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Company tax rate is 17% but govt is giving a 30% rebate cap at \$30 000. Effectively, your tax rate is < 17% New!

YA 2013, YA 2014 and 2015   Companies will be granted a  a 30% Corporate Income Tax (CIT) Rebate capped at \$30,000 Examples : The following shows 4 examples. For an assessable income of \$600k, you hit the \$30 000 tax rebate cap and your effective tax rate is 11.9%. which < 17% Even when the assessable income hit \$3 m, the effective tax rate is 16 16%, %, still < 17%

Tax rate

17%

Asse Assess ssab able le Inc Income ome A Tax Tax Befor Before e Rebat Rebate e B=1 B=17%*A %*A Re ba bate

Breakpoint \$600,0 ,00 00 \$102,0 ,00 00

\$750,00 ,000 \$127,50 ,500

\$30,600

\$30,000

\$30,000

\$30,000

\$30,000

30% C=30%*B

\$1,00 ,000,00 ,000 \$2,00 ,000,00 ,000 \$3,00 ,000,00 ,000 \$170,00 ,000 \$340,00 ,000 \$510,00 ,000

Tax pa paya yabl ble e

D=AA-B B

\$71,4 ,40 00

\$97,5 ,50 00

\$140,00 ,000

\$310,00 ,000

\$480,00 ,000

Effe ctive Tax Rate

E=D/A

11.9%

13.0%

14.0%

15.5%

16.0%

If your personal assessable income > \$320 000, the tax rate is 20%

From YA 2012onwards Charg rgea eab ble In Income Rate Ra te (% (%))

Gro Gr oss Ta Tax x Payable (\$ (\$)

First \$20,000 Next \$10,000

0 2

0 200

First \$30,000 Next \$10,000

3.5

200 350

0.7%

First \$40,000 Next \$40,000

7

550 2800

1.4%

F Niersxtt \$ \$8 40 0,,0 00 00 0

11-.5

3 43 65 00 0

4.2%

15

7950 6000

6.6%

First \$120,000 This websiteNstores ext \$data 40,0such 00 as

cookies to enable essential site irswell t \$1as 60marketing, ,000 functionality,Fas Nexand t \$ 4 0,000 You personalization, analytics. may changeFyour settings irst \$ 200,00at0 any time or accept the default settings.

17

13950  6800

8.7%

18

20750 21 600

10.4%

20

42 350

13.2%

Next \$120,000

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