ADDENDUM

CORPORATE TAX

Rate Year of assessment 2019/20 Tax @ 17%

Partial tax exemption $

First $10,000 of chargeable income is 75% exempt 7,500

Next $290,000 of chargeable income is 50% exempt 145,000

Total 152,500

GOODS AND SERVICES TAX

Zero Rate 0%

Standard rate 7%

PERSONAL INCOME TAX RATE

Chargeable Income Rate Tax (S$)

On the first 20,000 0 0

On the next 10,000 20 200

On the first 30,000 200

On the next 10,000 35 350

On the first 40,000 550

On the next 40,000 70 2,800

_______________

On the first 80,000 3,350

On the next 40,000 115 4,600

On the first 120,000 7,950

On the next 40,000 150 6,000

On the first 160,000 13,950

On the next 40,000 180 7,200

On the first 200,000 21,150

On the next 40,000 190 7,600

On the first 240,000 28,750

On the next 40,000 19.5 7,800

___________________

On the first 280,000 36,550

On the next 40,000 20.0 8,000

__________________

On the first 320,000 44,550

On excess of 320,000 22.0

PERSONAL INCOME TAX RELIEFS FOR YEAR OF ASSESSMENT 2019 and 2020

Earned income Normal (max) Handicapped (max)

Below 55 years $1,000 $4,000

55 to 59 years $6,000 $10,000

60 years and above $8,000 $12,000

Spouse relief $2,000 (max)

Qualifying child relief $4,000 (per child)

Working mothers child relief (WMCR) % of mothers earned income

First child 15%

Second child 20%

Third and subsequent child 25%

Maximum WMCR 100%

Maximum relief per child $50,000 capped

Same Different

Household Household

Parent Relief $9,000 $5,500

NS Men Self - $1,500

NS Men parent/wife - $750

Foreign Maid Levy Relief - $6360/ $2880

CPF contribution Employer Employee

Less than 55 years 17% 20%

Above 55 to 60 years 13% 13%

Above 60 to 65 years 9% 7.5%

Y/A 2020 PERSONAL RELIFS ARE CAPPED AT $80,000 per Y/A

Question 4 [20 marks] Simpson Pte Ltd is a qualifying small and medium enterprise (SME). It has an accounting year end of 31 October. It bought new equipment on hire purchase terms for its manufacturing department. The details are as follows: Down payment on 1/3/18 $380,000 18 monthly instalments of $100,000 on the 1st day of each month $1.800.000 $2,180,000 The cash price was $2mil and the first instalment was due on 1 April 2018. Required: (a) Calculate the amount of capital allowances available to Simpson Pte Ltd under s19, s19A(1) and 19A(2) for the relevant years of assessment (assume that Simpson Pte Ltd has not claimed any PIC equipment in previous year). [17 marks) (b) There are some conditions to use capital allowances for a taxpayer. Identify any 3 conditions for the use of capital allowances. [3 marks) Question 4 [20 marks] Simpson Pte Ltd is a qualifying small and medium enterprise (SME). It has an accounting year end of 31 October. It bought new equipment on hire purchase terms for its manufacturing department. The details are as follows: Down payment on 1/3/18 $380,000 18 monthly instalments of $100,000 on the 1st day of each month $1.800.000 $2,180,000 The cash price was $2mil and the first instalment was due on 1 April 2018. Required: (a) Calculate the amount of capital allowances available to Simpson Pte Ltd under s19, s19A(1) and 19A(2) for the relevant years of assessment (assume that Simpson Pte Ltd has not claimed any PIC equipment in previous year). [17 marks) (b) There are some conditions to use capital allowances for a taxpayer. Identify any 3 conditions for the use of capital allowances. [3 marks)