GSTV - Cash : $600
GSTV - Medisave : $450
Total Uncle8888 will receive in 2022 is $1,050
Assuming personal expenses in 2022 = $14,400 or $1,200 per month
GSTV can offset 7.3%
Assuming personal expenses in 2022 = $18,000 or $1,500 per month
GSTV can offset 5.8%
No wealth tax! No Capital Gains tax! I am OK!
LOL!
Posts
Uncle8888,
ReplyDeleteLol! So far the changes in personal income tax & property tax only affects the top 1%.
The GST is the biggie with a 28.6% increase.
I suspect by 2025, GST will be the 3rd biggest contributor to govt budget.
It's currently 4th, after NIRC, corporate income tax, and personal income tax respectively.
The other unspoken tax is inflation, which will probably be another biggie for the next couple of years. ;)
Lower spender-retirees with little or no earned income will continue to enjoy no tax status. Say NO to wealth tax, capital gains and dividend income tax!
DeleteCW,
DeleteWealth tax, even if it targets the top 5%, it won't affect us - if its just limited to personal income and property tax ;)
But dividends and capital gains tax... It affects everyone and anyone who are on the Earn More path...
Even retirees with ZERO personal income :(
But that's only if big daddy when full retard "socialist" to pre-empt the Opposition to continue to stay in power forever and ever.
I mean who doesn't like "freebies" during election time?
Somebody has to pay for "free"...
Then again, if big daddy taxes to pay for "socialist" programmes, its not so bad. It when they bring out the printing press...
Look out Savers!
Uncle8888,
DeleteWith the aged:working population ratio going the wrong way, we have to be mentally prepared for dividend & capital gains taxes eventually. ;)
It's not just "bleeding heart" ... as the aged form a increasing portion of the voter base, it's to ensure continuing voteshare to stay in power.
The consolation is that it'll probably not be so soon & it'll start small. 🤞🤞
Spur,
DeleteLOL!
Both of us have our eyes on the politics angle when it comes to investing/trading ;)
I wonder how many long term retail "investors" ever bother?
Definitely not the "passive" ones!
when I started stock investing in early 1980s, dividends were taxable. So were interests accrued in the bank accounts! Real pain in the neck in filing the annual income tax form (those were days when everything was done "manually"). One full circle if these were re-introduced. Probably not.
ReplyDeleteCapital gain tax for stocks (probably for "fairness" will cover all other investment instruments such as bonds, crypto, gold, currency trading, etc.) also unlikely. Capital gain tax, if introduced, will probably for big ticket item such as investment property. Many countries have such tax, kena when I sold my NZ property recently (15%). UK has similar tax, but for transaction above a threshold. Luckily below the threshold when I sold my UK property a few years ago.
Both my own stay & investment properties were impacted by the recent property tax revision, but bearable. Biggest wealth tax concern is (property) inheritance tax (likewise common in many countries) , hope this is not introduced during my lifetime.
Mai lah. Market will crash if they introduce capital gain and dividend tax. Might as well invest in US and HK. SG Market is only attractive for dividend. So better think twice...
ReplyDeleteI still remember the dividend tax & bank interest tax. The only bank to be exempted from interest tax was POSB, back in the days when it was still fully owned by MOF (that's why olden days POSB interest lower than other banks ;) ).
ReplyDeleteWith widespread computerisation & real-time reporting, it's a breeze for IRAS to know each person's dividends & bank interests. You won't even need to report ... IRAS will tell you how much you received last year & tax accordingly LOL. It'll be even more transparent as financial networks go onto the blockchain.
With CGT, there'll be mechanisms for tax loss harvesting where a certain amount of losses can be used to offset the profits. CGT is applied to anything that's an investment, so stocks, bonds, properties, certain intellectual properties etc. Singapore will likely impose a higher property seller stamp duty before having CGT.
We used to have inheritance tax until Feb 2008. In the old days, not many S'porean multi-millionaires & billionaires, so this tax didn't bring in that much moolah. With Sinkies getting richer & richer however ... hoho!
But my suspicion is that these will be still many years off.
Maybe we can ship more to JB & further delay taxes LOL!
https://www.internationalinvestment.net/news/4034922/inheritance-tax-cards-singapore-mas-chief
ReplyDeleteinheritance tax already on the cards .....(MAS Chief), another flip flop in policy