Here is the summary of increases for you high earning Whales.
Source: ChannelNews Asia, via Facebook |
Or get your accountants to do it.
Or if you like, you can move to HK...
HK Tax Rate
Extract:
Year of Assessment 2008/09 to 2015/16*
Net chargeable Income | Rate | Tax | |
---|---|---|---|
$ | $ | ||
On the First | 40,000 | 2% | 800 |
On the Next | 40,000 | 7% | 2,800 |
80,000 | 3,600 | ||
On the Next | 40,000 | 12% | 4,800 |
120,000 | 8,400 | ||
Remainder | 17% |
Tax Reduction
Year of Assessment
|
% of Tax Reduction
|
Maximum Per Case ($)
|
Applicable Tax Types
|
---|---|---|---|
2008/09
|
100%
|
8,000
|
salaries tax and tax under personal assessment
|
2009/10 & 2010/11
|
75%
|
6,000
|
salaries tax and tax under personal assessment
|
2011/12
|
75%
|
12,000
|
salaries tax, profits tax and tax under personal assessment
|
2012/13 & 2013/14
|
75%
|
10,000
|
salaries tax, profits tax and tax under personal assessment
|
2014/15*
|
75%
|
20,000
|
salaries tax, profits tax and tax under personal assessment
|
* Legislative
amendments are required for implementing the tax measures as proposed by
the Financial Secretary in the 2015-16 Budget.
Standard Rate
Year of Assessment | Tax Rate |
---|---|
2008/09 onwards* | 15% |
Comparison
Singapore doesn't tax the first $20,000 of chargeable income tax. HK taxes from the first dollar at 2%. For the first HK$40,000. Or $800.
SG taxes 2% for the $10k after the first $20k, and 3.5% for the next $10k, So the tax on the first S$40k is $550.
HK taxes the next HK$40k at 7% or $2800. SG is the same, but because of the initial lower rates, at $80k, the HK resident pays HK$3600, whereas the SG resident would pay S$3350.
For the next $40k, HK tax is 12%. SG is 11.5%. For $120k, HK tax is HK$8400, SG tax is S$7950.
After that HK charges a flat 17% for income over HK$120k. But HK$120k is only about S$21k. Which means that while their topline tax rate is lower than SG, they tax EVERYONE, and from the very lowest base, from the first HK$40k. which is about S$7,000. That's $7k annually.
One report from 2013 has the HK median family income at $22,000. Assuming a two income family, that means practically half the tax residents will hit the 17% income tax rate.
In SG only the top 5 - 10% will actually hit 17% tax rate.
Things to think about before I move to HK.
[Note to self: Cancel Cantonese lessons!]
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