Tax-deductible donations up by more than 24% in 2015
Posted 12 Aug 2016 13:08 Updated 12 Aug 2016 13:32
SINGAPORE: Tax-deductible donations rose by more than 24 per cent to S$1.4 billion in 2015, according to the annual report by the Office of the Commissioner of Charities (COC) released on Friday (Aug 12).
According to the report, the increase was largely spurred by the increase in tax deduction from 250 per cent to 300 per cent to encourage more charitable giving in celebration of Singapore’s Golden Jubilee.
"This substantial increase in donations can be attributed to the raising of the lifetime funding cap for each organisation under the Cultural Matching Fund, from S$10 million to S$15 million in 2015," Commisioner of Charities Low Puk Yeong said in the report.
The Office of the COC said that it will continue to work with all charities and partners to uphold good standards of governance and transparency.
Among this are the many new collaborations the charity council established with various agencies from the people and private sector in 2015 - all with the common goal to help strengthen governance standards and capabilities of our charities, Mr Low said.
"This included joint initiatives with the Institute of the Chartered Accountants, the Chartered Institute of Management Accountants, Chartered Secretaries Institute of Singapore, the Singapore Management University and the NUS Centre for Social Development Asia," he added.
Mr Low also cited the Charity transparency Framework (CTF) as a key initiative.
The CTF, which is a scorecard for charities to perform self-assessment, served to enhance disclosure and governance practices for charities, Mr Low said.
PROTECTING CHARITIES FROM TERRORIST FINANCING ABUSE
In a statement, the Office of the COC said that one of its key areas of focus in 2015 was to "sensitise charities to the risks of being used as a channel for terrorist financing".
To this end, a guide, "Protecting Your Charity Against Money Laundering and Terrorist Financing" was published in May 2015, the Office said.
Mr Low added: "Anecdotal evidence in recent years indicates that some charities are more vulnerable to exploitation for terrorism or terrorist financing ... My Office also held targeted engagement sessions with charities to raise their understanding of the safeguards and due diligence measures to protect them from such risks."
"Strong co-ordination networks are also established between my Office and the law enforcement and Intel agencies to facilitate information sharing and inter-agency collaboration."
The report also said charities with exemplary disclosures efforts will be recognised at the inaugural Charity Transparency Awards in Sep 2016.
- CNA/am
- wong chee tat :)
Showing posts with label tax. Show all posts
Showing posts with label tax. Show all posts
Monday, August 15, 2016
Sunday, July 24, 2016
Tax policies can drive innovation, promote inclusive growth: DPM Tharman
Tax policies can drive innovation, promote inclusive growth: DPM Tharman
By Faris Mokhtar Posted 24 Jul 2016 20:01 Updated 24 Jul 2016 20:34
SINGAPORE: Tax policies can be designed to help countries drive innovation and at the same time promote inclusive growth, said Deputy Prime Minister Tharman Shanmugaratnam at a conference held on Saturday (Jul 23) on the sidelines of a G20 meeting in Chengdu, China.
Mr Tharman, who is also Coordinating Minister for Economic and Social Policies, said growing the incomes of low-wage workers should be a key priority when countries come up with tax and fiscal policies to promote inclusive economic growth.
"It's not just an economic priority, but a broader, strategic priority: including everyone in the formal labour market and giving them a real chance to improve their skills and incomes, (as well as) to feel they can earn their own success."
To achieve this, Mr Tharman noted that some countries have put in place policies such as negative income taxes for low-wage workers. He added that this not only promotes equity, but does so in a growth-friendly way.
Mr Tharman also said countries can tap on property taxes, which is the least damaging to income growth. This is an approach that Singapore has adopted; for instance, by putting in place taxes on property transactions, such as stamp duties.
This is to distinguish properties purchased for people to own and live in from those that are bought for investment.
Mr Tharman stressed that property taxes are a better way to collect tax than income taxes.
"(There is) less harm to growth and (property taxes) are more likely to promote an economic culture conducive to innovation and entrepreneurship," he said.
Mr Tharman said that part of a country's fiscal policies should include giving fair subsidies for public service and this should be targeted at those who need it the most. He pointed out that in many countries, most of the subsidies do not go to the poor.
This happens when governments subsidise healthcare for everyone, rather than based on needs. As such, taxes will rise to support spending.
Mr Tharman said such an approach is not sustainable. He emphasised that giving fair and targeted subsidies would not just ensure social equity, but also help countries to have sustainable fiscal budgets.
- CNA/hs
- wong chee tat :)
By Faris Mokhtar Posted 24 Jul 2016 20:01 Updated 24 Jul 2016 20:34
SINGAPORE: Tax policies can be designed to help countries drive innovation and at the same time promote inclusive growth, said Deputy Prime Minister Tharman Shanmugaratnam at a conference held on Saturday (Jul 23) on the sidelines of a G20 meeting in Chengdu, China.
Mr Tharman, who is also Coordinating Minister for Economic and Social Policies, said growing the incomes of low-wage workers should be a key priority when countries come up with tax and fiscal policies to promote inclusive economic growth.
"It's not just an economic priority, but a broader, strategic priority: including everyone in the formal labour market and giving them a real chance to improve their skills and incomes, (as well as) to feel they can earn their own success."
To achieve this, Mr Tharman noted that some countries have put in place policies such as negative income taxes for low-wage workers. He added that this not only promotes equity, but does so in a growth-friendly way.
Mr Tharman also said countries can tap on property taxes, which is the least damaging to income growth. This is an approach that Singapore has adopted; for instance, by putting in place taxes on property transactions, such as stamp duties.
This is to distinguish properties purchased for people to own and live in from those that are bought for investment.
Mr Tharman stressed that property taxes are a better way to collect tax than income taxes.
"(There is) less harm to growth and (property taxes) are more likely to promote an economic culture conducive to innovation and entrepreneurship," he said.
Mr Tharman said that part of a country's fiscal policies should include giving fair subsidies for public service and this should be targeted at those who need it the most. He pointed out that in many countries, most of the subsidies do not go to the poor.
This happens when governments subsidise healthcare for everyone, rather than based on needs. As such, taxes will rise to support spending.
Mr Tharman said such an approach is not sustainable. He emphasised that giving fair and targeted subsidies would not just ensure social equity, but also help countries to have sustainable fiscal budgets.
- CNA/hs
- wong chee tat :)
Thursday, June 30, 2016
Businesses to enjoy 250% tax deduction on wages if employees volunteer at IPCs
Businesses to enjoy 250% tax deduction on wages if employees volunteer at IPCs
Posted 30 Jun 2016 15:37 Updated 30 Jun 2016 16:04
SINGAPORE: From Jul 1 this year to the end of 2018, some businesses in Singapore will enjoy up to 250 per cent tax deduction on wages and related expenses, the Ministry of Finance (MOF), Inland Revenue Authority of Singapore (IRAS) and Ministry of Culture, Community and Youth (MCCY) said in a joint press release on Thursday (Jun 30).
The tax deduction applies to companies that send employees to volunteer and provide services, including secondments, to Institutions of a Public Character (IPCs) under the Business and IPC Partnership Scheme (BIPS), subject to receiving IPCs’ agreements, the authorities said.
The services include professional services such as in the areas of legal, human resources and accounting, or general voluntary services for IPCs, they added.
IPCs are registered charities that are allowed to issue tax-deductible receipts to donors who want to claim tax relief based on the amount of qualifying donations made. These charities must serve the needs of the community in Singapore as a whole, and not be confined to sectional interests or groups based on race, belief or religion, according to MCCY's website.
Currently, donors to IPCs already enjoy tax relief for 250 per cent of the donations.
BIPS was introduced in Budget 2016 to encourage employee volunteerism through businesses, and forms part of the Government’s efforts to promote philanthropy and volunteerism.
When he announced the scheme on Mar 24, Finance Minister Heng Swee Keat said it would boost corporate social responsibility (CSR) and make it easier for employees to give back through their workplaces.
In their press release on Thursday, the authorities said: "Through volunteering activities or secondments, businesses and IPCs can build enduring and sustained partnerships, benefiting both parties ... In the long run, the Government hopes to foster a widespread culture of caring in Singapore, where businesses and employees can play a greater role in meeting social needs and building a caring and cohesive society."
The scheme comes with some caveats, however. For example, the donation of goods and wages of the owners of sole proprietorships, partnerships and companies do not qualify for the tax deductions. The companies must also not have applied for other incentive schemes for the same services, and there is a cap of S$250,000 per year of assessment and S$50,000 per calendar year for the expenditure of each business and IPC respectively.
The guidelines and FAQs for IPCs interested in participating in BIPS can be found on the MOF and Charity Portal websites, and more information for businesses can be found on the IRAS website.
- CNA/mz
- wong chee tat :)
Posted 30 Jun 2016 15:37 Updated 30 Jun 2016 16:04
SINGAPORE: From Jul 1 this year to the end of 2018, some businesses in Singapore will enjoy up to 250 per cent tax deduction on wages and related expenses, the Ministry of Finance (MOF), Inland Revenue Authority of Singapore (IRAS) and Ministry of Culture, Community and Youth (MCCY) said in a joint press release on Thursday (Jun 30).
