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 2019. He has a newborn child in 2019 and is eligible for Parenthood Tax Rebate of $5,000. His chargeable income for the Year of Assessment (YA) 2020 is computed as follows:
| Total Employment Income in 2019 | $50,000 |
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Less: Donations | $250 |
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Assessable Income | $49,750 |
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Less: Personal Reliefs | |
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- Earned Income Relief | $1,000 |
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- Qualifying Child Relief | $4,000 |
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- Employee CPF Contribution Relief | $10,000 |
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Chargeable Income
(Assessable Income less Personal Reliefs) | $34,750
($49,750 - $15,000) |
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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: Parenthood Tax Rebate (PTR) | $366.25 |
Net Tax Payable for YA 2020 | $0 |
Mr Heng is entitled to PTR of $5,000 in respect of his first child born in 2019 which is used to offset his income tax payable for YA 2020. The remaining amount ($5,000 - $366.25) will be used to offset his income tax payable in subsequent years until the rebate has been fully utilised.
Mr Fong was 64 years old in 2019, with earned income of $250,000. His chargeable income for YA 2020 is computed as follows:
| Total Employment Income in 2019 | $250,000 |
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Less: Donations | $250 |
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Assessable Income | $249,750 |
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Less: Personal Reliefs | |
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- Earned Income Relief | $8,000 |
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- Employee CPF Contribution Relief | $7,650 |
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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) |
Net Tax Payable for YA 2020 | $27,629 |
Sample Calculation for Non-Tax Residents
Mr Gabriel, a Chile national, stayed and worked in Singapore from 1 Aug 2019 to 31 Oct 2019. He received a total salary of $21,000. His chargeable income for YA 2020 is computed as follows:
| Total Employment Income in 2019 | $21,000 |
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Less: Employment Expenses | $0 |
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Assessable Income | $21,000 |
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Less: Personal Reliefs | N.A. |
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Chargeable Income
(Assessable Income less Personal Reliefs) | $21,000
($21,000 - $0) |
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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 2020 | $3,150 ($21,000 x 15%) |
Ms Burch, an American, received Director's fee of $85,000 in 2019. Her chargeable income for YA 2020 is computed as follows:
| Director's Fees | $85,000 |
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Less: Employment Expenses | $0 |
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Assessable Income | $85,000 |
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Less: Personal Reliefs | N.A. |
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Chargeable Income
(Assessable income less Personal Reliefs) | $85,000
($85,000 - $0) |
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Ms Burch's tax payable on her chargeable income of $85,000 is calculated as follows:
| Chargeable Income | $85,000 |
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Tax Rate for Non-Residents (Director's Fees) | 22% |
Net Tax Payable for YA 2020 | $18,700 ($85,000 x 22%) |