How Much Tax ???

[Christine]

Can someone please help me.  My husbands monthly salary is around S$17,000.00.  How much should I put aside for tax.  I have so far been told anything from 10 - 20% of his salary  Please advise if you have any advise.  Thank you.

[TaxMan]

I would advise a rate of about 26% for earnings of around S$200K per annum.  This is only an estimate and the final figure would be dependent on whether you had children or were allowed any specific deductions.  Needless to say, very few individuals or couples have tax affairs that are the same.  I'd recomend you find a good accountant in Singapore for more specfic advice.  Also, if your husband is a US citizen, he may still have a liability to US tax due to restrictions on foreign tax credits for income exceeding that excluded under statute.  Hope this is a little bit helpful.

[Caroline]

Last year on package of around S$195000 (with S$43000 out of that representing housing, S$18000 representing car and $134000 cash salary) total tax was S$31100

[Nayls]

Is housing allowance under a different tax regime or does it fall under income for tax purposes?  Also, how is bonus calculated in Singapore (my bonus is typically 50-80% of my remuneration)? Are there tax advantages to having a vehicle?  What are key deductions that I should keep an eye out for?
Thanks

[Christine]

Thank you everyone for your help.

Christine

[TaxMan]

Nayls,

As usual with tax we're getting into complex areas which cannot be properly dealt with on a site such as this.  However, I can tell you that taxabale employment income includes salaries, bonuses, allowances, perquisites and benefits-in-kind.  Certain benefits are treated at preferential rates.  For example, rent-free housing benefit (not cash housing) is normally calculated as the lesser of 10% of the assessable emoluments and the annual (rental) value of the property.  By concession, only 20% of home leave passage is assessed on the expat employee.  If in doubt, seek professional advice.  I'm sure there are reputable local firms if the cost of one of the "Big 5" firms is prohibitive.

[Casper]

can anyone recommend a good cheep accountant?

[Rob]

Casper...presumably you would expect a cheep accountant to work for birdseed

[TaxMan]

In my experience, most "Big 5" firms maintain a list of reputable independent firms for those folks who can't afford "Big 5" fees.  They are often ex-Big5 employees.  I'd suggest calling one of the big firms (PricewaterhouseCoopers, Arthur Andersen, KPMG, Ernst & Young, Deloitte & Touche), ask for a quote, tell them you can't afford it, then ask if they can refer you to a cheaper firm!!

[John]

You can work it out exactly from the Singapore Government web-site, it's not complicated. http://www.iras.gov.sg/  is the site, http://www.iras.gov.sg/TaxInfo/taxinfo_frame.htm  explains income tax

Income tax on $17k x 12 would be S$36,315 , w'out allowances, then less 5% rebate.

Hope that helps.