Financial Freedom SG

It's the time of the year again. When your tax collectors smiles and beckons you, and hit you in your pocket. Well, in Singapore, our government collects money from so many sources, the income tax rate is kept relatively low compared to countries like the US.

For YA 2007 onwards for Singapore Resident:

So how much of a tax do you need to pay? Say you earn $4000 over the year, you don't pay any tax at all. If you earn $40,000 for the year. The first $30,000 you pay $350 and the next $10,000 a higher tax rate of 5.5% is payable, so you pay another $550 for a grand total of (350+550=$900).

If all these doesn't make sense to you, you can download an excel file from the friendly IRAS website which will help you calculate how much you are going to get hit in the pocket.

What is taxable? The various categories of taxable and non-taxable are:
Also, you will need to study this VERY carefully:

• Expenses
  
• Donations & tax deductions
  
• Reliefs
  
• Parenthood tax rebate
• One-off personal tax rebate (for YA 2009)
• Highlights of Enhanced Marriage & Parenthood Tax Measures
  

The key to this year's return is to remember to look at the one off personal tax rebate which grants an income tax rebate of 20%, up to a maximum cap of $2,000, for Year of Assessment 2009 for ALL tax residents. But remember that this is set off before you claim your parenthood tax rebate.

The way to save money for income tax filing is to remember to claim whatever you are able to, be it parents, child, wife relief, NS man relief etc. So that in the end, you pay less tax than you would. Even if you take a course, you are eligible for relief if you satisfy the requirements. So please feel free to look into all the segments of relief highlighted for you in bold.

If you feel that you do not understand any of the segment, the friendly IRAS even has a very nice feedback form.

When is the deadline to file a return? 15 April 2009 by post, 18 April via the Internet.

I remember vaguely that when communist USSR fell, I saw snippets of news where the special forces was tasked to collect taxes :) And they actually use counter terrorist methods to storm strongholds in Russia to collect the taxes.

Here in Singapore, they use something very powerful too. A fine. My wife got one last year when she forgot to file a return. We still feel hurt from the fine. So, make sure you look through the reliefs carefully and file all the ones you are eligible for and save some money.

More money to save for your financial freedom.