Uncle Sam's Calling!

Dear all,

It's that time of the year again! Yes, time to file your taxes! (My colleague just commented that it didn't feel that long since the last time she paid taxes).

Here are some infomation from IRAS which may be of good use. It may look a bit technical and complicated, but in order not to distort any wordings or meanings, the information has been pasted wholesale from the IRAS website.

Tax Rates for Resident Individuals

For more guidance on how to file your taxes, you may wish to visit: IRAS: How to calculate my tax .

Do note that the tax treatment differs for Employees and Self Employeds.

For example, income derived by a self-employed is assessable as trade income and he can claim trade losses against his trade income. An employee cannot claim losses and capital allowances against his employment income.

To check what is taxable and what is not, click here.

There are also a number of reliefs that you can file to save on your taxes. They can be found here.

Robert Kiyosaki (author of Rich Dad Poor Dad) often recommends people to move from being an Employee to being a Business Owner, and one of the reasons is that business owners generally get much better tax treatment (which means paying lesser!).

Quoting Mr Kiyosaki from his book "Rich Dad's Guide to Becoming Rich... Without Cutting Up Your Credit Cards" (which I strongly recommend, by the way), he said:
"... the reason so few people become wealthy from the employee quadrant is because the tax laws are the hardest on the employee quadrant."
Consult a qualified tax consultant if you have some taxing questions (pun intended) on how to properly file your taxes. I have seen so many people paying more that they should simply because they don't know what they're doing.

You may also send me an email @ cjhfinance@gmail.com and I'll try to help you as best as I can. :)