Tax questions

Employment income
Biz income
=Statutory income
Less: approved donation & losses
= Assessable income
Less: personal reliefs
= chargeable income

Deductible donations:
Cash
Shares
Computer
Artefacts
Under public art tax scheme
(PATIS)
Land and building donations
2.5x 1 Jan 2009 31 Dec 2014
3x for 1 Jan 2015 31 Dec 2015 (YA 16
only)
2.5 1 Jan 2016 31 dec 2018

Income derived from an annuity on or

after 1 Jan 2004 is exempted under
S13(1)(ze)(iii)
Pension is taxed after 1/1/93 (approved
pension scheme)
Full sum of government pension is
exempted from tax
Received commission of $10,000
Taxable?
XX a Singaporean aged 40, was
assigned overseas for 2 yrs
commencing on 31 Oct 2014.
He has a wife who is not working and a
2 yr old son. Received folllwing income:
Salary from overseas
employment
o Paid in sg 60k
o Paid in overseas 40k
Net rental income from house in
SG 30k
Singapore dividend income 4,000
Int from saving account 5,000
Gain on sale of foreign company
shares listed overseas 10,000
Effective tax rate of overseas country is
25%
1) Residence status for YA 2015 and

Yes under S10(1)(g) of ITA

Resident during the period as his

absence is only temporary.
Can elect to be NR but it will not be
beneficial to him to make such an
election as all forign sourced income
remitted or received in SG by RESIDENT
is tax exempt under S13(7A)
+ as resident indiv his other SG sourced
taxable income will be taxed at
graduated indiv income tax rates after
deducting personal reliefs which a NR is
not entitled to .
Statutory income only 30k (rest not
taxable)

determine statutory income for

Ya 2016
He was provided a car SXD 5747 as well
as a chauffeur
Car cost 250,000 (including COE of
30,000) and the R.V is 45,000. The
company paid for running expenses of
$16,000 and the salary of the chauffeur
is 18,000. The total milege for the yr
was 24,000 in which 25% was for
private usage
Explain if the following can or cannot be
deducted

Transport allowance for David,

manager
Contribution to EPF, Malaysian
provident fund for David
Income tax of david
Staff dinner and dance
Adjust all these to add or deduct from
profits per audited account that
adopted FRS 39 tax treatment. And why
Advances to
creditor written
off
Allowance for
impairment loss
on non-trade
receivables
Allowance for
impairment loss
on trade
receivables
Loans to exemployee written
off
Loan for purchase
of shares in a
subsidiary, no
dividends were
received
Loan for purchase
of factory

1. Cost of car = (3/7)*(250,00045,000)/10) + (0.55 *

(0.25*24,000)
= 12,086
2. Running expenses (ignored
given in 0.55/pte km)
3. Chauffer is 18,000 *
(6,000/24,000) = 4,500

1) Y (if no motor car expense)

2) Y (part of BIK)
3) Y (part of BIK)
4) Y (under concession by
IRAS)

Advances to
creditor written
off
Allowance for
impairment loss
on non-trade
receivables
Allowance for
impairment loss
on trade
receivables
Loans to exemployee written
off
Loan for purchase
of shares in a
subsidiary, no
dividends were
received

ADD

ADD (only trade

receivables can
deduct. Timing
dif)
Deduct

ADD

ADD (if dividend

income was
received, int exp
will still be added
back but
dedutible against
dividend income.
But if div income
is exempt from
tax, the
deductibility of

Increase in
allowance of
impairment loss
on non-trade
recieveables
Recovery of loan
to ex-employees
Int charged by
creditors for late
payment
Int for loan for
purchase of
machinery
Int charged by
CPF board for late
payment
Int income on fair
value
adjustments on
int free loans to
associate coy
(gains)
Int exp on fair
value
adjustments on
int free loans
from holding coy
(exp/loss)
Allowance for
impairment loss
in value of
investment in
subsidiary coy
(exp/loss)

Loan for purchase

of factory
Increase in
allowance of
impairment loss
on non-trade
recieveables
Recovery of loan
to ex-employees
Int charged by
creditors for late
payment
Int for loan for
purchase of
machinery
Int charged by
CPF board for late
payment
Int income on fair
value
adjustments on
int free loans to
associate coy
(gains)
Int exp on fair
value
adjustments on
int free loans
from holding coy
(exp/loss)
Allowance for
impairment loss
in value of
investment in
subsidiary coy
(exp/loss)
Unrealized capital
gains
Realized capital
losses
Purchase of plant
and machinery

loan int exp

against such
dividend income
becomes
irrelevant)
Nil
Add

Deduct
Nil

Nil

Nil

Deduct

Add

Add

Deduct (capital)
reverse back
Add
Add

Conditions for donations

Translation of
Add
loans
Realized
Add
exchange loss on
repayment of
loan
Settlement of
foreign currency
loans (gainds)
Translation of
Add
bank and cash
Cash donations
Shares donations
Computer donations
Artefacts/painting donations
Land and building donations