Tax reduction $3000
(50,000 x 2% + 33,349 x 6% =3,000.94 = $3,000)
IRD truncates
Estimated income to generate tax effect
= ($50,000 + $33,349 + $132,000) / 95%
= $226,684 ($18,890/month)
2023 wage median $19,800
差唔多啦
壹Butt勾簫2025-04-24 09:23:33
IRD did not show the number of taxpayer earning $1 - $132,000. In fact, IRD doesn’t require employers to report income for individuals earning less than the basic allowance.
IRD’s figures are just a snapshot of the whole picture.
In general, IRD issues Tax Return - Individuals to taxpayers with income more than the basic allowance. Persons earning less than the basic allowance will normally receive no Tax Return. However, if the below criteria is met during the year of assessment, a Tax Return will still be issued:-
1. A person had property income from his solely owned property;
2. A person had a sole proprietorship business;
3. A person had rental income from jointly owned property; and/or partnership business and he wishes to elect Personal Assessment;
4. A person who earned salaries income less than the basic allowance but had property/ business income and wishes to elect Personal Assessment;
5. A married person whose wages was less than the aggregate amount of deduction and allowance to which he is entitled, but he wishes to be assessed under joint assessment with his spouse (In layman term, that person can transfer the “negative balance) to offset his spouse income)
Not all below-basic-allowance salaries earner report income to the IRD. Even if a person had income but his spouse did not, unless that person had property/business income, IRD will only issue tax return if he earned more than married person’s allowance.