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Question 1: a&gt, Tax treatment for an individual if perhaps his workplace was to provide the following benefits in bundle 1: Rental of flat $ Wage Airfare for home leave (1trip) (20% by 5000) you, 000 220, 000 Employee’s remuneration 221, 000 Leasing of condo (housing holiday accommodation benefit) for any non- movie director will be assessed based on the lower of: the annual worth of the lodging provided or 10% from the employee’s remuneration inclusive of all other benefits except hotel holiday accommodation.

Therefore , housing benefit will be assessed in $22, 90 because it is examined based on the low of (10% x 221, 000= $22, 100) or annual worth of local rental apartment of $60, 500. Home keep passage Relating to Singapore tax rules, home leave passage is usually provided by company to nonSingaporeans and non-permanent residents, the main benefit is assessable to duty based on 20% of the cost to the employer.

This concessionary treatment simply can apply at ONE return leave passage per annum every single for automobile and partner, and TWO return passage for each child of staff per annum in the event child should be unmarried, under 16 years old or otherwise getting full-time education or incapacitated. Therefore , with this package one particular, Mr Rouse will be evaluated for home keep passage by: 20% times 5, 000= $1, 1000 Relocation passageway

According to Singapore duty law, moving passages are by subside not a taxable benefit for the employee in order that all the relocation expenses is usually not taxable benefit for Mr Promote. b&gt, Package deal 1: money Salary Twelve-monthly rental of apartment Home leave passing (20% by 5000) Statutory income Significantly less: donation Assessable income Fewer: Relief Chargeable income Tax upon 1st $160, 000 Equilibrium @ 17% (238, 100 ” 160, 000) times 17% 220, 000 22, 100 1, 000 243, 100 ZERO 243, 95 (5, 000) 238, 95 15, five-hundred 13, 277 28, 777 Less: 20% tax discount (capped by $2000) Net tax payable (2, 000) 6, 777 Package a couple of: $ Income Statutory Profits Less: charité Assessable salary Less: Relief Chargeable income Tax in initial $160, 1000 Balance snabel-a 17% 17% x (295, 000-160, 000) 300, 500 300, 000 NIL three hundred, 000 (5, 000) 295, 000 12-15, 500 twenty-two, 950 35, 450 Significantly less: 20% duty rebate (capped at $2, 000) Net tax payable (2, 000) 36, 450 c&gt, Mister Rouse will need to choose bundle 1 since in this package, he can obtain many benefits and also many concessionary treatments that could reduce the net tax payable, in order to get bigger return than in package 2 . &gt, Singapore is a nation where the federal government uses many policies including many benefits, treat with account to attract skills from various the various other countries and tax legislation is certainly not the exemption. Therefore , Mr Rouse will need to choose or ask even more benefits instead of only large salary including house holiday accommodation benefit, residence leave passing, relocation passing, transportation benefit, etc¦. to earn many concessionaries to minimize his statutory income as well as to reduce tax payable. Query 2: a&gt, The relevant dates in shareholder’s continuity test out are different for unabsorbed capital allowances and trade losses and gift.

Unabsorbed capital allowances can be carried against future earnings provided the shareholdings will be substantially the same (50% or more) inside the 2 relevant dates: The past day with the YA (31 Dec) it arose As well as the first day time of the EN ESTE MOMENTO (1 Jan) it is utilized Trade losses and charitable contributions can be taken against upcoming profits supplied the shareholdings are substantially the same (50% or more) in the a couple of relevant dates: The last day time of the yr it arose (31 December of the calendar year) Plus the first day of the YA it is used (1 January of YA) b&gt, YA 2008: , Adjusted taxes loss (trade loss) YA 2009: , Adjusted earnings $40, 500 $422, 000

The investors of Feathers Pte Ltd based on % are the following: 31/12/2007 Ee Mei Dorothy 60% forty percent 30/9/2008 forty percent 60% 31/12/2008 40% 60 per cent 1/1/2009 10% 90% Presumption: on one particular Jan 2009, Donald even now holds 5000 shares (total shares happen to be 50, 500 shares) Consequently , Queens’s investors and their shareholdings are as follows: Number of talk about 31/12/2007 Jesse Ee Mei Ee Mei 25, 500 20, 1000 60% times 5, 1000 = 3000 Sarah forty percent x your five, 000 = 2000 Count of 50, 000 shares 30/9/2008 5, 500 10, 1000 40% by 35, 500 = 14, 000 60% x thirty-five, 000 sama dengan 21, 500 50, 1000 s by 31/12/2008 your five, 000 12, 000 forty percent x thirty-five, 000 = 14, 000 60% back button 35, 000 = 21 years old, 000 55, 000 1/1/2009 5, 500 40, 000 10% x 5, 1000 = 500 90% back button 5, 500 = 4, 500 40, 000 Two relevant dates in shareholder’s continuity evaluation for control loss happen to be 31 December 2007 and 1 By 2009. Queens’s shareholders and their shareholdings in % the following: 31/12/2007 Jesse Ee Mei 50% (20, 000 & 3, 000)/ 50, 000 x 100% = 46% Sarah (2000/ 50, 000) x completely = 4% 100% 1/1/2009 10% (40, 000 + 500)/ 40, 000 x 100% = 81% (4, 500/ 50, 000) x totally = 9% 100%

