Sample Income Tax Calculations

Examples of how to calculate income tax for tax residents and non-residents.

Sample Calculation for Tax Residents

Mr Heng is 35 years old, married, with a 10-month old son. He earned $50,000 in 2016. He has unutilised Parenthood Tax Rebate balance of $5,000 in his account. His chargeable income for the Year of Assessment (YA) 2017 is computed as follows:

Total Employment Income in 2016

$ 50,000

Less: Donations

$     250

Assessable Income

$ 49,750

Less: Personal Reliefs

 

- Earned Income Relief

$   1,000

- Qualifying Child Relief

$   4,000

- Employee CPF Contribution Relief

$  10,000

Chargeable Income
(Assessable Income less Personal Reliefs)

$34,750
($49,750 - $15,000)

Mr Heng's tax payable on his chargeable income of $34,750 is calculated as follows:

Chargeable Income

Tax Payable

Tax on first $30,000     

$200.00

Tax on next $ 4,750 @ 3.5%

$166.25

Gross Tax Payable

$366.25 ($200 + $166.25)

Less: Personal Income Tax Rebate (20% of tax payable, up to a cap of $500) $73.25

Less: Parenthood Tax Rebate (PTR)

$293

Net Tax Payable for YA 2017

$0 ($366.25 - $73.25 - $293)

Mr Heng is entitled to PTR of $5,000 in respect of his first child born in 2016. The unutilised amount of PTR is used to offset against his income tax payable for YA 2017. The remaining amount ($5,000 - $293) will be offset against his income tax payable in subsequent years until the rebate has been fully utilised.

Mr Fong was 64 years old in 2016, with earned income of $250,000. His chargeable income for YA 2017 is computed as follows:

Total Employment Income in 2015

$ 250,000

Less: Donations

$        250

Assessable Income

$ 249,750

Less: Personal Reliefs

 

- Earned Income Relief

$     8,000

- Employee CPF Contribution Relief

$     7,650

Chargeable Income
(Assessable Income less Personal Reliefs)

$234,100
($249,750 - $15,650)

Mr Fong's tax payable on his chargeable income of $234,100 is calculated as follows:

Chargeable Income

Tax Payable

Tax on first $200,000     

$21,150

Tax on next $34,100  @ 19%

$  6,479

Gross Tax Payable

$27,629 ($21,150 + $6,479)

Less: Personal Income Tax Rebate (20% of tax payable, up to a cap of $500) $500

Net Tax Payable for YA 2017

$27,129 ($27,629 - $500)

Sample Calculation for Non-Tax Residents

Mr Gabriel, a Chile national, stayed and worked in Singapore from 1 Aug 2016 to 31 Oct 2016. He received a total salary of $21,000. His chargeable income for YA 2017 is computed as follows:

Total Employment Income in 2016

$ 21,000

Less: Employment Expenses

$         0

Assessable Income

$  21,000

Less: Personal Reliefs

N.A.

Chargeable Income
(Assessable Income less Personal Reliefs)

$  21,000
($21,000 - $0)

Mr Gabriel's tax payable on his chargeable income of $21,000 is calculated as follows:

Chargeable Income

$21,000

Tax Rate for Non-Residents

15%

Net Tax Payable for YA 2017

$3,150 ($21,000 x 15%)

Ms Burch, an American, received Director's fee of $85,000 in 2016. Her chargeable income for YA 2017 is computed as follows:

Director's Fees

$ 85,000

Less: Employment Expenses

$          0

Assessable Income

$ 85,000

Less: Personal Reliefs

$          N.A.

Chargeable Income
(Assessable income less Personal Reliefs)

$85,000
($85,000 - $0)

Ms Burch's tax payable on her chargeable income of $85,000 is calculated as follows:

Chargeable Income

$85,000

Tax Rate for Non-Residents (Director's Fees)

22%

Net Tax Payable for YA 2017

$18,700 ($85,000 x 22%)

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