CONTENTS

TOPIC SINGAPORE PAGE NO
1. BASIC PRINCIPLES OF TAXATION IN SINGAPORE 3-4
2. UNDERSTANDING THE SINGAPORE TAX SYSTEM 4-6
3. TAX RATES 6
4. TAX ADMINISTRATION AND COMPLIANCE 7

NEWZEALAND
5. TAXATION IN NEWZEALAND 7-8 6. INCOME SUBJECT TO TAX 8-9 7. TAX RATES 9-11 8. TAX ADMINISTRATION AND COMPLIANCE 11

1.

BASIC PRINCIPLES OF TAXATION IN SINGAPORE
The scope of taxation in Singapore 1. Income tax is charged on income from an employment exercised in Singapore and on any income accrued in or derived from Singapore, regardless of the tax residency of the individual. The taxability of employment income depends on where the services are performed, not where the payment is made or where the employer is resident.
2. With effect from 1 January 2004, income derived from sources outside Singapore, even if received in Singapore (except for income received through a partnership in Singapore), is exempt from Singapore tax.
The tax year
3. In Singapore, an individual's income of the preceding calendar year ('tax year') is assessed to tax in the following calendar year ('Year of Assessment'). For example, if an individual commenced his or her employment in Singapore in April 2010, the employment income derived in the period April to December 2010 will be chargeable to tax in Year of Assessment (“YA”) 2011.
Methods of calculating tax
4. Resident individuals are entitled to personal reliefs and are subject to graduated tax rates ranging from 0% to 20% .
5. Employment income derived by non-residents is subject to tax at the higher of 15% (with no personal reliefs) or at graduated tax rates (with personal reliefs). Non employment income derived by non-residents is subject to tax at a flat rate of 20%.
Husband and wife
6. The income of a husband and wife is