The tax deduction applies to companies that send employees to volunteer and provide services, including secondments, to Institutions of a Public Character (IPCs) under the Business and IPC Partnership Scheme (BIPS), subject to receiving IPCs’ agreements, the authorities said.
The services include professional services such as in the areas of legal, human resources and accounting, or general voluntary services for IPCs, they added.
IPCs are registered charities that are allowed to issue tax-deductible receipts to donors who want to claim tax relief based on the amount of qualifying donations made. These charities must serve the needs of the community in Singapore as a whole, and not be confined to sectional interests or groups based on race, belief or religion, according to MCCY's website.
Currently, donors to IPCs already enjoy tax relief for 250 per cent of the donations.
BIPS was introduced in Budget 2016 to encourage employee volunteerism through businesses, and forms part of the Government’s efforts to promote philanthropy and volunteerism.
When he announced the scheme on Mar 24, Finance Minister Heng Swee Keat said it would boost corporate social responsibility (CSR) and make it easier for employees to give back through their workplaces.
In their press release on Thursday, the authorities said: "Through volunteering activities or secondments, businesses and IPCs can build enduring and sustained partnerships, benefiting both parties ... In the long run, the Government hopes to foster a widespread culture of caring in Singapore, where businesses and employees can play a greater role in meeting social needs and building a caring and cohesive society."
The scheme comes with some caveats, however. For example, the donation of goods and wages of the owners of sole proprietorships, partnerships and companies do not qualify for the tax deductions. The companies must also not have applied for other incentive schemes for the same services, and there is a cap of S$250,000 per year of assessment and S$50,000 per calendar year for the expenditure of each business and IPC respectively.
The guidelines and FAQs for IPCs interested in participating in BIPS can be found on the MOF and Charity Portal websites, and more information for businesses can be found on the IRAS website.
- CNA/mz
- wong chee tat :)
Thursday, June 16, 2016
Singapore joins tax framework led by OECD and G20
Singapore joins tax framework led by OECD and G20
Under the new tax framework, Singapore will implement minimum standards aimed at preventing "aggressive tax planning" by multinationals.
By Nicole Tan
Posted 16 Jun 2016 19:41
SINGAPORE: Locally headquartered multinationals will soon have to file reports broken down by country as well as income and taxes to the Inland Revenue Authority of Singapore (IRAS).
In a statement on Thursday (Jun 16), the Ministry of Finance announced that Singapore is joining the tax framework led by the Organisation for Economic Co-operation and Development (OECD) and G20.
The OECD Base Erosion and Profit Shifting (BEPS) Action Plan was initiated in 2013. Under the framework, Singapore will implement minimum standards aimed at preventing "aggressive tax planning" by multinationals. The framework also includes setting standards on countering harmful tax practices, preventing treaty abuse, transfer pricing documentation, and enhancing dispute resolution.
This supports the principle that companies are taxed in the country where the economic activity takes place.
Multinational firms with a group turnover of more than S$1.125 billion and whose parent firms are in Singapore will have to report financials and economic activity to the tax authority on a country-by-country basis, for financial years starting in 2017.
IRAS will consult Singapore-headquartered multinationals further on the implementation details of country-by-country reporting (CbCR), and release details by September 2016.
NOT MANY WOULD BE AFFECTED: PwC
Tax consultants estimate that less than 100 firms will be affected. Still, advocating such tax principles can help raise the city-state's competitiveness.
"There won't be a large number of companies affected,” said Ms Nicole Fung, transfer pricing leader at PricewaterhouseCoopers Singapore. “Our estimate: It'll be less than 100. And these companies are not just in Singapore. They're global companies and they play in the international space. And so in terms of additional costs, I don't think there will be additional cost because even if Singapore doesn't have these requirements, they would have to comply with other jurisdictions that have these requirements.
“We actually end up being more competitive when we're adhering to it, because global companies just want to run their business. They don't really want to have issues regarding their tax.
"So they would want to be located in a country where the country embraces these principles, is respected, part of the international community where these principles are concerned, so that at the end of the day, the company or the group is not tainted just by virtue of the fact that it has operations in Singapore," Ms Fung said.
- CNA/ek
- wong chee tat :)
Under the new tax framework, Singapore will implement minimum standards aimed at preventing "aggressive tax planning" by multinationals.
By Nicole Tan
Posted 16 Jun 2016 19:41
SINGAPORE: Locally headquartered multinationals will soon have to file reports broken down by country as well as income and taxes to the Inland Revenue Authority of Singapore (IRAS).
In a statement on Thursday (Jun 16), the Ministry of Finance announced that Singapore is joining the tax framework led by the Organisation for Economic Co-operation and Development (OECD) and G20.
The OECD Base Erosion and Profit Shifting (BEPS) Action Plan was initiated in 2013. Under the framework, Singapore will implement minimum standards aimed at preventing "aggressive tax planning" by multinationals. The framework also includes setting standards on countering harmful tax practices, preventing treaty abuse, transfer pricing documentation, and enhancing dispute resolution.
This supports the principle that companies are taxed in the country where the economic activity takes place.
Multinational firms with a group turnover of more than S$1.125 billion and whose parent firms are in Singapore will have to report financials and economic activity to the tax authority on a country-by-country basis, for financial years starting in 2017.
IRAS will consult Singapore-headquartered multinationals further on the implementation details of country-by-country reporting (CbCR), and release details by September 2016.
NOT MANY WOULD BE AFFECTED: PwC
Tax consultants estimate that less than 100 firms will be affected. Still, advocating such tax principles can help raise the city-state's competitiveness.
"There won't be a large number of companies affected,” said Ms Nicole Fung, transfer pricing leader at PricewaterhouseCoopers Singapore. “Our estimate: It'll be less than 100. And these companies are not just in Singapore. They're global companies and they play in the international space. And so in terms of additional costs, I don't think there will be additional cost because even if Singapore doesn't have these requirements, they would have to comply with other jurisdictions that have these requirements.
“We actually end up being more competitive when we're adhering to it, because global companies just want to run their business. They don't really want to have issues regarding their tax.
"So they would want to be located in a country where the country embraces these principles, is respected, part of the international community where these principles are concerned, so that at the end of the day, the company or the group is not tainted just by virtue of the fact that it has operations in Singapore," Ms Fung said.
- CNA/ek
- wong chee tat :)
Thursday, March 24, 2016
Budget 2016: New initiatives to encourage Singaporeans to give back to community
Budget 2016: New initiatives to encourage Singaporeans to give back to community
From tax deductions to a new fund to catalyse ground-up projects, Budget 2016 introduces initiatives to encourage Singaporeans to help those in need.
Posted 24 Mar 2016 17:18
SINGAPORE: To encourage Singaporeans and businesses to give back to the community, Budget 2016 will introduce measures that encourage people to step forward and make it easier for employees to contribute through their workplaces, Finance Minister Heng Swee Keat announced on Thursday (Mar 24).
Currently, businesses receive a tax deduction of 250 per cent for donations of cash and in-kind donations such as computers to certain Institutions of a Public Character (IPCs).
To encourage employee volunteerism, a pilot Business and IPC Partnership scheme will be introduced. From Jul 1 this year until the end of 2018, companies that organise their employees to volunteer and provide services to IPCs, including secondments, will also receive a 250 per cent tax deduction on costs incurred.
This deduction requires the receiving IPC’s agreement, and is subject to a yearly cap of S$250,000 per business and S$50,000 per IPC, Mr Heng said.
The Community Chest’s monthly donation programme SHARE will also get a boost, with dollar-for-dollar matching from the Government for any additional donations over and above the FY2015 level. This will be done for the next three years, starting in April this year, Mr Heng said.
“Where businesses allow their staff to donate regularly, we will allow part of the matching funds to be used by them to organise corporate social responsibility activities,” he added.
COMMUNITY NETWORKS FOR SENIORS
A pilot initiative called the Community Networks for Seniors will be launched, comprising local stakeholders such as Voluntary Welfare Organisations, community volunteers, schools and businesses.
At its core, the network will have a small team of full-time officers, who will study the health and social needs of seniors and draw stakeholders together to provide coordinated support, Mr Heng said.
“We hope to help seniors discover health conditions earlier and manage them well, while connecting those who are healthy and mobile to a wide range of activities to encourage them to stay active, healthy and engaged in the community,” he said.
Seniors who require more help, such as frail elderly living alone, will get more targeted and coordinated health and social support under the networks.
CATALYSING GROUND-UP INITIATIVES
According to Mr Heng, the SG50 Celebration Fund – set up to support ground-up community projects in celebration of Singapore’s Jubilee year – received good response and supported close to 400 projects.
To continue supporting such initiatives, a new S$25 million Our Singapore Fund will be set up by the second half of this year.
