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Tax Computation - IRAS

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Tax Computation - IRAS Powered By Docstoc
					OBJECTIVE

The BASIC TAX CALCULATOR is designed to help you calculate the tax liability of the
club/society/association for the Year of Assessment 2008 onwards. You may submit the
tax computation with the club's or association's tax returns.

INSTRUCTIONS TO USE THE TAX CALCULATOR

1. Get ready the organisation's accounts and necessary information before you start

2. Enter information (where necessary) in the shaded areas.

3. For more information on the particular item, you may click on

4. You do not need to enter values in any of the three supporting computation of Effective Tax Rate.
The computed Effective Tax Rate will be populated at the main computation.



Disclaimer :
This Tax Calculator will provide you with an estimate of the organisation's tax liability, based on the
information you enter in the main tax computation. The amount of actual tax liability of the organisation will depend on
IRAS's review of the information you provide in the tax return.


                       To start using the main tax computation, please click here
y of the organisation will depend on
Tax Reference Number
Name of Taxpayer
Enter information in the shaded field.

TAX COMPUTATION FOR YA
                                                                       S$
 1 TRADE

     NET SURPLUS/ (DEFICIT)
     Less    Separate source / non-taxable income
             Rental Income
             Interest
             Others (eg. profit on sale of fixed asset)
                                                                        0
     Add         Disallowable expenses
                 Depreciation
                 Donation
                 Income Tax
                 Loss on sale of fixed asset
                 Penalty & fines
                 Expenses incurred to earn rental income
                 Others
     ADJUSTED NET SURPLUS/ (DEFICIT)                                    0
     Less        Unutilised Capital Allowance (CA) b/f
                 Current YA Capital Allowance (CA)                                           0
                                                                        0
                 Unutilised Loss b/f
                                                                        0
     ADJUSTED NET SURPLUS/ (DEFICIT) AFTER CA AND LOSS                  0

 2 INTEREST
   DIVIDEND
 3 SINGAPORE (GROSS)
   OTHER COUNTRY                                                            0.00

 4 RENT & OTHER INCOME ARISING FROM PROPERTY
 5 OTHER INCOME
 6 TOTAL INCOME / (LOSS) (1 to 5)

 7 LESS:         DONATIONS TO APPROVED IPCs
                 Amount unutilised b/f from previous YA
                 Amount for current Year of Assessment
                                                                        0
                 Amount unutilised c/f to next YA                       0

 8 CHARGEABLE INCOME
   Tax at Effective Tax Rate                             #DIV/0!   ##### ####      0.0000%
   Tax Assessed
   Less: tax set-off
     Tax Deducted At Source
 9                                                                 Tax payable/(repayable)

     Unutilised Capital Allowance c/f to next YA                                             0
     Unutilised Losses c/f to next YA                                                        0
S$
 0




 0


 0
 0     0   0
 0

 0




 0

0.00

0.00
0.00

 0
 0
Basis period
Income of the club/society/assocation is assessable on a preceding year basis.
This means that the basis period for any Year of Assessment (YA) generally refers to the financial year ending in the year precedin

Organisation with December financial year end
The organisation's accounts are prepared up to 31 December each year. The basis period for each YA is the preceding calendar ye
Example, your organisation's basis period for YA 2009 is from 1 Jan 2008 to 31 Dec 2008.

Organisation with non-December financial year end
The organisation's accounts are prepared up to the financial month for each year.
Assuming your financial year end is 30 June, your accounts are prepared up to 30 June each year. The basis period for each YA is
Example, your organisation's basis period for YA 2009 is from 1 Jul 2007 to 30 Jun 2008.


                                                                        Click here to return to Main Tax Computation


Section 11(1) of the Income Tax Act

Clubs or similar institutions

What is a club or similar institution?
A club or similar institution refers to a not-for-profit association or society formed for social, recreational or leisure purposes.

Who are the members?
Members are persons who are entitled to vote at the general meeting of the body at which effective control is exercised over the aff

How are clubs or similar institutions taxed?

Where more than 50% of the gross revenue receipts on revenue accounts are from members, the clubs or similar institutions are n
Nevertheless, they will be liable to tax on income from other sources derived from dealings with non-members such as interest, ren
Where less than 50% of the gross revenue receipts on revenue accounts are from members, the clubs or similar institutions are de
They will be taxed on their operating surplus (total receipts of income less tax-deductible operating expenses), in addition to the inc
dealings with non-members such as interest, rent and dividends.

How to determine the 50% rule?

In order to determine if Club ABC satisfies the 50% requirement, we need to make a comparison of receipts between members and
Where more than 50% of the receipts are from members, Club ABC is not deemed to be carrying on a business.
However, it will be taxed on the other sources of income derived from dealings with non-members. Thus, tax is payable on its rent,

Management Corporations

What is a Management Corporation?
Management Corporation (MC) is set up by the legal owners under the Building Maintenance & Strata Management Act 2004 to pro
Thus, the cost of maintenance, insurance and any other common expenses are shared amongst the subsidiary proprietors.

