It’s that time of the year again for all Singaporeans to file their income taxes, and always note that you are filing income taxes for the preceding year, but the year of assessment is always the year AFTER the year in question. Confused? YA 2011 refers to income drawn in calendar year 2010, and YA 2012 will refer to income drawn in calendar year 2011, and so on. I realized that some people get confused over this, so it’s better to clarify it early in this post. The rest of the post will deal with common issues with tax filing, some confusion over common deductions and also discuss the current tax regime and the changes introduced by Budget 2011.
Before I begin, here are some very important acronyms and terms:-
ECI = Estimated Chargeable Income (this represents the income subject to taxation after deduction of all reliefs from earned and ......