Eric Tan — Thu, 27 Mar 2008 06:29:11 +0000

Had a coffee break with Kitchi yesterday. She summarized it quite precisely. 哲學啊~~

Kitchi：“今天我在我报看到一�?版，2005年有一个人骑脚车撞上路上的A Frame，全身瘫痪…Koh Brothers (contractor) 赔了800�?�给他…�?
TSB：“Ei？�? 为什么是contractor赔，�?是LTA咧？�?�?
…�?略…
Kitchi：“哦，我在想噢，800�?�咧，差�?多是工作20几年的总薪水…�?
TBS：“Er？�?所以你是说工作20几年就等於瘫痪啦�?�?
Kitchi：“Ei？�?真的，�?这样讲应该也是�?�以。20年，大概就瘫痪了。�?

Summary for non-Chinese readers (Do I have any?) – A cyclist met an accident, paralyzed and received compensation of 800K. If you make 30K ~ 40K a year, 800K is about 20 years. So, 20 years of working = paralyzed?

TSB：“我之�?在报纸看到�?税的�??大方法，例如和父�?�?��?，供养父�?etc …结果�?�现回扣最多的是第二个孩�?�?
Kitchi：“…�?
TSB：“如果你有第二个孩�?，税务局给的回扣是20�?�，是需�?交税直接扣掉20�?�；而�?是从你的income里�?�扣20�?��?�?�算该付的所得税�?
Kitchi：“是么？�?
TSB：“�?供养父�?，好�?�?��?�以从income里�?�扣8�?��?算该付的所得税�?
Kitchi：“Ei？�?�?
…�?略…
Kitchi：“所以hor …两个�?�亲的价值竟然低于第二个孩�?�?

Summary: If you stay and take care of both your parents, you get 8K relief from tax. If you have 2nd kid, you get 20K rebate. So 2nd kid is greater than 2 parents?

A quick check bring me to a more precise number, 10K (for both parents). and 10K for 2nd kid, 20K each for 3rd and 4th kid.

Well, you might think, looking after 2 parents worth half of your 2nd kids (not my point of view, purely based on IRAS relief and rebates), I’m sorry you are wrong.

Case A: no relief nor rebates: annual income 20K or less pay no tax.
Case B: looking after 2 parents: annual income 20K + 10K = 30K or less pay no tax.
Case C: Give birth to 2nd kid: annual income 120K or less pay no tax

tax – rebate = 0
tax = first 80K tax + next 40K tax = 4300 + 5700 = 10K (check here for actual rates)
rebate = 2nd kid rebate = 10k

i.e. 120K or less pay no tax.

Hmm… 30K… 120k.. hmm.. so parents worth 1 quarter of 2nd kid?

Think again… 20K is the no tax zone…

30K – 20K = 10K
120K – 20K = 100K

Maybe, from tax relief point of view, your parents worth just 1/10 of a second kid…

Well, that’s not my point of view. Just some stupid calculation.

rice bowl » tax