Question

Kami Wong, born 1969, is a Singapore citizen and the Chief Executive Officer of a Singapore listed company. Her husband, John Chan, a Singapore citizen born in 1968, is an equity partner of the Singapore office of an international law firm.
Kami and John have two children – Jacob (son aged 15) and Isabella (daughter aged 10) and both are Singapore citizens, studying full-time in Singapore schools.
During the year ended 31 December 2019, Kami and John derived the following income:

Kami $ John $ 350,000 190,000 50,000 10,000 30,000 40,000 Share of income from the partnership Salaries and bonuses Dividend income from Singapore companies Dividend income from Australian companies (received in Singapore in 2019) Interest income on fixed deposits from Singapore banks Rental income from a Singapore residential property (net of deductible expenses) 10,000 30,000 5.000 30,000

Further points to note:
- The couples have to maintain Kami’s handicapped sister who lives in Singapore and they spent $3,000 in 2019 for such purposes.
- Kami’s monthly salary was $10,000 and in 2019, she was awarded a non-contractual bonus of $70,000.
- At times, John’s mother who stays in her own residence at Bedok will go to the couples’ residence to look after their children especially when the couples travel overseas.
- In 2018, John made a voluntary CPF contribution of $30,000 to his CPF account.

Required:
Analyse and advise Kami and John of their Singapore income tax liabilities for Year of Assessment 2020 through the income tax computations demonstrating the maximum tax saving opportunities available to them. State your basis and show all workings. Make any relevant assumptions if the facts are not clear or you may require additional information before you are in the position to advise Kami and John.

Answer 1

INCOME TAX CALCULATOR FOR TAX RESIDENT INDIVIDUALS YEAR OF ASSESMENT 2020, FOR THE YEAR ENDED DEC 2019 JOHN CHAN KAMI nown INCOME Employment Income 190,000 Less Employment expenses NET Employment Income Add i other expenses Income Income from fartnership form 3,50 1000 Dividend GO,000 70,000 fixed deposit interest 10,000 Rontal Income 30,000 30,000 Total income (Assessable income 450,000 12,95.000 Less Personal Relief Handicapped sister 3,000 Qualifying child Relief ($41000 Per child shooed equacy 41000 4,000 working Mother child Relief (15% for ist $20% for and child) 76. doo (AS $ 80000 is Maximum relief under Personal dellaf so $76.00 chargeable Income 4:43,000 2115.000 Tax payable chadgeable Income 24000 Less : pasen Hood Tax Rebate ($Soon Faually shared) 2,500 2,500 Net Tax payable Grillo 21soo 71, Gio