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.
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.
Comments
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