The objective of tax planning is to arrange transactions to minimize tax legally.
Tax evasion, on the other hand, involves the use of unlawful methods to eliminate tax. It is illegal and punishable by law.
The Basics (Who, What, When, Where, Why, How?)
(1) Who?
Tax residents include:
- A Singapore citizen or permanent resident who resides permanently in Singapore;
- A foreigner who has worked in Singapore for 183 days or more.
(2) What?
- Total Income: Includes income from business, salary from employment and rental income.
- Assessable Income: Total income less deductible expenses and donations.
- Chargeable Income: Assessable income less qualifying reliefs.
- Tax Rebate: The reduction of the amount of tax payable. Read more...
