2016: a crucial year

Financially, that is. It will be the year my permanent residency in Singapore is up for renewal and I'm almost certain that they will not renew it since I have not been working in Singapore for a few years before the renewal date.

So that will affect the tax rate on my income and property in Singapore...by a lot! Currently, my income is taxed on a tiered basis and so the effective rate is about 1% or even less. Property tax is 10%. After losing my PR, the income tax rate will be a flat 15% (so that's at least 15 times of current!) and the property tax is a flat 20% (double of current).

I estimated that the expected increased tax amount can be sufficiently covered by my dividend income but I cannot be certain. Who knows whether these tax rates will change in 2 years time. Hopefully dividend income will not decrease in future. So the best way is to just go through with it and observe the cashflow for at least a year before doing anything major. In the meantime, I'm trying not to increase my expenses unnecessarily.
2 Responses
  1. William Says:

    Increase your income?

  2. Jaded Jeremy Says:

    That's chiefly from savings that are invested in shares to provide dividends. So it's a slow process. Additional income from ad hoc actuarial projects