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IRAS Singapore Income Tax Explained By Rikvin The income tax that is filed with and paid to IRAS is an annual obligation of all individuals earning more than S$22,000 in the previous calendar year. It is computed beginning January 1 to December 31 2010. April 15, 2011 is the deadline. Individuals who are obliged with such obligation include the foreigners or businessmen working for more than 183 days in Singapore using the Employment pass and Personalized Employment pass, and all foreign investors holding the Entrepreneur pass. Citizens and Permanent residents receiving more than S$22,000 from employment, vocation, businesses such as sole proprietorship, partnership, freelancer, hawker, commission agent, and taxi driver; and those who have profit-yielding investments like unit trust, fixed deposits, property, and shares.

“The taxes collected by the government are utilized for the betterment of Singapore in areas concerning the community, environment, and vibrant economy,” beams Rikvin’s business consultant, saying in addition that “the largest appropriation is 46% which is taken by Social Development, followed by 44% by Security& External Relations, and 6% by Economic Development, and finally, 4% by Administration.” Tax resident individuals—those mentioned above—enjoy progressive tax rates depending on the income accumulated. Non-resident individuals, who are Singaporean citizens working outside Singapore, are taxed on a standard rate of 15%.

“As individuals incur expenses concerning their profession, vocation, investments, and business, Singapore allows these expenses to be deducted from the taxable income,” quips Rikvin, “and so do the personal reliefs and donations made to qualified charities.” The personal reliefs that are deductible are fees paid for tuition fees or qualified course, relief for parent and support for dependents, premiums paid on life insurance policies, and professional development expenses. In addition, fringe benefits are taxed as soon as they are received.

“Employers shall fill-in the Form IRA8 specifying the remunerations and benefits-in-kind given to every employee,” chimes Rikvin. It continues: “These taxable benefits are overtime pay, refunds for medical and dental treatments given to dependents of income earner, accommodation and housing allowances, and all other allowances like Per Diem and for fixed monthly meal and monthly transportation.” Rikvin is a professional company offering assistance to companies and professionals in matters concerning their business, profession, and employment. When it comes to income tax, it can help prepare and file your income tax return according to your income, and determine the applicable deductions.

“We can also file a request for an extension of deadline if necessary,” chants Rikvin, “and advise you on how to save on your tax.” About the Publisher: Rikvin has successfully helped foreign and local entrepreneurs form a Singapore company. The company provides complete corporate solutions to investors and entrepreneurs both local and abroad. Among its specializations are Singapore company registration, income tax Singapore and providing professional services relating to financing and compliance services. Rikvin assures its clients of confidence in dealing with every transaction. Its employees maintain competence and above all, Rikvin’s principles adhere to business ethics and all applicable laws. Its goal is to provide a highly personalized and professional service worthy of our clients loyalty.

“Our phones are answered during business hours by specialists and not by an answering machine. We appreciate the value of your time and understand that a person cannot be replaced by technology. This is especially true when it comes to making important business decisions.” For more information, visit: Rikvin PTE LTD 20 Cecil Street, #14-01, Equity Plaza, Singapore 049705 Main Lines : (65) 6438 8887 Fax : (65) 6438 2436

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IRAS Singapore Income Tax Explained By Rikvin  

The income tax that is filed with and paid to IRAS is an annual obligation of all individuals earning more than S$22,000 in the previous cal...

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