How are MCs taxed?
For tax purposes, the MC is regarded as a taxable body of persons separate from the subsidiary proprietors. It is taxed in the same

Section 11(2) of the Income Tax Act

Trade Associations
What is a trade association?
A trade association refers to a body of traders, businessmen or professionals who join together in order to further, promote and pro

Who are the members?
Members are persons who are entitled to vote at the general meeting of the body at which effective control is exercised over the aff

How are trade associations taxed?
Trade associations are deemed to be carrying on a business if more than 50% of their receipts, by way of entrance fees and subsc
deductions for tax purposes. They will be taxed on their operating surplus (total receipts of income less tax-deductible operating exp


                                                                Click here to return to Main Tax Computation


Net Surplus/ (Deficit)

To enter amount of surplus/deficit if organisation is deemed to be carrying on a business (trade) in the basis year.For Net deficit, pl


                                                                Click here to return to Main Tax Computation


Unutilised Losses and Capital Allowances

Where the organisation is deemed to be carrying on a business in a Year of Assesment (YA) :

(a) unutilised losses arise where the adjusted deficit exceeds the other sources of income or where there are no other sources of in
(b) unutilised capital allowances arise where there is insufficient or no adjusted surplus from trade and other sources of income to o

The unutilised losses and capital allowances can be carried forward (c/f) to offset against the organisation's assessable income for


                                                                Click here to return to Main Tax Computation


Interest Income

Include interest received/receivable from all bank accounts and deposits including POSB savings accounts with DBS Bank.


                                                                Click here to return to Main Tax Computation


Dividend Income

All Singapore dividends paid on or after 1 Jan 2008 are exempt dividends and need not be entered in the tax computation.


                                                                Click here to return to Main Tax Computation


Rental & Other Income Arising From Property

Enter the net* rental or other income derived from the use of the property arising from all properties.
DO NOT enter rental deficit as it is not claimable.

*Gross rental income (inclusive of rental of furniture and fittings) less expenses incurred in the production of rental income such as
fire insurance, repairs, maintenance and etc.
                                                                Click here to return to Main Tax Computation


Other Income

Income which does not fall into any of the classifications listed in the main tax computation.

                                                                Click here to return to Main Tax Computation

Donations to Approved IPCs

Enter amount of unutilised donation brought forward from previous Year of Assessment (YA).
And /or enter double the amount as shown on the donation* receipt for current YA.

*Only outright CASH donations made to approved Institutions of a Public Character (IPC) in Singapore or the Singapore Governme
For other forms of donations, please refer to IRAS website at http//www.iras.gov.sg

With effect from YA 2005, a body of person may elect to claim deduction of approved donations on an accounting year basis. For d
"Simplification of Income Tax Rules and Procedures - Assessment of Non-Trade Income and Deduction of Approved Donations on

                                                                Click here to return to Main Tax Computation


Unutilised Donations

Unutilised donations arise where there is insufficient or no adjusted surplus from trade and other sources of income to offset agains
With effect from YA 2003, the unutilised donations can be carried forward to offset against the organisation's chargeable income fo

                                                                Click here to return to Main Tax Computation
rs to the financial year ending in the year preceding the YA.


sis period for each YA is the preceding calendar year ended 31 December.




 0 June each year. The basis period for each YA is the preceding accounting year ended 30 June.



 return to Main Tax Computation




 for social, recreational or leisure purposes.


 at which effective control is exercised over the affairs of the club or similar institution.



om members, the clubs or similar institutions are not deemed to be carrying on a business.
m dealings with non-members such as interest, rent and dividends.
m members, the clubs or similar institutions are deemed to be carrying on a business.
ductible operating expenses), in addition to the income from other sources derived from




ke a comparison of receipts between members and non-members.
ed to be carrying on a business.
 ith non-members. Thus, tax is payable on its rent, interest, gross dividend, (if any).




Maintenance & Strata Management Act 2004 to provide for the proper maintenance and operation of the building and the common areas.
shared amongst the subsidiary proprietors.


m the subsidiary proprietors. It is taxed in the same way as a club or similar institution.
o join together in order to further, promote and protect the common interest of the group.


 at which effective control is exercised over the affairs of the trade association.


 their receipts, by way of entrance fees and subscriptions, are from Singapore members who are entitled to claim
eceipts of income less tax-deductible operating expenses) and their investment income.


n to Main Tax Computation




usiness (trade) in the basis year.For Net deficit, please enter a minus sign (-) in front of the deficit figure.


n to Main Tax Computation




f income or where there are no other sources of income to offset the trade deficit;
urplus from trade and other sources of income to offset against capital allowances claimed during the YA.

 against the organisation's assessable income for the subsequent YAs.


n to Main Tax Computation




g POSB savings accounts with DBS Bank.


