Ahead of the tax filing deadline i.e. April 15, Singapore company registration specialist Rikvin has created a Personal Income Tax Calculator for Singapore tax residents.
This easy-to-use calculator will help tax residents determine the amount of income taxes that they stand to pay this year based on income generated in the basis period of 1 January 2012 to 31 December 2012. This includes net employment income, assessable income as well as personal reliefs.
Commenting on the use of the calculator, Mr. Satish Bakhda, Head of Operations at Rikvin said, “The ability to estimate one’s potential personal income tax payments is an integral part of financial planning. This tool enables a Singapore tax resident to plan expenses or investments for the upcoming year after taking income tax considerations in mind.”
The ability to estimate one’s potential personal income tax payments is an integral part of financial planning. This tool enables a Singapore tax resident to plan expenses or investments for the upcoming year after taking income tax considerations in mind.
– Mr. Satish Bakhda
He added, “In Singapore, we are fortunate to enjoy a high standard of living as well as comparatively lower income tax rates vis-a-vis developed countries such as France, USA and Sweden. Even with inflation, lower income taxes often translates to higher purchasing power and this in turn benefits a variety of businesses. Access to a personal tax calculator ahead of tax season plays a role in this entire cycle and helps one also to plan one’s tax and spending strategy for the upcoming year.”
Analysis by Rikvin shows that the amount of income tax paid depends on one’s tax residency in Singapore. This means that an overseas Singaporean need not file Singapore income taxes.
According to KPMG’s 2012 Individual Income Tax and Social Security Rate Survey, Singapore’s personal income tax rates are well below the world average in 2012 i.e. 28.9%. Resident tax rates start at 0% for the first $20,000 of chargeable income and is capped at 20% for income exceeding S$320,000. Non-residents pay a different rate altogether, and are taxed at a flat rate of 15%.
On top of that, e-filing and installment payment options are available for all taxpayers who have a Singapore bank account. Another salient feature of Singapore’s personal income tax structure is the absence of a hefty exit tax for renouncing citizenship. Nevertheless, all taxes must be cleared before departure. There is also an option to withdraw all pension from the Central Provident Fund.
“One can see that Singapore’s personal tax structure is altogether uncomplicated. To mirror that, we have created a very simple tool to help our followers plan their tax strategy for the year. Please note however, that this tool is intended to be no more than a general overview of your tax position. You are encouraged to seek professional advice from qualified tax consultants before making any decisions,” added Mr. Bakhda.