“It is Our Singapore Fund because it is about how we all can come together in partnership to share our strengths, share our loves, create something more and better together, to build our Singapore together,” Mr Heng said.
The fund will support projects that build the spirit of caring and resilience, nurture our can-do spirit, and promote unity and our sense of being Singaporean, he added.
“This is the spirit of the society that we are building. It is one where we rise above our circumstances, to build a better life for ourselves and our children. It is a society that cares for those in need, and where those who are helped do their part to help others. It is a society that we are all proud to be a part of,” he said.
- CNA/cy
- wong chee tat :)
From tax deductions to a new fund to catalyse ground-up projects, Budget 2016 introduces initiatives to encourage Singaporeans to help those in need.
Posted 24 Mar 2016 17:18
SINGAPORE: To encourage Singaporeans and businesses to give back to the community, Budget 2016 will introduce measures that encourage people to step forward and make it easier for employees to contribute through their workplaces, Finance Minister Heng Swee Keat announced on Thursday (Mar 24).
Currently, businesses receive a tax deduction of 250 per cent for donations of cash and in-kind donations such as computers to certain Institutions of a Public Character (IPCs).
To encourage employee volunteerism, a pilot Business and IPC Partnership scheme will be introduced. From Jul 1 this year until the end of 2018, companies that organise their employees to volunteer and provide services to IPCs, including secondments, will also receive a 250 per cent tax deduction on costs incurred.
This deduction requires the receiving IPC’s agreement, and is subject to a yearly cap of S$250,000 per business and S$50,000 per IPC, Mr Heng said.
The Community Chest’s monthly donation programme SHARE will also get a boost, with dollar-for-dollar matching from the Government for any additional donations over and above the FY2015 level. This will be done for the next three years, starting in April this year, Mr Heng said.
“Where businesses allow their staff to donate regularly, we will allow part of the matching funds to be used by them to organise corporate social responsibility activities,” he added.
COMMUNITY NETWORKS FOR SENIORS
A pilot initiative called the Community Networks for Seniors will be launched, comprising local stakeholders such as Voluntary Welfare Organisations, community volunteers, schools and businesses.
At its core, the network will have a small team of full-time officers, who will study the health and social needs of seniors and draw stakeholders together to provide coordinated support, Mr Heng said.
“We hope to help seniors discover health conditions earlier and manage them well, while connecting those who are healthy and mobile to a wide range of activities to encourage them to stay active, healthy and engaged in the community,” he said.
Seniors who require more help, such as frail elderly living alone, will get more targeted and coordinated health and social support under the networks.
CATALYSING GROUND-UP INITIATIVES
According to Mr Heng, the SG50 Celebration Fund – set up to support ground-up community projects in celebration of Singapore’s Jubilee year – received good response and supported close to 400 projects.
To continue supporting such initiatives, a new S$25 million Our Singapore Fund will be set up by the second half of this year.
“It is Our Singapore Fund because it is about how we all can come together in partnership to share our strengths, share our loves, create something more and better together, to build our Singapore together,” Mr Heng said.
The fund will support projects that build the spirit of caring and resilience, nurture our can-do spirit, and promote unity and our sense of being Singaporean, he added.
“This is the spirit of the society that we are building. It is one where we rise above our circumstances, to build a better life for ourselves and our children. It is a society that cares for those in need, and where those who are helped do their part to help others. It is a society that we are all proud to be a part of,” he said.
- CNA/cy
- wong chee tat :)
Wednesday, March 16, 2016
Bloggers taken by surprise by IRAS letter on taxable income
Bloggers taken by surprise by IRAS letter on taxable income
938LIVE reports: The memo received by bloggers states that all non-monetary benefits “may be taxable and must be declared”. One blogger said it was the first time she received such a letter.
By Lee Gim Siong, 938LIVE and Justin Ong
Posted 15 Mar 2016 22:07 Updated 15 Mar 2016 22:56
SINGAPORE: Some members of Singapore’s blogging community have expressed surprise at a letter they have received from the Inland Revenue Authority of Singapore (IRAS) clarifying income components - including products or services received via their websites - which need to be declared as part of their annual Income Tax Return.
938LIVE has seen pictures of the letter in question. The memo states that all non-monetary benefits, including sponsorship of products or services received in return for writing or reviewing the sponsors’ products “may be taxable and must be declared”.
Prominent blogger Wendy Cheng, or Xiaxue, told 938LIVE this is the first time she has received such a letter from IRAS.
Ms Cheng said while she is aware that income generated from her website is subjected to tax, it is “difficult” to declare certain benefits-in-kind.
“If someone sends me a lipstick, am I supposed to go find out how much it costs and declare it? Other things like, for example, some fans give me something that’s handmade, how do I put a value on that?”
“Either that or I have to send it back to the company, but that’s very nasty. It’s like saying: 'I don’t like your product'; so it doesn’t make sense to me,” she added.
The IRAS letter sent to bloggers
Kenneth Lee, who blogs on www.5meanders.com wrote: “I think it’s sad, and a little funny, that we’ve come to a point in our country’s storied existence when a channel of expression is taxable.”
Local blogger Alvin Lim, who owns alvinology.com and asia361.com, told Channel NewsAsia the move by IRAS seemed “stringent and rather extreme”.
“If this is really true, it will kill the whole blogging scene. Who will go for food tastings now? IRAS also has to be fair to bloggers - most of us are one-man shows with no resources to do these things,” he said, adding that he presently files taxes under a registered company.
Mr Lim also noted that it would be “double standards” if the same were not applied to media companies. “Do journalists file taxes for media gifts, food tastings, family trips or media junkets?” he asked.
938LIVE understands that IRAS sent the letter as part of its regular engagement with the self-employed and is not meant to target or clamp down on bloggers.
Social media marketing firm Gushcloud said it is aware that the letter has been sent to bloggers under its management, adding that it regularly holds workshops and 1-on-1 meetings to answer their questions on the filing of their taxes.
A food blogger who declined to be identified said he has always been aware of the need to declare the benefits he received through his blog.
More information on what bloggers need to declare can be found here.
- 938LIVE/ek
- wong chee tat :)
938LIVE reports: The memo received by bloggers states that all non-monetary benefits “may be taxable and must be declared”. One blogger said it was the first time she received such a letter.
By Lee Gim Siong, 938LIVE and Justin Ong
Posted 15 Mar 2016 22:07 Updated 15 Mar 2016 22:56
SINGAPORE: Some members of Singapore’s blogging community have expressed surprise at a letter they have received from the Inland Revenue Authority of Singapore (IRAS) clarifying income components - including products or services received via their websites - which need to be declared as part of their annual Income Tax Return.
938LIVE has seen pictures of the letter in question. The memo states that all non-monetary benefits, including sponsorship of products or services received in return for writing or reviewing the sponsors’ products “may be taxable and must be declared”.
Prominent blogger Wendy Cheng, or Xiaxue, told 938LIVE this is the first time she has received such a letter from IRAS.
Ms Cheng said while she is aware that income generated from her website is subjected to tax, it is “difficult” to declare certain benefits-in-kind.
“If someone sends me a lipstick, am I supposed to go find out how much it costs and declare it? Other things like, for example, some fans give me something that’s handmade, how do I put a value on that?”
“Either that or I have to send it back to the company, but that’s very nasty. It’s like saying: 'I don’t like your product'; so it doesn’t make sense to me,” she added.
The IRAS letter sent to bloggers
Kenneth Lee, who blogs on www.5meanders.com wrote: “I think it’s sad, and a little funny, that we’ve come to a point in our country’s storied existence when a channel of expression is taxable.”
Local blogger Alvin Lim, who owns alvinology.com and asia361.com, told Channel NewsAsia the move by IRAS seemed “stringent and rather extreme”.
“If this is really true, it will kill the whole blogging scene. Who will go for food tastings now? IRAS also has to be fair to bloggers - most of us are one-man shows with no resources to do these things,” he said, adding that he presently files taxes under a registered company.
Mr Lim also noted that it would be “double standards” if the same were not applied to media companies. “Do journalists file taxes for media gifts, food tastings, family trips or media junkets?” he asked.
938LIVE understands that IRAS sent the letter as part of its regular engagement with the self-employed and is not meant to target or clamp down on bloggers.
Social media marketing firm Gushcloud said it is aware that the letter has been sent to bloggers under its management, adding that it regularly holds workshops and 1-on-1 meetings to answer their questions on the filing of their taxes.
A food blogger who declined to be identified said he has always been aware of the need to declare the benefits he received through his blog.
More information on what bloggers need to declare can be found here.
- 938LIVE/ek
- wong chee tat :)
Monday, November 30, 2015
Lower Property Tax in 2016
Lower Property Tax in 2016
- wong chee tat :)
30 Nov 2015
With Annual Values of HDB and private residential properties reduced in line with market rentals, 93% of residential property owners will pay lower property tax.
All HDB flat owners will pay lower or no property tax next year while 8 in 10 private residential property owners will pay lower property tax in 2016. In particular, all 1- and 2-room HDB flat owner-occupiers and 28,200 3-room HDB flat owner-occupiers will not have to pay any property tax when the revised annual values take effect from 1 Jan 2016.
