Tax computation and basic tax calculator

How to compute the tax payable?

 1.    For YA 2008 and YA 2009

See the following example:

Club DEF has chargeable income of $ 36,000 for the Year of Assessment (YA) 2009.
Tax payable by Club DEF for YA 2009 computed based on Part B rates is as follows:

Tax payable on first $35,000	$7,450
Tax on balance 1,000 @ 40%	400
Tax payable	$7,850

Effective rate of tax based on Part B rates (Y) $7,850/$36,000 = 21.8055%

Tax payable by Club DEF for YA 2009, if it were to be taxed as a company, is as follows:

Normal chargeable income (before deducting exempt amount)	$36,000
Less exempt amount (Note 1)	20,500
Normal chargeable income (after deducting exempt amount)	$15,500
Tax payable at 18%	$2,790

Effective company tax rate (Z) $2,790/$36,000 = 7.7500%

Tax computation of Club DEF for YA 2009

Chargeable income $36,000 Tax on $36,000 at 7.7500% (Note 2) = $2,790.

Note 1 - computation of exempt income for normal chargeable income

On the first $10,000, 75% of the income	$  7,500
On the next $26,000, 50% of the income	$13,000
Total exempt amount	$20,500

Note 2
As the effective rate of tax for Club DEF based on the Part B rates (Y) exceeds the effective rate of tax if it were to be taxed as a company (Z), the rate of tax applicable on the income of Club DEF is limited to the effective rate of tax of 7.7500%. Therefore, the tax payable by Club DEF for the YA 2009 is limited to $2,790 ($36,000 x 7.7500%), which is essentially the same as if it were to be taxed as a company.

2.    For YA 2010 onwards, the chargeable income of a body of persons will be taxed at the same tax rate structure as a company.

Basic tax calculator

The Basic tax calculator is designed to help you calculate the tax liability of the club/society/association.

To download Basic Tax Calculator, please click on the relevant YA.

YA 2009  (120KB)  (applicable for YA2008 and 2009)

YA 2010 (105KB)  (applicable for YA2010 onwards)