Recommended
More Related Content
What's hot
What's hot (20)
Similar to Taxation of individuals in singapore
Similar to Taxation of individuals in singapore (20)
More from DVSResearchFoundatio
More from DVSResearchFoundatio (20)
Recently uploaded
Recently uploaded (20)
Taxation of individuals in singapore
- 1. Taxation of Individuals in Singapore Dr. CA. Nabeel Ahmed B.com, ACA, CMA, AICWA, AIA, MBA, Ph.D DVS Advisors LLP India-Singapore-London-Dubai-Malaysia-Africa www.dvsca.com
- 2. Presentation Schema Taxable and Non Taxable Income Residential Status Personal Tax Rates Filing personal Income Tax Returns Consequence of late filing/ non filing Deduction for individuals Taxation of overseas income
- 3. Taxable and Non Taxable Income When Income is taxable? And what is not ? TAXED: All income earned in or derived from Singapore is chargeable to income tax. NOT TAXED: Overseas Income & Capital Gains Income from Property or Investments Income from Trade, Business, Profession or Vocation Employment : Salary, Bonus, Director's Fee, Commission and Others, Gains from the Exercise of Stock Options, Income Received from Overseas, Pension, Retrenchment and Retirement Benefits Income earned may come from different sources such as:
- 4. Residential Status Resident of Singapore if Singapore Citizen or Singapore Permanent Resident Except for temporary absence Foreigners who stayed/ worked in Singapore for 183 days or more in the previous year Otherwise individual will be treated as non resident of Singapore for tax purposes.
- 5. Personal Tax rates : RESIDENTS Chargeable Income Income Tax Rate (%) Gross Tax Payable ($) First $20,000 0 0 Next $10,000 2 200 First $30,000 - 200 Next $10,000 3.5 350 First $40,000 - 550 Next $40,000 7 2,800 First $80,000 - 3,350 Next $40,000 11.5 4,600 First $120,000 - 7,950 Next $40,000 15 6,000 First $160,000 - 13,950 Next $40,000 18 7,200 First $200,000 - 21,150 Next $40,000 19 7,600 First $240,000 - 28,750 Next $40,000 19.5 7,800 First $280,000 - 36,550 Next $40,000 20 8,000 First $320,000 - In excess of $320,000 22 44,550 Singapore's personal income tax rates for resident taxpayers are progressive. For YA 2019, a Personal Tax Rebate of 50% of tax payable, up to maximum of $200 is granted to tax residents. Resident Tax rates
- 6. Personal Tax for Singapore Non Resident <60 Days Employment income is exempt from Tax if employment is less than 60 days in a year. 61 – 182 Days If the employment is between 61 to 182 days, employment income will be taxed at 15% or progressive resident tax rates, which ever is higher. Non Resident Director fees and remuneration, consultant fees and all other incomes are taxed at 22%
- 7. Filing Personal Income tax return Every eligible tax payer’s yearly obligation Income more than S$22,000 Income less than S$22,000 File when informed by income tax authority or else not mandatory Mandatory to file income tax return e-filing Paper filing 18th April 15th April DueDates
- 8. Steps : For tax resident Individual For Non resident individual For Self employed Form B1 Form M Form B Filing of Income tax return by 15th or 18th April Receipt of Notice of Assessment (NOA) or tax bill Received within May to September Would indicate tax payable Pay tax amount within 30 days In case of disagreement inform authorities within 30 days along with reasons 1 2 Forms :
- 9. Consequence for late/ non filing of tax returns Impose a late filing fee not exceeding S$1000 Issue estimated notice of assessment Summon to court • File the returns immediately. • Pay late filing before due date in letter to avoid summon to court • It may be based on past year’s income and information available with IRAS. Upon receipt of letter notifying late fees Summons may be issued if IRAS does not receive • Required income tax return and or • Payment of late filing fee by the due date.
- 10. How is Taxable Income & Net Taxes Computed? • The Inland Revenue Authority of Singapore (IRAS) provides the formula in determining the taxable income of an individual. Total Income Less Expense = Statutory Income Statutory Income Less Donations = Assessable Income Assessable Income Less Personal Reliefs = Taxable Income Taxable Income @ Respective tax rates = Tax Payable Tax Payable – Tax Rebates = Net Tax Payable
- 11. Deductions for individuals (Reliefs, Expenses etc.) Deduction for Employees Claim tax deduction on employment expenses “ wholly and exclusively” incurred in earning income Deduction for rental income • Expense solely for the purpose of rental income. • Expenses incurred during the period of tenancy Examples: Interest paid on loan on property that is let out. Property tax incurred during rental period Example: Travel Expenses, Subscription for professional updates Personal income tax relief cap From year of assessment (YA), the total amount of personal income tax reliefs can be allowed subject to a relief cap of S$80,000 per YA.
- 12. Taxation of overseas income Generally, overseas income received in Singapore on or after 1 Jan 2004 is not taxable and need not be declared. This includes overseas income paid into a Singapore bank account. Overseas Income is taxable in Singapore if It is received through partnerships in Singapore Trade/ Business overseas is incidental to Singapore Trade. Employed overseas on behalf of the Singapore Government Overseas employment is incidental to Singapore employment If an income is taxable both in Overseas and Singapore, then one shall apply for double taxation relief to avoid double taxation.
- 13. Parenthood Tax Rebate Scheme The Parenthood Tax Rebate (PTR) is given to tax residents to encourage them to have more children. To qualify, you must be a Singapore tax resident who is married, divorced or widowed in the relevant year.
- 15. Thank You DVS Advisors LLP India-Singapore-London-Dubai-Malaysia-Africa www.dvsca.com Copyrights © 2019 DVS Advisors LLP