This is a tool that calculates the Singapore (SG) income tax and net income for the earned income, for a single person or married couple, over a specified tax year, and displays the results in a table. Optionally, it is possible to include mandatory savings contributions in the analysis. In which case, the results table also displays the calculated mandatory savings contributions, with the net income reflecting this extra deduction. In the case of a married couple, the displayed results show the total gross income, income tax and net income.
Additionally, if required, the tool displays more detailed results from the tax calculation:
- A results table is shown for the annual tax calculation, with a row for each relevant income: your own and your spouse's (if married). Each row shows the gross income, the tax relief applied, the mandatory savings contributions (if applicable), the taxable income, the calculated tax before any rebate has been replied, the tax rebate if relevant, and finally the calculated tax after any rebate.
- If mandatory savings contributions should be included in the comparison, a further results table is shown, displaying the Central Provident Fund (CPF) contributions for each relevant income: your own, your spouse's (if married) and the total (if married).
- Finally, a results table is given for each tax calculation, showing the tax band details (the range, taxable income, tax percentage rate and calculated tax for each band).
For the income tax calculations, it is necessary to supply the following compulsory information:
- Your gross earned income in monthly, weekly or annual terms.
- The tax year, noting that this runs from from January to December in the same calendar year.
- Your date of birth, in the default format (DD/MM/YYYY), unless you change the format in the menu. To reduce the time needed for data entry, a default date of birth is provided. Only if you are 50 or over during the tax year, and age related allowances come into consideration, is it essential to provide an accurate birth date.
- Your personal status, i.e. whether you are single or married.
- The number of dependent children. If this is greater than 0 and your personal status is single, the tool assumes that you are a single parent who provides sufficient support to the children to qualify for single parent allowances etc.
- Whether mandatory savings contributions should be included in the comparison or not. Since mandatory savings contributions are deductible from gross income when calculating tax, including these contributions automatically results in a decrease in taxable income.
If you are married, it is necessary to supply the following additional information:
- The gross earned income of your spouse in monthly, weekly or annual terms. If this field is left blank, the tool assumes that your spouse has no income.
- The date of birth of your spouse, in the default format (DD/MM/YYYY), unless you change the format in the menu. To reduce the time needed for data entry, a default date of birth is provided that can be used by most tax payers for calculating tax. Only if your spouse is 50 or over during the tax year, and age related allowances come into consideration, is it essential to provide an accurate birth date.
Various points to note concerning the Singapore tax calculations are:
- Separate assessment of earned income is assumed for a married couple in Singapore, as this is virtually always the case.
- The tool automatically includes certain tax deductions when determining the taxable income and thus calculating the income tax: various tax reliefs which depend on your personal status and the number of children you have, as well as the deduction for any mandatory savings contributions. Currently, it is not possible to specify any extra income tax deductions that should be taken into account.
- In more detail, the following tax reliefs are taken into consideration:
- Earned income relief.
- Qualifying child relief - given to the person with most income in a married couple.
- Spouse relief.
- The tax rebate on the calculated tax, mentioned above, is relevant for the tax years 2009 and 2011, and involves a one-off personal tax rebate of 20% up to a maximum of 2000SG$. In the 2010 tax year calculations, no such rebate is applied.
- Since it is not possible to distinguish between ordinary and additional (such as annual bonus) wages in this tool, the tool assumes that the earned income consists entirely of ordinary wages, and thus applies a maximum to the allowed monthly mandatory savings contributions of 5000SG$ in 2011 and 4500SG$ before.
The data used by this tool was obtained mainly from the following sources:
The data used by this tool for the SG mandatory savings contributions calculation was obtained primarily from the following sources:
Associated tool link: http://www.coggit.com/tools/sg_income_tax_earned.html