The tax savings for HDB flats will range from 9% to 24%, compared to property tax paid in 2015. Of the private residential properties with reduced annual values, more than 80% will see tax savings of between 3% and 20%.
Lower Property Tax in 2016 for Owner-Occupied HDB Flats
| HDB Flat Type | 2016 Property Tax Payable | 2015 Property Tax Payable | Savings in 20161 |
|---|---|---|---|
| 3-Room Flat | $0 - $37.60 | $1.60 - $49.60 | $1.60-$12.00 (At least 24%) |
| 4-Room Flat | $71.20 - $119.20 | $85.60 - $133.60 | $14.40 (At least 11%) |
| 5-Room Flat | $104.80 - $152.80 | $121.60 - $169.60 | $16.80 (At least 10%) |
| Executive Flat2 | $116.80 - $164.80 | $133.60 - $181.60 | $16.80 (At least 9%) |
The Inland Revenue Authority of Singapore (IRAS) reviews the Annual Values (AVs) of properties annually to ensure that they reflect prevailing market rentals. Property tax is a tax on property ownership and it is payable on all properties regardless whether the property is rented out, owner-occupied, or left vacant. Property tax is computed on AVs, by multiplying the AV of the property with the relevant set of progressive property tax rates for residential properties. The concessionary ‘Owner-Occupier Residential Tax Rates’ is applied on owner-occupied residential properties while the ‘Residential Tax Rates’ is applied on non-owner-occupied properties (Refer to Annex 1).
Simplified e-Service to Check Property Tax Payable New!
Property owners can use a new e-Service - ‘e-Property Tax Balance’ – to check if there is any tax payable on their properties and whether the current payment mode is by GIRO. Property owners simply enter the property tax reference number or property address and the NRIC of any of the owners to find out the property tax payable.
Pay Your 2016 Property Tax by 31 Jan 2016
Property tax has to be paid by 31 Jan 2016. IRAS encourages property owners to join GIRO to enjoy up to 12 interest-free monthly instalments or opt for a one-time deduction. Taxpayers who have bank accounts with DBS/POSB, UOB or OCBC can apply for GIRO via Internet Banking and receive instant approval.
A 5% penalty will be imposed on property owners who fail to pay or have not arranged to pay their tax by 31 Jan 2016. Property owners facing financial difficulties are advised to contact IRAS at 1800-356 8300 before the due date to discuss a suitable payment plan.
For more information and answers to frequently asked questions, please visit www.iras.gov.sg> Property> Property Owners> 2016 Property Tax Bills.
1Tax Savings and Property Tax Payable are calculated based on owner-occupied HDB flats.
2This does not include Executive Condominiums.
Inland Revenue Authority of Singapore
- wong chee tat :)
Monday, December 8, 2014
Reduction in property tax for those in bigger HDB flats
Reduction in property tax for those in bigger HDB flats
HDB residents will enjoy tax savings of between S$42 and S$54 for 2015 compared to two years ago, while owners of one- or two-room HDB flats will not have to pay any property tax at all.
SINGAPORE: For a second year in a row, HDB households will see reduced property taxes, the Inland Revenue Authority of Singapore (IRAS) said on Monday (Dec 8).
- wong chee tat :)
HDB residents will enjoy tax savings of between S$42 and S$54 for 2015 compared to two years ago, while owners of one- or two-room HDB flats will not have to pay any property tax at all.
SINGAPORE: For a second year in a row, HDB households will see reduced property taxes, the Inland Revenue Authority of Singapore (IRAS) said on Monday (Dec 8).
The reduced property taxes kick in from Jan 1, 2015, and HDB residents will enjoy tax savings of between S$42 and S$54 for the year, compared to two years ago, IRAS said in a news release.
IRAS said next year, the Annual Values (AVs) or estimated annual rent of a property, will be lowered by about 3 per cent to reflect the dip in market rentals. Property tax payable on HDB flats is calculated by applying property tax rates on AVs.
Owners residing in three-, four-, five-room flats and executive flats will enjoy property tax savings of S$12 to S$14 due to the fall in AVs.
All owner-occupiers of one- and two-room HDB flats will continue to pay no property tax in 2015.
All owner-occupiers of one- and two-room HDB flats will continue to pay no property tax in 2015.
IRAS said property tax rates have been made more progressive since this year. Owner-occupiers of HDB flats paid less property tax compared to 2013, as the first tier of tax-exempt AV was raised from S$6,000 to S$8,000.
HDB flat owners will receive their property tax notices and bills by the end of this month and the tax has to be paid up by Jan 31, 2015. Those who flout the rule, or who have not arranged to pay their tax by then, will incur a 5 per cent penalty.
- CNA/ly
- wong chee tat :)
Friday, February 28, 2014
1.23m taxpayers need not file taxes
1.23m taxpayers need not file taxes
POSTED: 28 Feb 2014 16:43
SINGAPORE: More taxpayers, including 15,000 who will be filing for the first time, will benefit from the no-filing service this year, the Inland Revenue Authority of Singapore (IRAS) said.
The tax filing season begins on Saturday, but for 1.23 million, or 60 per cent of all taxpayers, it will be a non-event.
The IRAS said the no-filing service has grown significantly over the years to benefit 27 times as many taxpayers this year, as compared to when it was first launched in 2007.
Taxpayers who have been informed of their eligibility for the service this year will not need to file a tax return, unless they have additional income to declare or changes to make to their personal reliefs.
- CNA/xq
- wong chee tat :)
POSTED: 28 Feb 2014 16:43
SINGAPORE: More taxpayers, including 15,000 who will be filing for the first time, will benefit from the no-filing service this year, the Inland Revenue Authority of Singapore (IRAS) said.
The tax filing season begins on Saturday, but for 1.23 million, or 60 per cent of all taxpayers, it will be a non-event.
The IRAS said the no-filing service has grown significantly over the years to benefit 27 times as many taxpayers this year, as compared to when it was first launched in 2007.
Taxpayers who have been informed of their eligibility for the service this year will not need to file a tax return, unless they have additional income to declare or changes to make to their personal reliefs.
- CNA/xq
- wong chee tat :)
Monday, December 23, 2013
Swiss banks sign up to reveal hidden accounts as US deadline looms
Swiss banks sign up to reveal hidden accounts as US deadline looms
POSTED: 22 Dec 2013 14:38
Swiss banks are scrambling ahead of a December 31 deadline to decide whether to join a US programme aimed at zooming in on lenders that helped Americans dodge taxes.
GENEVA: Swiss banks are scrambling ahead of a December 31 deadline to decide whether to join a US programme aimed at zooming in on lenders that helped Americans dodge taxes.
Around 40 of Switzerland's some 300 banks have already said publicly they will take part in a US programme set up to allow Swiss financial institutions to avoid US prosecution in exchange for coming clean and possibly paying steep fines.
"What are the others going to do? That is the very big question," Swiss business lawyer Douglas Hornung told AFP.
Washington alleges that Swiss banks have helped US citizens hide billions of dollars in assets from tax authorities, in a row that has soured relations between the two in recent years.
The two countries reached a deal in August aimed at ending the dispute, piercing a significant hole in the tradition of secrecy upon which the Swiss banking industry was built.
The banks have until the end of the year to decide whether to fess up to potential wrong-doing and hand over their files to US authorities, and thereby shield themselves from legal action, or take their chances outside the programme.
Picking the wrong option could saddle a bank with crippling fines, fees or a US indictment.
Banks that opened undeclared accounts for US clients -- especially the ones that actively wooed such clients -- definitely should join the programme, experts say.
Washington in 2009 fined Switzerland's biggest bank, UBS, $780 million for complicity in tax evasion.
"If one of the 10 to 15 banks the US Department of Justice already has in its files does not show up..., you can be sure there will be a BOOM in January," Hornung said.
Earlier this year, Switzerland's one-time oldest bank Wegelin & Co. discovered the price of not coming clean to US authorities when given the chance. Founded in 1741, the bank was pushed out of business after being slapped with a $74-million fine for helping wealthy clients avoid at least $20 million in taxes.
Fourteen banks, including Switzerland's second-biggest bank, Credit Suisse, are already officially under US investigation and will have no chance to skirt legal action.
The other banks can however opt in to the programme by determining which of the three remaining categories they belong in.
Most so far are signing up for category two and thereby acknowledging they may well have had US clients with undeclared accounts.
"More banks have said they will go for category two than would be expected," said Walter Boss, a tax lawyer with Poledna Boss Kurer AG in Zurich.
"Category three, reserved for banks that aim to prove their innocence, "won't be crowded, it looks like," he said.
Especially surprising perhaps is that a large majority of the publicly backed cantonal banks have opted for category two. These banks which are regionally based and have long insisted they never went after US clients.
Small banks could be forced out of business
All the banks rushing to the confession booth have not necessarily committed any misdeeds though, experts say.
