What is Income Tax?

It is tax that is based on the money that you earn.

What is the money collected in taxes used for?

The givernment uses the money to pay for the services provided by the government such as the defence, security, building of roads, public education.

Does everyone pay income tax?

No, if your income is low or have no income. In fact the money collected is used to help people with low income.

Does everyone pay the same income tax rate?

No, in general, those who earn more are required to pay at a higher rate.

Based on the income tax table

If you earn $15000, are you required to pay tax?

No

Based on the income tax table

At what income, do you start paying tax

When you earn more than $20000

Based on the income tax table

If you income is $25,000 what is the rate that you pay?

2%

Based on the income tax table

If you income is $25,000 how much income is taxed?

$25000 - $20000 = $5000

Based on the income tax table

If you income is $25,000 how much income do you pay?

2/100 * $5000 = $100

Based on the income tax table

If you income is $50,000 how much tax do you pay for the first $40000?

$550

Based on the income tax table

If you income is $50,000 what tax rate do you pay for the amount above $40000?

7%

Based on the income tax table

If you income is $50,000 what amount is tax at 7%?

$50000 - $40000 = $10000

Based on the income tax table

If you income is $50,000 how much tax do you pay?

$10000 * 7/100 + $550

= $700 + $550

= $1250

What is Good Service Tax (GST)?

It is the tax that you pay when you purchase goods or service at companies that charge GST

What is GST rate in Singapore?

7%

What is GST amount for a product that cost $50

$50 * 7/100 = $3.50

What is the percentage cost of a product inclusive of GST that cost $50

100% + 7% = 107%

What is the cost of a product inclusive of GST that cost $50

$50 * 107/100 = $53.50

A television inclusive of GST cost $2400

What does inclusive mean

It means that cost has already included the GST amount

A television inclusive of GST cost $2400

What percentage is $2400 to the original amount

107%

A television inclusive of GST cost $2400

What is the original cost without GST

$2400 * 100/107 = $2242.99

A television inclusive of GST cost $2400

What is the GST amount?

$2400 - $2242.99 = $157.01

What is service charge?

It is a tax that is paid usually to a restaurant for the service provided

What is service charge at a restaurant?

10%

When we eat at a restaurant, how do we calculate the total bill which includes the service charge and GST

We first calculate the bill including the 10% service charge

We next include the 7% GST to the above bill

When we eat at a restaurant, can we just add the 10% and 7% making it 17% and then include this to the bill?

No, the amount will not be the same.

A bill at a restaurant cost $90.

Calculate the service charge?

$90 * 10/100 = $9

A bill at a restaurant cost $90.

Calculate the bill to include the service charge?

$90 + $9 = $99

A bill at a restaurant cost $90.

Calculate the GST amount?

$99 * 7/100 = $6.93

A bill at a restaurant cost $90.

Calculate the final bill to include the GST?

$99 + $6.93 = $105.93

What is 117% of $90

$90 * 117/100 = $105.30

Which is not the same as the final bill of $105.93