MR Wee,a singaporean who has been working in New York for the past 10 years, will be seconded to work in singapore for a three-year period commencing 1 january 2009.he has heard that the employer"s CPF contributions are not taxable and the contributions are fully deductible. furthermore,he intends to structure his compensation package such that his employer and himself would contribute CPF based on his annual salary of $120000 and bonus of $54000.
based on the statutory employee"s and employee"s CPF contribution rates at 1 january 2009 of 20% and 14.5%respectively ,the statutory and proposed CPF contributions are as follows: employee"s employer"s
statutory CPF contributions on: $ $
annual salary(4500x12x20%) 10800
(4500x12x14.5) 7830
bonus(max)[76500-（4500x12)]x20 4500
[76500-（4500x12)]x14.5 3263
total 15300 11093
proposed full CPF contributions on:
annual salary 24000 17400
bonus 10800 7830
total 34800 25230
you are required to write a brief report to Mr Wee on the deductibility of the employee"CPF contributions, the taxability of the employee" CPF contributions and the tax consequences of his proposed CPF arrangement.
发表于 2010-8-23 16:49
|