n to Main Tax Computation




need not be entered in the tax computation.


n to Main Tax Computation




ncurred in the production of rental income such as property tax, mortgage interest,
n to Main Tax Computation




n to Main Tax Computation




ter (IPC) in Singapore or the Singapore Government can be claimed.


oved donations on an accounting year basis. For details, please refer to IRAS's e-Tax Guide
 Income and Deduction of Approved Donations on an Accounting Year Basis".

n to Main Tax Computation




trade and other sources of income to offset against the donations claimed during the YA.
et against the organisation's chargeable income for a period of 5 years.

n to Main Tax Computation
building and the common areas.
Computation below is applicable for Chargeable Income up to $2,500

(I) Computation of Effective Tax Rate if taxed based on Part B rates as a club/association:

Chargeable Income                                                              $             -                A

Tax on first   $                -   @   6%

Tax payable                                                                    $             -                B


Effective rate of tax based on Part B rates = B/A =                                #DIV/0!                    Y


(II) Tax payable if taxed as a company:

Chargeable Income                                                       0      $                 -   0        A
Less exempt income (note 1)                                                    $                 -
Chargeable Income                                                              $                 -

Tax payable @ 18%                                                              $             -                C


Effective rate of tax = C/A =                                                      #DIV/0!                    Z

Note 1 - Computation of exempt income for normal chargeable income (exclude Singapore franked dividend)

On the first $10,000, 75% of the income                                -
On the next $290,000, 50% of the income                              NIL
Total exempt income                                                    -

(III) Effective rate of tax
As the effective rate of tax based on Part B rates (i.e. Y) exceeds the effective rate of tax if it were to
be taxed as a company (i.e. Z), the rate of tax applicable is limited to the effective rate of tax of Z%.
Therefore the tax payable is limited to $C (i.e. A x Z%), which is essentially the same as it were to be
taxed as a company.

EFFECTIVE TAX RATE                                                                 #DIV/0!


Note : the exemption is capped at $300,000
pore franked dividend)
Computation below is applicable for Chargeable Income from $2,501 to $10,000

(I) Computation of Effective Tax Rate if taxed based on Part B rates as a club/association:

Chargeable Income                                                                               0             A

Tax on first $    $          -                           YOUR INPUT
Tax on next $     0               @    6%                        -
Tax payable                                                                       #VALUE!                     B


Effective rate of tax based on Part B rates = B/A =                               #VALUE!                     Y


(II) Tax payable if taxed as a company:

Chargeable Income                                                      0      $                 -   0         A
Less exempt income (note 1)                                                   $                 -
Chargeable Income                                                             $                 -

Tax payable @ 18%                                                             $             -                 C


Effective rate of tax = C/A =                                                     #DIV/0!                     Z

Note 1 - Computation of exempt income for normal chargeable income (exclude Singapore franked dividend)

On the first $10,000, 75% of the income                               -
On the next $290,000, 50% of the income                             NIL
Total exempt income                                                   -

(III) Effective rate of tax
As the effective rate of tax based on Part B rates (i.e. Y) exceeds the effective rate of tax if it were to
be taxed as a company (i.e. Z), the rate of tax applicable is limited to the effective rate of tax of Z%.
Therefore the tax payable is limited to $C (i.e. A x Z%), which is essentially the same as it were to be
taxed as a company.

EFFECTIVE TAX RATE                                                                #VALUE!


Note : the exemption is capped at $300,000
nked dividend)
Computation below is applicable for Chargeable Income above $10,000

(I) Computation of Effective Tax Rate if taxed based on Part B rates as a club/association:

Chargeable Income                                                                                0            A

Tax on first $ YOUR INPUT                                 YOUR INPUT
Tax on next $ #VALUE!     @ YOUR INPUT                      #VALUE!
Tax payable                                                                        #VALUE!                    B


Effective rate of tax based on Part B rates = B/A =                                #VALUE!                    Y


(II) Tax payable if taxed as a company:

Chargeable Income                                                       0      $             -       0        A
Less exempt income (note 1)                                                    $             -
Chargeable Income                                                              $             -

Tax payable @ 18%                                                              $             -                C


Effective rate of tax = C/A =                                                      #DIV/0!                    Z

Note 1 - Computation of exempt income for normal chargeable income (exclude Singapore franked dividend)

On the first $10,000, 75% of the income                                -
On the next $290,000, 50% of the income                                0
Total exempt income                                                    -

(III) Effective rate of tax
As the effective rate of tax based on Part B rates (i.e. Y) exceeds the effective rate of tax if it were to
be taxed as a company (i.e. Z), the rate of tax applicable is limited to the effective rate of tax of Z%.
Therefore the tax payable is limited to $C (i.e. A x Z%), which is essentially the same as it were to be
taxed as a company.

EFFECTIVE TAX RATE                                                                 #VALUE!

Note : the exemption is capped at $300,000
pore franked dividend)

				
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