Monday, March 28, 2011

Have you done your taxes?

As I was doing my e-filing of tax (the deadline is on the 2nd week of April), I was pleasantly surprised by two changes. A picture, or in this case a table, represents a thousand words:

You can see that the % for each tier had been reduced for tax assessment year 2012. I noticed that there's more breakdown of the tax bracket between 40k to 160k too. The result would be less tax for everyone, but more so for the lower income bracket percentage-wise. This year, I paid lower taxes than the year before. Firstly, I earned less than the previous year. This is most likely due to the many interruptions that the wedding had forced upon me. The wedding I had last year coincided with my peak season, so the drop in income is understandable. The second reason is that there's this 20% 'ah-gong' discount to the tax returns. I'm not complaining, haha :)

The other pleasant addition is that at the end of the filing exercise, they actually gave me a estimated sum of how much my tax returns will be. I had always wondered about the amount since I had started paying tax, so this new addition is very welcomed by me. No more guessing and making my own spreadsheet to guesstimate the amount of tax due anymore.

I've no problems paying taxes. I think the more taxes I pay, the better. Singapore already had one of the lowest tax rates in the world. The tax is used for 'nation building', as the tax assessment form that they sent you yearly reminds you everytime, so I think it is for a good cause. Anyway, the more I earn, the more they tax, but the tax amount will never be more than the amount that I earn. I think it's fair as I'm enjoying the good stuff about being in Singapore. Tax away then :)


Drizzt said...

thanks for providing this info la pap. i am happy to pay less. the govt got enough from the casino, we should be burden with less.

AK71 said...

Vote PAP! More good years! :)

Isaac said...

sorry. no taxes for me. :P

Musicwhiz said...
This comment has been removed by the author.
Musicwhiz said...

Well of course I would rather pay less taxes any time! Haha for YA 2012 the rates are definitely so much better, but so far I have Parenthood Tax Rebate to offset my tax so I am tax-free for YA 2011 (at least I hope so if my calculations are right).

Then again, paying more tax simply means I am earning more, so that should put a smile on my face (yeah, dream on Musicwhiz).....


P.S. - Sorry LP wrong comment earlier, I amended FY 2012 to YA 2012 instead. I hate making such errors.

Sanye said...

IRAS has indeed made significant improvement. E-filing is so easy. I practically just logged in, confirmed the entries (all done for me) and logged out.

My wife did even need to e-file!

Way to go, outta boy! IRAS!

la papillion said...

HI Drizzt,

I guess you're right. There's a lot of taxes coming from the entrance fees to the casino. There's a high amt of taxes from properties transactions and the high COE too. I guess it's time to pass it down to us too :)

Hi AK,

Don't think I can vote even if I ward is almost always walk-over, haha!

Hi isaac,

Good to pick up the things first...I remembered that when I'm doing my taxes for the first time, I was so blur but had nobody to ask around. This is because nobody had the same job as I do, and being employed means a lot of such things are being done by the HR department for you.

la papillion said...

Hi mw,

Haha, the rates are really very good...I used the excel spreadsheet included in the IRAS website. I figured I can save around 300-400 off using the rates in YA2012. That's quite a sum :)

Hi sanye,

I agree. E-filing is really easy to do. I started out with forms and had such a difficult time trying to figure out what to fill in and reading the instructions too. Glad that it's computerised and made so easy online.

I guess as in all govt services, when it comes to collecting money, they are superbly efficient :)

PanzerGrenadier said...

IRAS can afford to lower income tax rates because GST is a wider source of indirect tax that hits all both low and high income earners because it is a flat rate.

Also Gahmen (MOF) abolished Estate Duties a few years back that affects only the very rich.

Our tax system actually benefits the rich and richer because there is no capital gains and estate duty, only higher tax rates for high income (capped at 20%) and maybe stamp duties and/or gains tax on properties sold within 1-xx years.

Thus, aspire to be rich as the tax burden ironically falls less on you as a proportion of your income! :-P

CreateWealth8888 said...

This GE, all can vote as oppositions are not using By-Election strategy anymore as it is not working.

Anonymous said...

More good years to the "PAPAYA" Peanuts to the "HOI POLLOI.
And I think in terms of least corrupted country, New Zealand ranked higher than us. Are their ministers also paid in the $millions? How come NZ is less corrupted than us with peanuts paid to their ministers? Are they not the same human beings? ???

la papillion said...

Hi PG,

Hmm, I never see it this way. Well, you're the professional, so I believe you!

Hi bro8888,

I dun get the by-election strategy bit. Pls explain?

Hi Temperament,

I didn't know NZ is ranked higher than us. Hmm, interesting result...I wonder how they actually come up with the figures to see who is least corrupted.

If a person is paid illegal, it is definitely corruption. I wonder if a person is paid legally in huge sums, does that also amount to corruption? Perhaps...white collar corruption, haha

Createwealth8888 said...

By-election = let PAP have enough walkovers to form the Govt on Nomination Day

Anonymous said...

If you earn 30k/yr you pay 150 less, down from 350, or 42% less (as if very big).
If you earn 200k/yr you pay 1550 less, down from 15500, or 10% less ("only").
Come on... what's 1550/yr if someone's earning >12k a month? Probably buy 1 less LV or skip a couple of fine dining. The rich have their options.