid four months of taxes when I switched jobs early last year. I would suggest they contact IRAS and ask how to file an ammended return when out of the country.

I dont see how you can get a refund. Last year IRAS assessed tax based on just 4 months of income, so the tax amount was significantly lower(unless you paid the flat 15% tax that non residents pay).

When your current company submits the income figures to IRAS, they will calculate the tax incurred for the cumulative income from both companies and then less the tax already paid by you for 4 months. So you still have to pay tax rather than get a refund.

Since I'm on a PEP, I had to pay January through April 2012 taxes at the end of April when I switched employers.

Ok. But, how does being a PEP matter in this case? I am EP holder and when I switched companies in Aug 2011, I had to pay taxes for the 8 months in Aug 2011 and then in Jun 2012, I had to pay the remaining tax taking into account the cumulative income of both companies.

I still dont see how you will get a refund.

[zzm9980]

Ok. But, how does being a PEP matter in this case? I am EP holder and when I switched companies in Aug 2011, I had to pay taxes for the 8 months in Aug 2011 and then in Jun 2012, I had to pay the remaining tax taking into account the cumulative income of both companies.

I still dont see how you will get a refund.

PEP/EP matters because we get a tax hold.

Because the $1500 rebate applies to taxes you pay in 2012. I paid a third of my taxes already, and the rebate wasn't factored in. After I calculate my other eight months of taxes, the amount owed is slightly under what would earn me the full $1500. If I factor in the first four months, I exceed the $1500. So the extra paid in the previous tax hold should be refunded and applied towards the balance owed for the rest of 2012.

[Wd40]

Sorry I replied before you edited your post.

But, I still think you are calculating it wrong.

There is no way that the 30% rebate on the tax of 4 months salary can be higher than the tax accrued on incremental income of 8 months.

Edit: I think I know what you are doing. You are plugging into the excel sheet the 4 months salary 1st and then seperately plugging in 8 months salary. Thats not how its done. You need to plug in your entire 12 months salary to calculate your total tax liability for the year. Then substract the 4 months tax that you paid and the difference is what you need to pay once the additional NoA is ready.

[sundaymorningstaple]

Sorry I replied before you edited your post.

But, I still think you are calculating it wrong.

There is no way that the 30% rebate on the tax of 4 months salary can be higher than the tax accrued on incremental income of 8 months.

Edit: I think I know what you are doing. You are plugging into the excel sheet the 4 months salary 1st and then seperately plugging in 8 months salary. Thats not how its done. You need to plug in your entire 12 months salary to calculate your total tax liability for the year. Then substract the 4 months tax that you paid and the difference is what you need to pay once the additional NoA is ready.

Spot on. And the rebate will be calculated against the revised tax for the whole year. It's for this reason why I think you would have to have worked here or at least been present here through the end of the tax year in order to activate the rebate. But, on the other hand, Even if you are here and between jobs, you would still be entitled to any rebate as well, so I guess it's possible.

[zzm9980]

Edit: I think I know what you are doing. You are plugging into the excel sheet the 4 months salary 1st and then seperately plugging in 8 months salary. Thats not how its done. You need to plug in your entire 12 months salary to calculate your total tax liability for the year. Then substract the 4 months tax that you paid and the difference is what you need to pay once the additional NoA is ready.

Ahh yes, that is what I did. Makes sense now.

edit: I owe a lot more money than I thought. Like $9,000 more. Thanks for ruining my day

[sundaymorningstaple]

And that's before your excess over $95,100 is whacked by Uncle Sam!

[zzm9980]

And that's before your excess over $95,100 is whacked by Uncle Sam!

I owe uncle sam quite a lot more than what I owe Singapore.

[sundaymorningstaple]

No doubt.

[Mi Amigo]

And that's before your excess over $95,100 is whacked by Uncle Sam!

I owe uncle sam quite a lot more than what I owe Singapore.

I'll buy you a beer on the 8th my friend. Have to look after my American cousins.

[Wd40]

So, US citizens are taxed twice, cannot make any equity or unit trust investments but then they dont need to pay ABSD.

Wonder why so much special treatment for them, both positively and negatively