do you guys actually invest first?

[VinSnr]

Hmm... then why was I asked for gains from my investments in my Income Tax form?

Those are dividend gains....not capital gains.

But if you reinvest your dividends, they can't touch you.

[VinSnr]

I'm just curious since I don't have to pay income tax yet ... how is income tax calculated? Is there a "rate" sheet? Any online reference? All for curiosity's sake ...

for your chargeable income (that is income minus all deductions)

first 20K, 0%
next 10K, 4%
next 10K, 6%
next 40K, 9%
next 80K, 15%

Most people will fall under the 6-9% bracket. Some people tell me they can't even save 10% of their salary a month and here we are giving away 6-9% of our salary every month to the government. Can you see now how important it is to reduce our income tax?

[Tachyon]

Hmm... then why was I asked for gains from my investments in my Income Tax form?

Those are dividend gains....not capital gains.

But if you reinvest your dividends, they can't touch you.

But ultimately you have to realize your gains right? Then they will tax you?

[Tachyon]

Yes, but our tax is still better than most countries. Netherlands is 50% of total income!

[VinSnr]

Hmm... then why was I asked for gains from my investments in my Income Tax form?

Those are dividend gains....not capital gains.

But if you reinvest your dividends, they can't touch you.

But ultimately you have to realize your gains right? Then they will tax you?

Yes, but don't forget why one do investment. It's for retirement. By then, you have no more income (not working anymore) so they can't tax you anymore. And when you realise your gains, they can't tax you too...those are capital gains....not income.

They only time they will tax you is when you die. They will tax you estate duty. So most millionaires will donate their money or give friends, siblings, before they die.

[VinSnr]

Yes, but our tax is still better than most countries. Netherlands is 50% of total income!

Yeah...but don't forget their salary is higher too and they have unemployment benefits. We don't have such thing!

[acc]

A fresh grad in CA probably pay about 30%+ in income tax, plus the sales tax is another 7%+ I would rather forgo unemployment benefits rather than face such exorbitant tax rates... Really buay song to be taxed so much So the income tax we pay in Sg is really "peanuts" compared to that in most other countries. My investments are really just that, rather than as a means to pay less tax.

cheers
cc

[VinSnr]

A fresh grad in CA probably pay about 30%+ in income tax, plus the sales tax is another 7%+ I would rather forgo unemployment benefits rather than face such exorbitant tax rates... Really buay song to be taxed so much So the income tax we pay in Sg is really "peanuts" compared to that in most other countries. My investments are really just that, rather than as a means to pay less tax.

cheers
cc

but dun forget that here has a lot of other "indirect taxes" like COE, ERP, and other transport charges. In US, get a cheap car, drive as many years as you want, cheaper petrol, and you save a bundle on transport. And parking for free at the roadside is common.

Here, even if you dun buy car, transport is not cheap. And that add to your "taxes"

[jermng]

What are the stuff that are tax exempt and what are the stuff that are not? Any where to find more details? Just started investing and curious bout these stuff before I actually have to pay something ...

[cataclysm]

didn't say save...i say invest. Saving your money in the bank is the worst thing you can do to your money over a long haul.

I like to show this example, how important one should start investing early.

yep, fully agree