Wednesday, July 25, 2012

IRAS Income Tax

I was thinking what to blog today when I opened up the envelope from IRAS. As expected, it is taxation time! I was shocked to see that despite earning slightly more than last year, my income tax shot up by 28%!How could it be? I am just a common layman earning a very modest income! It was then that I checked out IRAS website to learn about how the whole taxing works.

It is by the nearest-bracket-kind of theory and I was also quite surprised to learn that for chargeable income above $320,000 annually, the income tax is a flat 20%! Hence it is not surprising for the many number of Singaporeans earning at least $1,000,000 annually, the income tax they pay is at least $200,000!

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