A number of banks insist they have only had a few US clients and have never done anything to encourage tax evasion, but have chosen to initially join category two for fear that a single tax-dodging American, even unbeknownst to them, could land them in legal qualms.
"I think the fears in Switzerland are too big when it comes to the United States," said Peter Viktor Kunz, a business law professor at Bern University.
"I really hope that common sense prevails in the end," he said.
Switzerland's third-largest bank, Reiffeisen, and private bank Vontobel have for instance said they will opt for category three or four, reserved for local banks with no US clients at all, which should show some of the smaller banks with few US clients that the self-flagellating is unnecessary, Kunz said.
Banks in category two will face penalties equivalent to between 20 and 50 per cent of the value of undeclared accounts, depending on when they were opened, not to mention towering legal and translation fees.
"Many of the smaller banks simply will not be able to afford this," Hornung said, cautioning that a number of banks might go belly-up.
He urged banks that had done nothing wrong to opt out of the programme altogether, insisting that Washington was not interested in hunting down the minnows in the pond.
Regardless of how many banks decide to sign up by the December 31 deadline, observers warned that the programme was unlikely to provide much immediate relief to a Swiss banking sector desperate to shake off the uncertainty that has been dogging it throughout the dispute with Washington.
Confusion over how the US programme will be implemented means "the uncertainty is still there for many," Kunz said, adding: "So no happy new year for them."
- AFP/fa
- wong chee tat :)
POSTED: 22 Dec 2013 14:38
Swiss banks are scrambling ahead of a December 31 deadline to decide whether to join a US programme aimed at zooming in on lenders that helped Americans dodge taxes.
GENEVA: Swiss banks are scrambling ahead of a December 31 deadline to decide whether to join a US programme aimed at zooming in on lenders that helped Americans dodge taxes.
Around 40 of Switzerland's some 300 banks have already said publicly they will take part in a US programme set up to allow Swiss financial institutions to avoid US prosecution in exchange for coming clean and possibly paying steep fines.
"What are the others going to do? That is the very big question," Swiss business lawyer Douglas Hornung told AFP.
Washington alleges that Swiss banks have helped US citizens hide billions of dollars in assets from tax authorities, in a row that has soured relations between the two in recent years.
The two countries reached a deal in August aimed at ending the dispute, piercing a significant hole in the tradition of secrecy upon which the Swiss banking industry was built.
The banks have until the end of the year to decide whether to fess up to potential wrong-doing and hand over their files to US authorities, and thereby shield themselves from legal action, or take their chances outside the programme.
Picking the wrong option could saddle a bank with crippling fines, fees or a US indictment.
Banks that opened undeclared accounts for US clients -- especially the ones that actively wooed such clients -- definitely should join the programme, experts say.
Washington in 2009 fined Switzerland's biggest bank, UBS, $780 million for complicity in tax evasion.
"If one of the 10 to 15 banks the US Department of Justice already has in its files does not show up..., you can be sure there will be a BOOM in January," Hornung said.
Earlier this year, Switzerland's one-time oldest bank Wegelin & Co. discovered the price of not coming clean to US authorities when given the chance. Founded in 1741, the bank was pushed out of business after being slapped with a $74-million fine for helping wealthy clients avoid at least $20 million in taxes.
Fourteen banks, including Switzerland's second-biggest bank, Credit Suisse, are already officially under US investigation and will have no chance to skirt legal action.
The other banks can however opt in to the programme by determining which of the three remaining categories they belong in.
Most so far are signing up for category two and thereby acknowledging they may well have had US clients with undeclared accounts.
"More banks have said they will go for category two than would be expected," said Walter Boss, a tax lawyer with Poledna Boss Kurer AG in Zurich.
"Category three, reserved for banks that aim to prove their innocence, "won't be crowded, it looks like," he said.
Especially surprising perhaps is that a large majority of the publicly backed cantonal banks have opted for category two. These banks which are regionally based and have long insisted they never went after US clients.
Small banks could be forced out of business
All the banks rushing to the confession booth have not necessarily committed any misdeeds though, experts say.
A number of banks insist they have only had a few US clients and have never done anything to encourage tax evasion, but have chosen to initially join category two for fear that a single tax-dodging American, even unbeknownst to them, could land them in legal qualms.
"I think the fears in Switzerland are too big when it comes to the United States," said Peter Viktor Kunz, a business law professor at Bern University.
"I really hope that common sense prevails in the end," he said.
Switzerland's third-largest bank, Reiffeisen, and private bank Vontobel have for instance said they will opt for category three or four, reserved for local banks with no US clients at all, which should show some of the smaller banks with few US clients that the self-flagellating is unnecessary, Kunz said.
Banks in category two will face penalties equivalent to between 20 and 50 per cent of the value of undeclared accounts, depending on when they were opened, not to mention towering legal and translation fees.
"Many of the smaller banks simply will not be able to afford this," Hornung said, cautioning that a number of banks might go belly-up.
He urged banks that had done nothing wrong to opt out of the programme altogether, insisting that Washington was not interested in hunting down the minnows in the pond.
Regardless of how many banks decide to sign up by the December 31 deadline, observers warned that the programme was unlikely to provide much immediate relief to a Swiss banking sector desperate to shake off the uncertainty that has been dogging it throughout the dispute with Washington.
Confusion over how the US programme will be implemented means "the uncertainty is still there for many," Kunz said, adding: "So no happy new year for them."
- AFP/fa
- wong chee tat :)
Tuesday, August 20, 2013
IRAS warns of scam email
IRAS warns of scam email
POSTED: 20 Aug 2013 5:41 PM
The IRAS has warned of a scam email with the subject title "IRAS Reward".
SINGAPORE: The IRAS has warned of a scam email with the subject title "IRAS Reward".
The scam email asks recipients to click on an attached link to fill in a form on a website to claim cash rewards, says the Inland Revenue Authority of Singapore (IRAS).
Members of the public should not respond to the email, click on its hyperlink or provide their particulars. The email and the website are scams, says IRAS.
The IRAS has made a police report and is investigating the matter.
Anyone who has received a suspicious email, letter, SMS or phone call purportedly from IRAS should immediately contact IRAS at iras@iras.gov.sg or call 1800 356 8225 to verify the authenticity of such a request.
- CNA/ir
- wong chee tat :)
POSTED: 20 Aug 2013 5:41 PM
The IRAS has warned of a scam email with the subject title "IRAS Reward".
SINGAPORE: The IRAS has warned of a scam email with the subject title "IRAS Reward".
The scam email asks recipients to click on an attached link to fill in a form on a website to claim cash rewards, says the Inland Revenue Authority of Singapore (IRAS).
Members of the public should not respond to the email, click on its hyperlink or provide their particulars. The email and the website are scams, says IRAS.
The IRAS has made a police report and is investigating the matter.
Anyone who has received a suspicious email, letter, SMS or phone call purportedly from IRAS should immediately contact IRAS at iras@iras.gov.sg or call 1800 356 8225 to verify the authenticity of such a request.
- CNA/ir
- wong chee tat :)
Saturday, April 20, 2013
Tax filing rate hits record 95%
Tax filing rate hits record 95%
POSTED: 19 Apr 2013 7:00 PM
The Inland Revenue Authority of Singapore said about 900,000 taxpayers e-filed their returns by 18 April.
SINGAPORE: The filing rate for tax season 2013 has hit a record of 95 per cent.
The Inland Revenue Authority of Singapore (IRAS) said about 900,000 taxpayers e-filed their returns by 18 April.
This includes 27,000 taxpayers who filed paper returns and 1.13 million taxpayers who were on the No-Filing Service this year.
Last year, the tax filing rate was 94 per cent.
IRAS added that more taxpayers will benefit from the Auto-Inclusion Scheme (AIS).
Currently, there are 1.3 million employees on AIS and IRAS expects the number to go up to 1.4 million by 2015.
- CNA/ck
- wong chee tat :)
POSTED: 19 Apr 2013 7:00 PM
The Inland Revenue Authority of Singapore said about 900,000 taxpayers e-filed their returns by 18 April.
SINGAPORE: The filing rate for tax season 2013 has hit a record of 95 per cent.
The Inland Revenue Authority of Singapore (IRAS) said about 900,000 taxpayers e-filed their returns by 18 April.
This includes 27,000 taxpayers who filed paper returns and 1.13 million taxpayers who were on the No-Filing Service this year.
Last year, the tax filing rate was 94 per cent.
IRAS added that more taxpayers will benefit from the Auto-Inclusion Scheme (AIS).
Currently, there are 1.3 million employees on AIS and IRAS expects the number to go up to 1.4 million by 2015.
- CNA/ck
- wong chee tat :)
Monday, March 11, 2013
More gifts in kind may get tax deductions
More gifts in kind may get tax deductions
SINGAPORE : The government is looking at expanding the qualifying list for tax deduction of donations in kind.
Currently certain gifts in kind, including computers, shares, land, buildings, and works of art, already qualify for tax deductions.
