Welcome Tea Tax Presentation[1]

Welcome Tea Presentation Tax Advisory Club   Cher Lin & Jason September 12, 2008

Introduction to Tax

Introduction to Tax •What are the government’s responsibility? •How does the government fund its expenditure? •Why is there a need to impose tax?

 

Introduction to Tax

Introduction to Tax •What is a tax? Compulsory levy imposed by the government to raise  revenue for government expenditure.

 

Direct Tax

Indirect Tax

• Income Tax

•GST •Betting Duty •Private lotteries duty •Stamp Duty •Motor Vehicle Taxes •Customs & Excise duties •Foreign worker levy

• Property Tax • Estate Duty

Introduction to Tax Singapore – Tax Policy

•What does the government hope to achieve through tax  policies? •Who implements such policies?

 

Introduction to Tax IRAS Tax collections FY06/07

Basic Tax Concepts

Taxation Systems United States

 

SINGAPORE

 

Singapore Income Tax System 1. Capital Gains not taxable -What is capital gains? 2. Singapore adopts the PRECEDING year of basis of  assessment. Year of assessment  is the year in which the taxes are  filed and it is for the income earned in the previous  period.  Eg. YA 2008 – Assessed on income earned from 1.1.07  to 31.12.07

Singapore Income Tax System Question For a company with year end of 30 June 2008, when it  files income tax for YA 2008, which period’s income is it  reporting? E)1st Jan 2007 – 31st Dec 2007 F)1st July 2006 – 30 June 2007 G)1st July 2007 – 30 June 2008

Singapore Income Tax System Individual Progressive Tax Rate

For YA 2007 Onwards:

Singapore Income Tax System Corporate Tax Rate

For YA 2008 Onwards:

“The income tax created more criminals than any other single act of government."  

Barry Goldwater

Exemptions • • § § §

Deductions •

Deductions ••

Deductions Source-by-source principle

••• § § § §

Capital Allowances

Capital Allowances ••

Capital Allowances •

Relief •• § §

Group Relief •

Group relief system claima nt

Group

ABC 100% DEF

transferor

Group relief system Transfer can be made if all of following requirements met: ••

Personal Relief •• • § § § § §