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LoginLet's compare Income Taxes of Diff Countries
7 posts
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Just wondering if others can fill up some gaps for me on income tax.
Our govt have always boasted that our income tax is one of the lowest in the world. And they always tell us that other countries like those in Europe, or Australia, have taxes like 30% or 40%.
But I wonder are we naive to think that that is the entire truth?
There are many aspects to consider:
Staggered tax scheme.
Those countries that are being compared to probably do have staggered tax levels like us. For example, if your taxable income is $20,000 then your tax at that level is 5%, only the top group will bear the max 30% or 40%.
I wonder if Singaporeans are naive to think that these countries income tax is a flat 30% or 40% on everyone.
Reliefs.
I also wonder if anyone thought about the possibility that other countries relief might be much higher than ours. Our reliefs are actually quite limited.
Parents relief is $3500 or $5000 (Our parents expenditure is only $291.67/mth or $416.67 /mth).
Wife relief (if not working) is $2000 (Our poor wife expenditure is only $166.67/mth)
These reliefs have been there since the 'beginning of time'. They have not been adjusted even though the cost of living has gone up so much over the years.
In other countries, their reliefs might be higher and may have many more types of reliefs that you can claim. At the end of the day, even though their tax is 30 or 40%, they might be paying lesser taxes than Singaporeans.
And they probably benefit more from the welfare given to citizens. And their welfare definitely beats what our govt gives to us.
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Actually I know since I have already done my own background research. Merely just would like to see if anyone else have done their own research.
I just find it that many Singaporeans are naive and are duped by the govt to think that other country's tax is a flat 30% or 40%.
We pay the lowest taxes?
Its more a lie.
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