Singapore Budget 2009 – Personal Income Tax
Personal Income Tax Rates and Rebate
Surprisingly, there was no reduction proposed in the personal tax rates for this year i.e. the top marginal tax rate is still maintained at 20%.
Nevertheless, the Minister proposed to give a one-off tax rebate of 20%, capped at $2,000, to all resident taxpayers for the YA 2009, similar to the rebate given in the previous year. This capped deduction will provide most benefit to those earning around S$150,000 per year.
Installment assistance
Currently, the installment scheme for settlement of personal income taxes is over a maximum of 12 interest-free monthly installments.
To help ease resident taxpayers’ cash flow, who either lost their jobs in 2008 or do so in 2009 because of the current economic climate, they will be allowed to settle their personal income taxes for YA 2009, upon application, in monthly installments of up to 24 months.
Removal of Income Tax on Net Annual Value (NAV)
Currently, the NAV of a property which is used by the owner or on behalf of the owner for residential purposes is taxable with an annual exemption threshold of up to $150,000 allowed on the NAV of one owner-occupied property only. Any excess of NAV above this threshold is subject to income tax.
The Minister proposed that the income tax on NAV of all residential properties will be removed with effect from YA 2010.
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