Taxation in Singapore

Download .pdf, .docx, .epub, .txt
Did you like this example?

Tax is source of income for the government and it is used for social benefit in a country. It helps the government develop the country and protect the country such as building roads, building, hospital or purchasing weapon, paying salary for police. It also helps everyone more equally between poor and rich group by providing social amenities. Income tax for individuals under for section 10(1) are gains or profits from any employment section [S10(1)b]; dividends, interest or discount [S10(1)d]; any pension, charge or annuity [S10(1)e]; rents, royalties, premiums and any other profits arising from property [S10(1)f]; any other gains or profits of an income nature [S10(2)g]. There are two type of individuals collected the income tax. They are the non-resident and resident. The presidents are Singapore’s citizens, Singapore Permanent Resident (SPR), foreigners who stayed or worked in Singapore 183 or more than 183 days in the year preceding the YA but excludes directors of a company. To calculate the tax of residents, taxation will take the total income less donations, expenses and tax relief (deductions). The tax rate will be from 0% to 20%. They can claim the donations, expenses and tax relief to save tax in Singapore. For example, Mr. Stephen has arrived from Vietnam to work in Singapore from the 1st January 2014 to 31th December 2014 with the income S$30,000 annual. Then he must pay tax for $30,000 same as a resident because he worked in Singapore for 365 days. The non-resident are foreigners who working in Singapore less than 183 days in a year preceding the YA. The non-resident can claim the donations and expenses to save tax in Singapore but they cannot claim tax relief like resident. However if a non-resident only work for 60 days or less in Singapore with short term employment will be not charged the employment income tax except adirector of a company, apublic entertaineror aprofessionalin Singapore. For example, Miss Sheila has arrived from China to work in Singapore to study in Singapore from 15th July to 31th December of year 2014 with the salary S$3,000 per month so her employment income will be exempted because she didn’t work more than 60days. In Singapore, companies must be collected the tax from government accrued in or derived from Singapore or outside because any gain or profit from any business, rental, share, property and anything that can get income (Applied from Singapore income taxation). Different with income, gain of the capital nature is not taxable in Singapore. Tax will be charged for companies when the companies have gains or profits from any trade, business, profession or vocation [S10(1)a]. Sometimes individuals can be considered to be trading in Singapore even they don’t open the business as a company. For example, when the people realize that properties will be increased in future then they will buy and resold quickly. Using “badges of trade’’ to consider when a person in trading. They are six badges of trade and they are subject matter of the realization, length of period ownership,

Do you want to see the Full Version?

View full version

Having doubts about how to write your paper correctly?

Our editors will help you fix any mistakes and get an A+!

Get started
Leave your email and we will send a sample to you.
Thank you!

We will send an essay sample to you in 2 Hours. If you need help faster you can always use our custom writing service.

Get help with my paper
Sorry, but copying text is forbidden on this website. You can leave an email and we will send it to you.