Year of Assessment (YA)
'Year of Assessment (YA)' refers to the tax year in which income tax is calculated and charged. Each YA begins on 1 Jan and ends on 31 Dec.
Example: YA 2012 refers to the tax period 1 Jan 2012 to 31 Dec 2012.
Basis period
'Basis period' refers to the period that the income is earned, for a particular YA. The basis period for a particular YA is always the previous year of that YA.
Example: The basis period for YA 2012 is 1 Jan 2011 to 31 Dec 2011.
This does not apply if you receive business income and the accounting period of your business does not end on 31 Dec each year.
Notice of Assessment (NOA)
'Notice of Assessment' refers to your tax bill. It shows the types of income and amount of income subject to tax, calculates the tax amount you need to pay and shows the deductions given, as well as the credit balance to be refunded to you.
Find out more about how to read your tax bill.
Assessable income
'Assessable income' is your total income less approved donations. The total income shown on your tax bill is the net amount after deducting your expenses claim, if any.
Example: 'Employment' income shown is the net amount after deducting your employment expenses. 'Property' income shown is the net rental income after deducting your rental expenses.
Personal reliefs
'Personal reliefs' are the deductions which help you to save tax. Find out more about reliefs.
Chargeable income
'Chargeable income' is your 'assessable income' less 'personal reliefs'.
A typical tax computation looks like this:
