Question
XY Pte Ltd (XY) is a property investment company and tax resident in Singapore. It owns and manages a shopping mall in Clementi, Singapore. To
XY Pte Ltd (âXYâ) is a property investment company and tax resident in Singapore. It owns and manages a shopping mall in Clementi, Singapore. To bring Christmas spirit into the neighbourhood, it invited a popular pianist from Philippines to perform on the foyer of the mall for 5 days from December 22 - 26, 2020. The pianist took the opportunity to extend his stay for 2 days to visit friends in Singapore.
The agreed terms and conditions for the appearance are as follows:
Engagement duration December 22 to 26, 2020 (5 days)
Appearance fee $1,500
Performance fee $8,000
Accommodation allowance $2,200
Singapore Income Tax (if any), is borne by the pianist
At the end of the engagement, XY Pte Ltd presented a crystal piano music box as a souvenir to the pianist. The music box has a market value of $150.
The pianist incurred the following for the engagement in Singapore:
Hotel accommodation paid by the pianist for his 7 days in Singapore ($320/day)
$2,240
Airfare paid by the pianist $1,500
Suits tailored specifically for performance
purposes
$800
Amount spent by pianist for the meals during
his stay
$450
Amount spent by pianist for the taxi fares from
hotel to the shopping mall for performance
$200
Amount spent by pianist for the transport to
and from airport
$80
Required:
Compute the tax liability of the pianist for the engagement using an appropriate format for tax computation and indicating â0â for items stated in the question which do not require tax adjustments or are not taxable.
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