Singapore Income Tax Tips & Tricks 1

Query: If I earn S$4000 how much should I put aside each month for taxes? Is there a basic untaxed allowance e.g. the first $2000 is tax free for example?

Tip: Here are relevant text extracts from the government website, plus the tax rates for resident individuals. As you can see from quote 1, most expats here for longer than 6 months will qualify for the rates listed in the table (i.e.
resident for tax purposes).
Quote 1: "You will be regarded as a tax resident for any Year of Assessment, if you were physically present or working (other than as director) in Singapore for 183 days or more during the 12 months prior to that year."
Quote 2: "As a tax resident, you will be taxed on all income derived in Singapore and any overseas income which is remitted, transmitted or
brought into Singapore. However, you will be entitled to the personal reliefs given under the Income Tax Act. Your income (less personal reliefs) will be taxed at the graduated rates of 2% to 28% from Year of Assessment 1997."
Website for tax rates for resident individuals: http://www.iras.gov.sg/info/taxrate.html

Tip: You will pay 7.55% on your first 50k (per year) of taxable income, so that will be about your rate. You'll be able to assume close to the $3,775 bill for a 50k income. You also get tax reliefs, which I asume are like deductions (I've only been here 9 months so havn't done this yet either). I assume the 3k personal relief is like the tax free threshold, ie, it comes off your gross income, in which case your tax will be a little lower. I'm no accountant, but you should be able to get a close estimate from the stuff below.
TAX RATES:
On the first $35000 -> $1,975.00
- 12% On the next $15000 -> $1,800.00
On the first $50000 -> $3,775.00

TAX RELIEFS (Deductons?)
Personal* $3,000
Earned Income* $1,000
Wife/Handicapped Spouse Relief $2,000/$3,500
Handicapped Siblings $3,500 each
Dependent Parents:
1) Living in the same household
2) Not living in the same household
$4,500
$3,500
Course fees $2,500 (maximum)
CPF Actual compulsory contributions
(You can call Iris at 1800-356 8311 for more details).