SG Income
Tax Progressivity Modeller
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This income tax progressivity modeller
is designed to help users understand Singapore's income tax rate schedule, by
allowing marginal tax rates at each chargeable income band to be adjusted to
achieve the following goals:
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1)
Increase income tax revenues by a certain target amount;
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2)
Increase the level of tax progressivity by adjusting marginal tax rates
differentially.
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The default setting is based on the
income tax rates schedule from Year of Assessment 2020. Net income tax
assessed for the year amounted to S$12.9 billion, on a resident taxpayer base
totalling 1.96 million individuals.
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Using the modeller:
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A) Increase the marginal tax rates in
each chargeable income band using the arrow buttons. Each adjustment will increase or decrease
the shortfall to the targeted additional revenue, and will also have an
impact on the progressivity (or otherwise) of the income tax system.
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B) You may use the three pre-set scenarios, by pressing on either of the three Scenario buttons.
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Scenario 1 shows an adjusted income tax rate schedule that raises marginal
tax rates reasonably uniformly across chargeable income bands, achieves an
additional revenue target of $3.1 billion, but results in reduced
progressivity.
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Scenario 2 shows an adjusted income tax rate schedule that raises marginal
tax rates for chargeable income bands above $160,000, with the largest
increases for the highest income brackets (39% marginal tax rate for
chargeable income in excess of $320,000), achieves the additional revenue
target of $3.1 billion and results in higher progressivity.
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C) Reset the marginal tax rates to the default Year of Assessment 2020 levels
using the button labelled "Reset to current
rates".
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