Lesson Summary : Example17b (Jemima)

Problem:

Example 17b:

Mr Fong was 64 years old in 2012. He earned $250,000 in 2012. His chargeable income for the Year of Assessment (YA) 2013 is computed as follows:

	$	$
Total Employment Income		250,000
Less: Donations		250
Assessable Income*		249,750
Less: Reliefs
Earned Income Relief	8,000
Employee CPF contribution relief	6,375	14,375
Chargeable Income*		235,375

What is Mr Fong's tax payable on his chargeable income of $235,375?

(ans: http://www.iras.gov.sg/irasHome/page04.aspx?id=8278)

Solution:
First $200,000                     20,750.00

Next $35375 at 18%              6367.50

                                      _____________
Gross tax payable                 27117.50

Less: YA 2013                        1500.00
Personal tax rebate
(Max of $1500)
                                       _____________
                                             25,617.50

Mr Fong's tax payable is $25,617.50.