During this period of time, a Singapore website is ranked high in the search engines. Do you know which website? With the deadline for filing tax to be on 15 April, many people are flocking to IRAS to do their last minute e-file.
For a 15 - 16 years old teenager, he gets transformed into a tax officer (though a really entry level one) where he learns the basic in calculating the income tax.
Let's use the following question as an example,
Chargeable income = Gross annual income (inclusive other income streams like rental etc) minus reliefs
Mr Tan income is only from his work, so gross annual income
= 3250 x 12 = 39 000
=3000 + 2000 + 2000 x 2 + 7800 + 600 + 2/100 x 39 000
Chargeable Income = 39 000 - 18 180 = 20 820
We can refer to the table of tax rate to calculate the amount of income tax Mr Tan has to pay.
We choose the one circled in red:
First 20 000: $0
Next 820 (20 820 - 20 000): 3.5/100 x 820 = $28.70
I hope you find this post useful. Leave me your comment on Income Tax. Have you learnt the concept? Do you know it's under the topic of 'Everyday Math'?