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NEW INDIVIDUAL INCOME TAX REGIME
Reduction in individual income tax rates
- With effect from YA2002, income tax rates
of all income bands will be cut. The top marginal personal tax
rate will be reduced from 28% to 26%.
- The first $7,500 of chargeable income
will be exempted from tax.
- The $500 GST-related rebate will be reduced
to $250 in YA2002.
- All individual taxpayers will pay less
tax. The majority of taxpayers will pay at least 25 percent
less tax than what they are paying now.
- The new income tax structure is as follows:
|
1-7,500 |
2 |
0 |
|
7,501-20,000 |
5 |
3 |
|
20,001-35,000 |
8 |
6 |
|
35,001-50,000 |
12 |
9 |
|
50,001-75,000 |
16 |
12 |
|
75,001-100,000 |
20 |
15 |
|
100,001-150,000 |
22 |
18 |
|
150,001-200,000 |
23 |
21 |
|
200,001-400,000 |
26 |
24 |
|
>400000 |
28 |
26 |
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Purpose:
- Lower the tax burden of workers
- Encourage individual effort and enterprise
- Help Singapore retain its local talent and attract new foreign
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