Calculating your Singapore Tax would depend whether you are a Resident or Non-Resident of Singapore.
Tax resident or non-resident?
One will be treated as a tax resident in Singapore for a certain Year of Assessment (YA) if one is:
• a Singapore Citizen who normally resides in Singapore except for temporary absences; or
• a Singapore Permanent Resident (SPR) who has established his / her permanent home in Singapore; or
• a foreigner who has worked / stayed in Singapore for not less than 183 days in the year before the YA (excluding director of company).
If you do not meet the above conditions, then you are considered a non-resident of Singapore for taxation purposes in Singapore.
Tax Rates:
If you are a tax resident, you will calculate your income tax based on the rates table ceiling and category that you fall into. However, as a concession, from YA 2013 onwards, there is a personal tax rebate granted for up to a maximum of $1,500 depending on your age:-
1) For taxpayers below 60 years of age as at 31 Dec 2012 – 30% rebate
2) For taxpayers 60 years of age & above as at 31 Dec 2012 – 50% rebate
However, if you are a non-resident individual, and if you are earning employment income, it will be taxed at 15% or the resident rate, whichever gives rise to a higher tax amount. As for the director’s fees, consultation fees and all other income that you received, these will be taxed at 20%.
Calculation of Singapore Income Tax:
Other than knowing whether you are a Singapore Resident or Non-Resident of Singapore, here are some other things you need to take note when computing your Individual Tax. These include employment income, donations, reliefs (such as earned income relief, qualifying child relief, employee CPF contribution relief). Some other important things to note is whether you qualify for parenthood tax rebate, and to remember to take into account the personal tax rebate as well if you are preparing your tax computation for YA 2013.
Notice of Assessment:
Once you had calculated your personal income tax and filed with the Inland Revenue Authority of Singapore (“IRAS”), you will receive a notice of assessment (also known as “NOA”) in due course. NOA refers to your tax bill. It details the types of income and amount of this income that is subjected to tax, calculates the taxable amount you need to pay, shows the deductions given, as well as the credit balance that will be refunded to you.
Reminder from J Accounting Services:
J Accounting Services would like to remind the public that each of your individual income tax is due on 15 April each year, and it should be filed not later than 18 April. If you are having problems calculating your Singapore personal income tax, fear not! J Accounting Services is here to help you. We do offer individual tax services. Hence, you can now have a peace of mind when you engage us to handle the tax matters for you.