Earlier year’s operate loss (adjusted tax loss) in EN ESTE MOMENTO 2008 can be carried against YA 2009 current year’s profit as the shareholdings will be substantially a similar (50% or more) inside the two relevant dates of 31/12/2007 and 1/1/2009. EN ESTE MOMENTO 2009: dollar Adjusted earnings Less: transact loss helped bring forward 422, 000 (40, 000) Assessable income/ chargeable income 382, 000 &gt, Conditions to qualify for the tax exemption for new start-up company: A “qualifying company means a firm incorporated in Singapore which for each with the first 3 years of evaluation is homeowner in Singapore for that YA, and has its total share capital beneficially kept directly by no more than twenty shareholders:? Every one of whom are individuals throughout the basis period for that EN ESTE MOMENTO or At least among whom is an individual aktionär holding by least 10% of the amount of released ordinary stocks of the company throughout the basis period for your YA.

Regarding a company restricted to guarantee:? all its associates must be individuals throughout the basis period for your YA or at least one of its affiliate is an individual throughout the basis period for this YA, plus the contribution of this individual under the Memorandum of Association with the company towards the assets with the company in the instance of its being wound up, sums to at least 10% of total contributions with the members of the company through the basis period for that EN ESTE MOMENTO.

Question several: a&gt, The Singapore tax system is regarded as a comarcal system mainly because income accruing in or perhaps derived from Singapore (Singapore sourced) or offshore income received or regarded received in Singapore can be assessable to tax. In other words, income that may be sourced outside Singapore can be not chargeable to Singapore income tax in the event this international income is usually not received or deemed received in Singapore.

A single exception to the rule is usually dividend gain in Singapore. Under the fresh one-tier corporate tax program since 1 January 2003, tax only will be made at the company level and dividends written by a Singapore tax resident company will be tax exempt for its investors. b&gt, Supposition: basic period is 1/1/200x to 31/12/200x Ms Dinh Tam’s 2-year contract will be from 1/4/2006 to 31/3/2008.

Year assessment of Physical presence in Residence Singapore/ period of job YA 3 years ago 1/4/2006- 31/12/2006 Resident Exercise of work in Singapore is more than 183 days in the standard period YA 2008 1/1/2007- 31/12/2007 Resident Exercise of employment in Singapore much more than 183 days inside the basic period YA 2009 1/1/2008- 31/3/2008 nonresident Both periods of employment and physical presence are less than 183 days. Remarks c&gt, Mr Color KL, a Singapore resident, purchased a home in China and tiawan. He rental prices it out plus the rent can be credited in to his banking account in Hong Kong by the house agent.

It indicates he obtains a rental cash flow in Chinese suppliers and this income may be subject to tax in China remitted to Singapore is not impacted by Singapore duty. In addition , in respect to Singapore tax legislation, all foreign sourced income remitted by simply INDIVIDUAL CITIZEN in Singapore on or right after 1 January 2004 will probably be exempt from tax. d&gt, Determine whether the subsequent receipts can be considered as salary for tax purposes: i&gt, This salary will be not affected by tax if Ah Kow is Singapore resident because this income might be taxed in Macau remitted to Singapore is not affected by Singapore taxes.

In addition , according to Singapore tax law, all international sourced salary remitted by simply INDIVIDUAL RESIDENT in Singapore on or after 1 January 2004 will probably be exempt from taxes. ii&gt, Profits made by a share broker from sale of stocks and shares is taxable income mainly because shares are thought as his inventory to make profit therefore it is called income receipt with this share broker and that is susceptible to Singapore taxes. iii&gt, Samantha Lee, a teacher built a profit in the sale of her piano can be exempt from duty if this piano is usually her set asset and Samantha Shelter doesn’t do it again piano buy and sales transaction frequently.

It means this profit is capital receipt, not earnings receipt and so that it is certainly not taxable. iv&gt, Money received from an unlawful organization in Singapore is taxable income since it is revenue invoice and income derived in Singapore so that it is be subject to tax in Singapore. v&gt, Money received from sale of computer with a private university is not impacted by tax since computer is considered as fixed asset with this private college. It means this income can be capital receipt that is not taxable income.

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