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 2018. He has a newborn child in 2018 and is eligible for Parenthood Tax Rebate of $5,000. His chargeable income for the Year of Assessment (YA) 2019 is computed as follows:

Total Employment Income in 2018

$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 (50% of tax payable, up to a cap of $200)$183.13

Less: Parenthood Tax Rebate (PTR)

$183.12

Net Tax Payable for YA 2019

$0

Mr Heng is entitled to PTR of $5,000 in respect of his first child born in 2018 which is used to offset his income tax payable for YA 2019. 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 2018, with earned income of $250,000. His chargeable income for YA 2019 is computed as follows:

Total Employment Income in 2018

$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 (50% of tax payable, up to a cap of $200)$200

Net Tax Payable for YA 2019

$27,429

Sample Calculation for Non-Tax Residents

Mr Gabriel, a Chile national, stayed and worked in Singapore from 1 Aug 2018 to 31 Oct 2018. He received a total salary of $21,000. His chargeable income for YA 2019 is computed as follows:

Total Employment Income in 2018

$ 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 2019

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

Ms Burch, an American, received Director's fee of $85,000 in 2018. Her chargeable income for YA 2019 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 2019

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

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