Thursday, March 5, 2009

Compute Your Income Tax in Singapore

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Posted on Thursday, March 5, 2009

Compute Your Income Tax in SingaporeThis afternoon, I received an email from our agency regarding the filing of the income tax for the year 2008. In the email, there was an attached document that states my gross taxable amount for the year 2008. I asked my colleagues on the computation and was shocked with what I have discovered.

According to the IRAS website or the Singapore version of BIR, the first step is to determine the number of days in Singapore. If you are less than 183 days, you will have a fixed 15% tax. On the other hand, if you are more than 183 days, the first 20,000 income has zero tax. For the next 10,000, there is a 3.5% tax.

I computed my number of days to be less than 183 days based on my employment date. I was dismayed and immediately calculated on how much is my due. It is more than 1500 SGD. Wah! I can buy a new laptop with that money. Since, I don't want to pay that much money, I searched the IRAS site and looked for a loop hole. Maybe there is a condition that can somehow lessen my tax. Lo and behold, I found this loop hole for the computation of the number of days. Apparently, the number of days can be counted on the arrival date here in Singapore. I arrived here in June 6, 2009 and that is even more than 183 days. Thank God!

Too bad for those who started after July, they have to pay a bigger tax.

21 Responses to “Compute Your Income Tax in Singapore”

Denis said...
March 6, 2009 at 11:02 AM

awww i thought foreign workers are not compelled to local tax.


Sherry said...
March 6, 2009 at 2:09 PM

yeah tax, you need alot calculation. You are lucky!


Sherry said...
March 6, 2009 at 2:10 PM

tweet http://twitter.com/sherrygo/status/1287197595


Sherry said...
March 6, 2009 at 2:10 PM

my dad is counting tax he needs to pay.


WebbieLady said...
March 7, 2009 at 10:10 AM

People get quite nervy and pis$ed off when tax is being discussed about.. I used to be a tax and financial auditor back in Ph so I really see the reactions..


WebbieLady said...
March 7, 2009 at 10:12 AM

The 5th to dig this post over here http://digg.com/business_finance/Compute_Your_Income_Tax_in_Singapore with this comment, “tax is also penal in nature at times”


WebbieLady said...
March 7, 2009 at 10:14 AM

My salary tax is 25% here... sigh, it is frustrating to know at times that if you dont pay tax, you could have been a few hundreds or thousands of euros richer... sigh...


WebbieLady said...
March 7, 2009 at 10:15 AM

tWITTERED HERE: http://twitter.com/webbieladycont/status/1291257637


pehpot said...
March 7, 2009 at 3:58 PM

ha? you mean every 10,000 you have to pay 3.5%?

ahh.. oc talaga..nag compute pa eh.. ayan alam ko na sweldo mo LOL

Make or Break


Sherry said...
March 8, 2009 at 2:57 PM

my dad prefer to do his tax on the paper and not online.


Sherry said...
March 14, 2009 at 11:57 PM

with computer today it is so easy to pay income tax!


Rolly said...
March 15, 2009 at 3:27 AM

I think Singapore inland revenue is patterned by Britain.


Rolly said...
March 15, 2009 at 3:28 AM

but i'm not good in computing it. My employer does.

dugg-ronel05, twitted-baconchezjoro and commented here 2x


WebbieLady said...
March 15, 2009 at 8:12 PM

@Pehpot,

Hahah.. nice remark.. Lemme see how much he earns as I know Singapore salaries are better.,.. My friend's startup was 40.000 equivalent and I believe it was doubled when she became permanent.


WebbieLady said...
March 15, 2009 at 8:15 PM

The rules are almost the same in Philippines except that the basis in Philippines is 5% while if you are less than 183 days, that would make you a non resident alien whose tax is fixed at 25%... that was around 2005 when I had my law on taxation studies,... maybe now it is much higher. Singapore's tax is relatively low.

I pay 25% in my gross here... Darn!


WebbieLady said...
March 15, 2009 at 8:16 PM

Yup, Makoy is earning maybe at least 60,000 php a month. Below that, I don't think he can live in SIngapore. I heard the cost of living there is really high.


WebbieLady said...
March 15, 2009 at 8:17 PM

@Rolly,
Indeed the employer usually files it for you.,.. Mine here is also automatically deducted. European tax are such a bitch! grrr...


WebbieLady said...
March 15, 2009 at 8:18 PM

But dont worry Makoy, you see naman the country eh, That's where your taxes go. If Philippines can be like Singapore, I dont think people will complain much about their tax dues.


Sherry said...
March 15, 2009 at 11:45 PM

@Rolly I am not good in computing too.


Sherry said...
March 15, 2009 at 11:46 PM

@Webbielady, salary here is taxed too! but its based your salary skill, family background, etc.


Sherry said...
March 15, 2009 at 11:47 PM

"People get quite nervy and pis$ed off when tax is being discussed about.." @Webbielady yupe! you can say that again.


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