But Minister of State for Finance Josephine Teo said there is scope to expand this list to include services, so as to support more of such contributions.
The Finance Ministry, together with the Culture, Community and Youth Ministry, will study how it is done in other countries.
They will also work with community partners to "develop a sensible way to value non—standard gifts".
Nominated MP Laurence Lien said: "I think you can do more to foster generosity by encouraging giving of all kinds, tax deduction for a wider list of gifts in kind. Many companies have new products that they are willing to give away to charity. This is particularly since Singapore is home to many MNCs with export—import functions.
"Currently the 250 per cent tax reduction is given for only a very limited number of products. Why computers and not other products?"
Alvin Yeo, MP for Chua Chu Kang GRC, said: "Donations in kind, apart from a very limited category, as enumerated by Mr Laurence Lien, or in the form of services, do not attract any relief at all. Do we want to force private entities to go through circuitous means to obtain tax relief that their good work merits?
"Would charities attract more donations if these could be rendered in—kind or in the form of services, and treated the same in terms of tax relief?"
Mrs Teo replied: "Given the very wide range of possible gifts, we will have to find an appropriate and not overly cumbersome way for the valuation of gifts. This is not to make things difficult or circuitous as Mr Alvin Yeo described it for potential donors, but to ensure a sense of fairness and equitability."
She said about S$3 million in computer donations and S$18 million in arts and artefacts received tax deductions from 2005 to 2011.
— CNA/ms
SINGAPORE : The government is looking at expanding the qualifying list for tax deduction of donations in kind.
Currently certain gifts in kind, including computers, shares, land, buildings, and works of art, already qualify for tax deductions.
But Minister of State for Finance Josephine Teo said there is scope to expand this list to include services, so as to support more of such contributions.
The Finance Ministry, together with the Culture, Community and Youth Ministry, will study how it is done in other countries.
They will also work with community partners to "develop a sensible way to value non—standard gifts".
Nominated MP Laurence Lien said: "I think you can do more to foster generosity by encouraging giving of all kinds, tax deduction for a wider list of gifts in kind. Many companies have new products that they are willing to give away to charity. This is particularly since Singapore is home to many MNCs with export—import functions.
"Currently the 250 per cent tax reduction is given for only a very limited number of products. Why computers and not other products?"
Alvin Yeo, MP for Chua Chu Kang GRC, said: "Donations in kind, apart from a very limited category, as enumerated by Mr Laurence Lien, or in the form of services, do not attract any relief at all. Do we want to force private entities to go through circuitous means to obtain tax relief that their good work merits?
"Would charities attract more donations if these could be rendered in—kind or in the form of services, and treated the same in terms of tax relief?"
Mrs Teo replied: "Given the very wide range of possible gifts, we will have to find an appropriate and not overly cumbersome way for the valuation of gifts. This is not to make things difficult or circuitous as Mr Alvin Yeo described it for potential donors, but to ensure a sense of fairness and equitability."
She said about S$3 million in computer donations and S$18 million in arts and artefacts received tax deductions from 2005 to 2011.
— CNA/ms
Sunday, March 3, 2013
Only 2 in 5 taxpayers need to file tax
Only 2 in 5 taxpayers need to file tax
Posted: 01 March 2013 1606 hrs
SINGAPORE: The annual tax filing season starts Friday, but only two in five taxpayers need to do so.
The Inland Revenue Authority of Singapore (IRAS) says more than 1.13 million, or nearly 60 per cent of the 1.92 million taxpayer base are eligible for the No-Filing Service (NFS).
First introduced in 2007 to 45,000 taxpayers, the NFS has grown in scale to benefit 25 times as many taxpayers this year.
Taxpayers who have been informed by IRAS of their eligibility for NFS this year will not need to file a tax return, unless they have additional income to declare or changes to make to their personal reliefs.
The remaining 40 per cent of taxpayers who are not on NFS would have received a letter or SMS notification informing them to file via myTax.iras.gov.sg by 18 April.
These taxpayers will have to file a tax return this year, even if their employers have sent their salary details to IRAS under the Auto-Inclusion of Employment Income Scheme.
In his 2013 Budget Speech, Deputy prime Minister and Finance Minister Tharman Shanmugaratnam has announced that all individuals who are tax resident in Singapore will enjoy a personal income tax rebate for Year of Assessment (YA) 2013.
But they do not need to apply for the personal income tax rebate.
IRAS will automatically grant the rebate to all eligible taxpayers and reflect the amount in their tax bill.
The amount of personal income tax rebate will depend on the person's age as at 31 December 2012 - those aged below 60 will get a tax rebate of 30 per cent while those aged 60 and above enjoy a tax rebate of 50 per cent - both capped at S$1,500.
- CNA/ck
- wong chee tat :)
Posted: 01 March 2013 1606 hrs
SINGAPORE: The annual tax filing season starts Friday, but only two in five taxpayers need to do so.
The Inland Revenue Authority of Singapore (IRAS) says more than 1.13 million, or nearly 60 per cent of the 1.92 million taxpayer base are eligible for the No-Filing Service (NFS).
First introduced in 2007 to 45,000 taxpayers, the NFS has grown in scale to benefit 25 times as many taxpayers this year.
Taxpayers who have been informed by IRAS of their eligibility for NFS this year will not need to file a tax return, unless they have additional income to declare or changes to make to their personal reliefs.
The remaining 40 per cent of taxpayers who are not on NFS would have received a letter or SMS notification informing them to file via myTax.iras.gov.sg by 18 April.
These taxpayers will have to file a tax return this year, even if their employers have sent their salary details to IRAS under the Auto-Inclusion of Employment Income Scheme.
In his 2013 Budget Speech, Deputy prime Minister and Finance Minister Tharman Shanmugaratnam has announced that all individuals who are tax resident in Singapore will enjoy a personal income tax rebate for Year of Assessment (YA) 2013.
But they do not need to apply for the personal income tax rebate.
IRAS will automatically grant the rebate to all eligible taxpayers and reflect the amount in their tax bill.
The amount of personal income tax rebate will depend on the person's age as at 31 December 2012 - those aged below 60 will get a tax rebate of 30 per cent while those aged 60 and above enjoy a tax rebate of 50 per cent - both capped at S$1,500.
- CNA/ck
- wong chee tat :)
Tuesday, February 26, 2013
Progressive property tax rates unlikely to dampen investor sentiment: analysts
Progressive property tax rates unlikely to dampen investor sentiment: analysts
By Millet Enriquez | Posted: 25 February 2013 2322 hrs
SINGAPORE: The new set of progressive tax rates introduced in Budget 2013 will see high-end property owners paying more in property taxes.
While the tax bill may be higher for the rich in percentage terms, analysts say this may not dampen investor sentiment to buy luxury properties.
From January 2014, properties with higher annual values will be taxed at higher rates.
With a tax rate of between zero and 15 per cent, there will be a significant gap in the property tax bill between mass and higher-end homes.
Still, analysts said most high-end home owners will just take this in stride.
Nicholas Mak, executive director of research and consultancy at SLP International, explained: "The increase may seem substantial. It can range anywhere from 20 per cent to 70 per cent in some cases. But if we look at it in absolute quantum, in thousands of dollars, the increase is only a few thousands of dollars. And I think if the person is able to spend a few million dollars on a high-end luxury property, I believe they can well afford this increase in property tax."
Experts said this latest move is not an extension of property cooling measures.
While this could make some buyers rethink their plans, experts said such prime luxury properties will continue to remain attractive.
Chua Yang Liang, head of research and consultancy at Jones Lang LaSalle, said: "By and large, I don't think you will see a major shift because the high-end market, they are established neighbourhoods. The likes of (Districts) 9, 10 and 11 still command certain premium. It may see some downside risk, but I don't think it will see a large impact."
Alan Lau, a corporate tax partner at KPMG, said: "If you compare Singapore against Hong Kong, these are two very similar countries with similarly high residential property prices that the respective governments are trying very hard to cool down. So I think even after this latest round of property tax increases for non-owner occupied residential properties, we do not think that it will actually put Singapore in an inferior position compared to Hong Kong."
Analysts said the new progressive tax rates could have marginal impact on yield and may see some corporates and high-end investors looking to commercial and suburban properties as alternatives.
Overall, they said the government's move to cut foreign workers is the one that will soften demand for mass market property and rents.
- CNA/fa
- wong chee tat :)
By Millet Enriquez | Posted: 25 February 2013 2322 hrs
SINGAPORE: The new set of progressive tax rates introduced in Budget 2013 will see high-end property owners paying more in property taxes.
While the tax bill may be higher for the rich in percentage terms, analysts say this may not dampen investor sentiment to buy luxury properties.
From January 2014, properties with higher annual values will be taxed at higher rates.
With a tax rate of between zero and 15 per cent, there will be a significant gap in the property tax bill between mass and higher-end homes.
Still, analysts said most high-end home owners will just take this in stride.
