Middle-income earners will enjoy the largest tax reductions this year. (Getty Images)
There is joy for Singaporeans in the middle after all, as the Inland Revenue Authority of Singapore(IRAS) over the weekend announced a more progressive tax rate structure for citizens, with the middle-income earners benefiting from the largest reductions.
[Click here to see more details on the revised tax structures and how to file your taxes, if you need to.]
While taxes payable remain about the same for the lowest income bracket of chargeable income earned—taking a dip from 3.5 per cent to two per cent on the next $10,000 earned after the first $20,000, those who earn between $40,000 and $120,000 in chargeable income annually will enjoy up to 2.5 per cent tax deductions, with those earning up to $120,000 having to pay up to $6,600 less than they used to.
Conversely, higher-income earners will be taxed a higher amount, with citizens now having to pay 18 per cent instead of 17 if they earn more than $200,000 in annual chargeable income, making the total amount of taxes payable in excess of $160,000 to be $28,400 instead of $27,200.
The table below shows the changes in tax rates:
Revised personal income tax returns for the year 2012. (Table from Inland Revenue Authority of Singapore)
This year, half of the 1.8 million taxpayers in Singapore will not have to file their tax returns, and will receive their notices of assessment directly from IRAS, thanks to the No-Filing Service (NFS).
Taxpayers eligible for this service will have been notified either by letter or an SMS notification, and will not have to file returns unless they have additional income to declare or changes to make to their personal reliefs.
A new feature for taxpayers eligible for the NFS also allows them to find out what his or her estimated tax will be on myTaxPortal, IRAS' online tax filing platform.
Taxpayers who have been instructed to file their tax returns are required to do so by 15 April (if by paper), and by 18 April, if done online. Failure to do so by these dates will result in penalties ranging from $150 to $1,000, with others being summoned to court.
*back into the abyss of death*
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