Welcome Tea Presentation

Tax Advisory Club

 
Cher Lin & Jason
September 12, 2008
Introduction to Tax
Introduction to Tax

•What are the government’s responsibility?

•How does the government fund its expenditure?

•Why is there a need to impose tax?

 
Introduction to Tax
Introduction to Tax

•What is a tax?

Compulsory levy imposed by the government to raise 
revenue for government expenditure.

 
Direct Tax Indirect Tax

• Income Tax •GST

•Betting Duty
• Property Tax
•Private lotteries duty
• Estate Duty •Stamp Duty
•Motor Vehicle Taxes
•Customs & Excise duties
•Foreign worker levy
Introduction to Tax
Singapore – Tax Policy

•What does the government hope to achieve through tax 
policies?

•Who implements such policies?
 
Introduction to Tax
IRAS Tax collections FY06/07

$ ‘ Millions %

Total
Basic Tax Concepts
Taxation Systems

United States
 

SINGAPORE
 
Singapore Income Tax System

1. Capital Gains not taxable

-What is capital gains?

2. Singapore adopts the PRECEDING year of basis of 
assessment.

Year of assessment  is the year in which the taxes are 
filed and it is for the income earned in the previous 
period. 

Eg. YA 2008 – Assessed on income earned from 1.1.07 
to 31.12.07
Singapore Income Tax System

Question

For a company with year end of 30 June 2008, when it 
files income tax for YA 2008, which period’s income is it 
reporting?

•1st Jan 2007 – 31st Dec 2007
•1st July 2006 – 30 June 2007
•1st July 2007 – 30 June 2008
Singapore Income Tax System
Individual Progressive Tax Rate

For YA 2007 Onwards:

Chargeable Income Rate (%) Gross Tax Payable ($)
First $20,000 0 0
Next $10,000 3.50 350
First $30,000 - 350
Next $10,000 5.50 550
First $40,000 - 900
Next $40,000 8.50 3 400
First $80,000 - 4 300
Next $80,000 14 11 200
First $160,000 - 15 500
Next $160,000 17 27 200
First $320,000 - 42 700
Above $320,000 20
Singapore Income Tax System
Corporate Tax Rate

For YA 2008 Onwards:

Year of Tax Tax exemption / rebate

Assessment Rate
Partial tax exemption for companies

Exempt amount
“The income tax created more
criminals than any other single
act of government."
 
Barry Goldwater
 Exemptions
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 Deductions
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 Deductions
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 Deductions

Source-by-source principle
 Capital Allowances
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 Capital Allowances
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 Capital Allowances
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 Relief
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 Group Relief
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 Group relief system
claimant
Group

ABC

100%
DEF

transferor
 Group relief system
Transfer can be made if all of following
requirements met:
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 Personal Relief
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