Nicholas Mak, executive director of research and consultancy at SLP International, explained: "The increase may seem substantial. It can range anywhere from 20 per cent to 70 per cent in some cases. But if we look at it in absolute quantum, in thousands of dollars, the increase is only a few thousands of dollars. And I think if the person is able to spend a few million dollars on a high-end luxury property, I believe they can well afford this increase in property tax."
Experts said this latest move is not an extension of property cooling measures.
While this could make some buyers rethink their plans, experts said such prime luxury properties will continue to remain attractive.
Chua Yang Liang, head of research and consultancy at Jones Lang LaSalle, said: "By and large, I don't think you will see a major shift because the high-end market, they are established neighbourhoods. The likes of (Districts) 9, 10 and 11 still command certain premium. It may see some downside risk, but I don't think it will see a large impact."
Alan Lau, a corporate tax partner at KPMG, said: "If you compare Singapore against Hong Kong, these are two very similar countries with similarly high residential property prices that the respective governments are trying very hard to cool down. So I think even after this latest round of property tax increases for non-owner occupied residential properties, we do not think that it will actually put Singapore in an inferior position compared to Hong Kong."
Analysts said the new progressive tax rates could have marginal impact on yield and may see some corporates and high-end investors looking to commercial and suburban properties as alternatives.
Overall, they said the government's move to cut foreign workers is the one that will soften demand for mass market property and rents.
- CNA/fa
- wong chee tat :)
Monday, February 25, 2013
Budget 2013: More progressive tax structure for properties and cars
Budget 2013: More progressive tax structure for properties and cars
By Hetty Musfirah | Posted: 25 February 2013 1723 hrs
SINGAPORE: A more progressive tax structure will be introduced for properties and cars to achieve greater social equity without hurting Singapore's competitiveness.
The zero per cent property tax rate band, which currently applies to the first S$6,000 of annual value of properties will be widened to S$8,000.
Currently, property tax rates for owner-occupied residential property are at zero per cent, four per cent and six per cent, depending on the annual values of the properties.
In addition to the current four per cent and six per cent tax bands, the government will introduce new bands of eight per cent to 16 per cent.
Deputy Prime Minister Tharman Shanmugaratnam, who announced these changes in his Budget Statement on Monday, said 950,000 owner-occupied residential properties will be able to enjoy some tax savings.
High-end investment properties will also see significant increases in tax rates.
Instead of the current rate of 10 per cent flat, they will be increased to between 12 per cent and 20 per cent.
As for passenger cars and taxis, there will be a new tiered Additional Registration Fee (ARF) structure.
The ARF for car models with an Open Market Value of more than S$20,000 of vehicle's open market value will be 140 per cent.
Any value beyond S$50,000 will attract an ARF rate of 180 per cent.
The changes will apply to vehicles registered with Certificates of Entitlement obtained from the first bidding exercise in March 2013.
- CNA/fa
- wong chee tat :)
By Hetty Musfirah | Posted: 25 February 2013 1723 hrs
SINGAPORE: A more progressive tax structure will be introduced for properties and cars to achieve greater social equity without hurting Singapore's competitiveness.
The zero per cent property tax rate band, which currently applies to the first S$6,000 of annual value of properties will be widened to S$8,000.
Currently, property tax rates for owner-occupied residential property are at zero per cent, four per cent and six per cent, depending on the annual values of the properties.
In addition to the current four per cent and six per cent tax bands, the government will introduce new bands of eight per cent to 16 per cent.
Deputy Prime Minister Tharman Shanmugaratnam, who announced these changes in his Budget Statement on Monday, said 950,000 owner-occupied residential properties will be able to enjoy some tax savings.
High-end investment properties will also see significant increases in tax rates.
Instead of the current rate of 10 per cent flat, they will be increased to between 12 per cent and 20 per cent.
As for passenger cars and taxis, there will be a new tiered Additional Registration Fee (ARF) structure.
The ARF for car models with an Open Market Value of more than S$20,000 of vehicle's open market value will be 140 per cent.
Any value beyond S$50,000 will attract an ARF rate of 180 per cent.
The changes will apply to vehicles registered with Certificates of Entitlement obtained from the first bidding exercise in March 2013.
- CNA/fa
- wong chee tat :)
Monday, January 21, 2013
More than S$8.3b disbursed in tax rebates to encourage procreation
More than S$8.3b disbursed in tax rebates to encourage procreation
By Imelda Saad | Posted: 20 January 2013 1802 hrs
SINGAPORE: The government last year gave out more than S$8.3 billion in tax rebates and reliefs aimed at encouraging procreation in the Year of Assessment 2012.
The Inland Revenue Authority of Singapore also told Channel NewsAsia that more than 850,000 working mums and dads enjoyed such tax breaks in 2012.
Thirty-six-year-old assistant marketing manager Lum Sook Fong collected nearly S$27,000 in child tax reliefs last year.
Together with other rebates, the working mother of two ended up not paying any taxes to the government at all.
Madam Lum said: "I know there should be some kind of relief but exactly what amount, I didn't know until I get the statement, so I was kind of surprised because the amount is quite substantial."
Currently, there are three kinds of rebate and reliefs aimed at supporting working mums with children.
They are: Parenthood Tax Rebate of up to S$20,000 per child; the Qualifying/Handicapped Child Reliefs; and the Working Mother Child Relief.
Both the Parenthood Tax Rebate and the Qualifying/Handicapped Child Relief can be claimed by both mums and dads.
Sums worked out by tax consultant Ernst & Young show that working mums earning about S$94,500 to S$351,000 a year don't have to pay any taxes after taking into account the Parenthood Tax Rebate, the Working Mother Child Relief, and other tax breaks like the Foreign Maid Levy Relief.
This applies to a Singaporean tax payer aged 55 and below, married, with three children.
There are various monetary incentives to support families, including cash gifts like the Baby Bonus.
Those Channel NewsAsia spoke to say while such incentives can ease the financial burden of bringing up baby, money isn't everything.
It may encourage those who already have children to have more but it may not change the minds of couples who don't want any children in the first place.
Joni Ong, president of advocacy group I Love Children said: "I agree that money is useful but money isn't everything. I believe if you love children and you want to have children to complete your family, no matter how much money is there or not there, you will proceed to have the babies anyway."
Experts said what is needed is a supportive environment at home and at work, among other things.
"For my case, I would think it would be useful as well if the Baby Bonus is higher because what we have, could only tied us for the first few years. After that, I have to start paying cash for their childcare," said Madam Lum.
She added: "Another part is also the family support like maybe having grandparents to be there to take care of the kids. As a working mum, I would say that the environment is very important and also the work-life balance that we have."
- CNA/fa
- wong chee tat :)
By Imelda Saad | Posted: 20 January 2013 1802 hrs
SINGAPORE: The government last year gave out more than S$8.3 billion in tax rebates and reliefs aimed at encouraging procreation in the Year of Assessment 2012.
The Inland Revenue Authority of Singapore also told Channel NewsAsia that more than 850,000 working mums and dads enjoyed such tax breaks in 2012.
Thirty-six-year-old assistant marketing manager Lum Sook Fong collected nearly S$27,000 in child tax reliefs last year.
Together with other rebates, the working mother of two ended up not paying any taxes to the government at all.
Madam Lum said: "I know there should be some kind of relief but exactly what amount, I didn't know until I get the statement, so I was kind of surprised because the amount is quite substantial."
Currently, there are three kinds of rebate and reliefs aimed at supporting working mums with children.
They are: Parenthood Tax Rebate of up to S$20,000 per child; the Qualifying/Handicapped Child Reliefs; and the Working Mother Child Relief.
Both the Parenthood Tax Rebate and the Qualifying/Handicapped Child Relief can be claimed by both mums and dads.
Sums worked out by tax consultant Ernst & Young show that working mums earning about S$94,500 to S$351,000 a year don't have to pay any taxes after taking into account the Parenthood Tax Rebate, the Working Mother Child Relief, and other tax breaks like the Foreign Maid Levy Relief.
This applies to a Singaporean tax payer aged 55 and below, married, with three children.
There are various monetary incentives to support families, including cash gifts like the Baby Bonus.
Those Channel NewsAsia spoke to say while such incentives can ease the financial burden of bringing up baby, money isn't everything.
It may encourage those who already have children to have more but it may not change the minds of couples who don't want any children in the first place.
Joni Ong, president of advocacy group I Love Children said: "I agree that money is useful but money isn't everything. I believe if you love children and you want to have children to complete your family, no matter how much money is there or not there, you will proceed to have the babies anyway."
Experts said what is needed is a supportive environment at home and at work, among other things.
"For my case, I would think it would be useful as well if the Baby Bonus is higher because what we have, could only tied us for the first few years. After that, I have to start paying cash for their childcare," said Madam Lum.
She added: "Another part is also the family support like maybe having grandparents to be there to take care of the kids. As a working mum, I would say that the environment is very important and also the work-life balance that we have."
- CNA/fa
- wong chee tat :)
Friday, December 14, 2012
More Supplementary Retirement Scheme accounts opened at year-end
More Supplementary Retirement Scheme accounts opened at year-end
By Linette Lim | Posted: 13 December 2012 1928 hrs
SINGAPORE: More Supplementary Retirement Scheme (SRS) accounts are opened in the month of December each year, according to banks in Singapore.
The SRS is a voluntary savings scheme and administered by three local banks.
OCBC Bank said SRS account openings this month can be more than five times that of other months.
As the year comes to a close, financial advisors said more clients are topping up SRS accounts in order to qualify for tax savings.
Launched by the government in 2001, the scheme encourages people to put aside money for their retirement. This is over and above what they have in their mandatory CPF accounts.
The money can only be withdrawn at retirement age, which currently stands at 62, but only half of it will be taxed upon withdrawal.
Wong Sui Jau, General Manager of Fundsupermart.com, said: "It works based on a deferred tax scheme, so for monies that you actually put into the SRS, it will not count towards your chargeable income. I think the biggest benefits is for people in high-income tax brackets, because it allows them to reduce their chargeable income for tax."
The number of SRS account holders is growing at above 10 per cent each year since the scheme began.
The take-up rate for the scheme is modest, relative to the size of the taxable population.
There are more than a million taxable individuals in Singapore as at 2010, according to official statistics.
However, not everyone pays tax as their income could be too low.
Assuming only those with an annual income above $40,000 pays tax, there are around 720,000 tax-paying individuals. Out of this, only slightly more than 70,000 are SRS account holders.
This means only 10 per cent of people who are eligible to open an SRS account have done so.
Wong Sui Jau added: "SRS is not like your CPF ordinary account or special account where you have special interest rates you will receive. The interest rate is no different from what you get if you put it in a bank which almost definitely mean you will really need to invest it because this is money that is going to be locked up for the long term."
Money in SRS accounts can be used to invest in stocks and insurance, and the investment returns are accumulated tax-free.
Still, experts say the SRS is not for everyone. For example, it may not be appropriate for those with many dependents under their charge.
Chew Hock Beng, Associate Director of Financial Advisory Group, Financial Alliance, said: "They probably have to take care of four parents for a married couple, and two to three kids, so a lot of money have been used for expenses."
According to DBS, SRS contributors should make sure that they have adequate disposable income and emergency funds, because premature withdrawals will incur a 5 per cent penalty and will be 100 per cent taxed.
- CNA/de
- wong chee tat :)
By Linette Lim | Posted: 13 December 2012 1928 hrs
SINGAPORE: More Supplementary Retirement Scheme (SRS) accounts are opened in the month of December each year, according to banks in Singapore.
The SRS is a voluntary savings scheme and administered by three local banks.
OCBC Bank said SRS account openings this month can be more than five times that of other months.
As the year comes to a close, financial advisors said more clients are topping up SRS accounts in order to qualify for tax savings.
Launched by the government in 2001, the scheme encourages people to put aside money for their retirement. This is over and above what they have in their mandatory CPF accounts.
The money can only be withdrawn at retirement age, which currently stands at 62, but only half of it will be taxed upon withdrawal.
Wong Sui Jau, General Manager of Fundsupermart.com, said: "It works based on a deferred tax scheme, so for monies that you actually put into the SRS, it will not count towards your chargeable income. I think the biggest benefits is for people in high-income tax brackets, because it allows them to reduce their chargeable income for tax."
The number of SRS account holders is growing at above 10 per cent each year since the scheme began.
The take-up rate for the scheme is modest, relative to the size of the taxable population.
There are more than a million taxable individuals in Singapore as at 2010, according to official statistics.
However, not everyone pays tax as their income could be too low.
Assuming only those with an annual income above $40,000 pays tax, there are around 720,000 tax-paying individuals. Out of this, only slightly more than 70,000 are SRS account holders.
This means only 10 per cent of people who are eligible to open an SRS account have done so.
Wong Sui Jau added: "SRS is not like your CPF ordinary account or special account where you have special interest rates you will receive. The interest rate is no different from what you get if you put it in a bank which almost definitely mean you will really need to invest it because this is money that is going to be locked up for the long term."
Money in SRS accounts can be used to invest in stocks and insurance, and the investment returns are accumulated tax-free.
Still, experts say the SRS is not for everyone. For example, it may not be appropriate for those with many dependents under their charge.
Chew Hock Beng, Associate Director of Financial Advisory Group, Financial Alliance, said: "They probably have to take care of four parents for a married couple, and two to three kids, so a lot of money have been used for expenses."
According to DBS, SRS contributors should make sure that they have adequate disposable income and emergency funds, because premature withdrawals will incur a 5 per cent penalty and will be 100 per cent taxed.
- CNA/de
- wong chee tat :)
Wednesday, November 28, 2012
国内税务局：除了一、两房式组屋 其他组屋类型明年的产业税在回扣后将增加
Updated: 11/28/2012 03:51
国内税务局：除了一、两房式组屋 其他组屋类型明年的产业税在回扣后将增加
国内税务局宣布：除了一房式和两房式组屋外，其他组屋类型明年的产业税在回扣后将增加，增幅介于40到50元。
国内税务局宣布：除了一房式和两房式组屋外，其他组屋类型明年的产业税在回扣后将增加，增幅介于40到50元。
当局是在上调政府组屋明年的年值后，进而提高产业税，以反映市场租金增幅的情况。产业税的调整将从明年1月1号起生效。
在这同时，政府将给予组屋屋主一次过、40元的回扣，以缓解中低收入家庭的经济负担。
至于一房式和两房式组屋屋主，则同今年一样，明年无需支付产业税。
- wong chee tat :)
国内税务局：除了一、两房式组屋 其他组屋类型明年的产业税在回扣后将增加
国内税务局宣布：除了一房式和两房式组屋外，其他组屋类型明年的产业税在回扣后将增加，增幅介于40到50元。
国内税务局宣布：除了一房式和两房式组屋外，其他组屋类型明年的产业税在回扣后将增加，增幅介于40到50元。
当局是在上调政府组屋明年的年值后，进而提高产业税，以反映市场租金增幅的情况。产业税的调整将从明年1月1号起生效。
在这同时，政府将给予组屋屋主一次过、40元的回扣，以缓解中低收入家庭的经济负担。
至于一房式和两房式组屋屋主，则同今年一样，明年无需支付产业税。
- wong chee tat :)
Increase in property tax for HDB 3-room flats and above
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 File picture of HDB flats (Photo by: Hester Tan, channelnewsasia.com) | |||||||
SINGAPORE: All one- and two-room owner-occupiers of HDB homes do not need to pay property tax in 2013, similar to 2012.
For a majority of other HDB flat types, the property tax bill for 2013 will increase by between S$40 and $50, after taking into account a new S$40 rebate.
The increase in property tax comes after the revision of Annual Values (AVs) of HDB flats with effect from 1 January 2013, reflecting the rise in market rentals.
To mitigate the increase in the property tax payable by lower and middle-income households as a result of the AV revision, the government will give a one-off rebate of S$40 to owner-occupied HDB flats.
The Inland Revenue Authority of Singapore (IRAS) reviews the AVs of all properties - including HDB flats - annually.
The AV, which is based on the estimated annual market rent of a property if it were to be let out, applies to all homes, including owner-occupied homes. It is used as a basis to compute the property tax payable.
Property tax is calculated at 10% of the AV for non owner-occupied homes. For owner-occupied homes, the property tax payable is calculated based on concessionary tax rates (see table).
For a majority of other HDB flat types, the property tax bill for 2013 will increase by between S$40 and $50, after taking into account a new S$40 rebate.
The increase in property tax comes after the revision of Annual Values (AVs) of HDB flats with effect from 1 January 2013, reflecting the rise in market rentals.
To mitigate the increase in the property tax payable by lower and middle-income households as a result of the AV revision, the government will give a one-off rebate of S$40 to owner-occupied HDB flats.
The Inland Revenue Authority of Singapore (IRAS) reviews the AVs of all properties - including HDB flats - annually.
The AV, which is based on the estimated annual market rent of a property if it were to be let out, applies to all homes, including owner-occupied homes. It is used as a basis to compute the property tax payable.
Property tax is calculated at 10% of the AV for non owner-occupied homes. For owner-occupied homes, the property tax payable is calculated based on concessionary tax rates (see table).
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Since the last revision of AVs of all HDB flats on 1 January 2012, market rentals of HDB flats have risen by 8% to 13%. Accordingly, the AVs of all HDB flats will be revised from 1 January 2013.
To mitigate the impact of the increase in property tax payable, all owners of owner-occupied HDB flats will be given a one-time rebate of S$40. It will be automatically set off against the property tax payable in 2013. This rebate will not apply to non owner-occupied HDB flats which are currently taxed at 10%.
94% of HDB flat owners will receive this rebate.
All one- and two-room HDB owner-occupiers will not need to pay any property tax in 2013 as their revised AVs remain below S$6,000.
The revised property tax bills of other owner-occupied flat types, after taking into account the property tax rebate, are shown in the table below.
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- CNA/ir
- wong chee tat :)
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