Cost of Living

Question 1

What is Income Tax?

Answer 1

It is tax that is based on the money that you earn.

Question 2

What is the money collected in taxes used for?

Answer 2

The givernment uses the money to pay for the services provided by the government such as the defence, security, building of roads, public education.

Question 3

Does everyone pay income tax?

Answer 3

No, if your income is low or have no income. In fact the money collected is used to help people with low income.

Question 4

Does everyone pay the same income tax rate?

Answer 4

No, in general, those who earn more are required to pay at a higher rate.

Question 5

Based on the income tax table

If you earn $15000, are you required to pay tax?

Answer 5

No

Question 6

Based on the income tax table

At what income, do you start paying tax

Answer 6

When you earn more than $20000

Question 7

Based on the income tax table

If you income is $25,000 what is the rate that you pay?

Answer 7

2%

Question 8

Based on the income tax table

If you income is $25,000 how much income is taxed?

Answer 8

$25000 - $20000 = $5000

Question 9

Based on the income tax table

If you income is $25,000 how much income do you pay?

Answer 9

2/100 * $5000 = $100

Question 10

Based on the income tax table

If you income is $50,000 how much tax do you pay for the first $40000?

Answer 10

$550

Question 11

Based on the income tax table

If you income is $50,000 what tax rate do you pay for the amount above $40000?

Answer 11

7%

Question 12

Based on the income tax table

If you income is $50,000 what amount is tax at 7%?

Answer 12

$50000 - $40000 = $10000

Question 13

Based on the income tax table

If you income is $50,000 how much tax do you pay?

Answer 13

$10000 * 7/100 + $550

= $700 + $550

= $1250

Question 14

What is Good Service Tax (GST)?

Answer 14

It is the tax that you pay when you purchase goods or service at companies that charge GST

Question 15

What is GST rate in Singapore?

Answer 15

7%

Question 16

What is GST amount for a product that cost $50

Answer 16

$50 * 7/100 = $3.50

Question 17

What is the percentage cost of a product inclusive of GST that cost $50

Answer 17

100% + 7% = 107%

Question 18

What is the cost of a product inclusive of GST that cost $50

Answer 18

$50 * 107/100 = $53.50

Question 19

A television inclusive of GST cost $2400

What does inclusive mean

Answer 19

It means that cost has already included the GST amount

Question 20

A television inclusive of GST cost $2400

What percentage is $2400 to the original amount

Answer 20

107%

Question 21

A television inclusive of GST cost $2400

What is the original cost without GST

Answer 21

$2400 * 100/107 = $2242.99

Question 22

A television inclusive of GST cost $2400

What is the GST amount?

Answer 22

$2400 - $2242.99 = $157.01

Question 23

What is service charge?

Answer 23

It is a tax that is paid usually to a restaurant for the service provided

Question 24

What is service charge at a restaurant?

Answer 24

10%

Question 25

When we eat at a restaurant, how do we calculate the total bill which includes the service charge and GST

Answer 25

We first calculate the bill including the 10% service charge

We next include the 7% GST to the above bill

Question 26

When we eat at a restaurant, can we just add the 10% and 7% making it 17% and then include this to the bill?

Answer 26

No, the amount will not be the same.

Question 27

A bill at a restaurant cost $90.

Calculate the service charge?

Answer 27

$90 * 10/100 = $9

Question 28

A bill at a restaurant cost $90.

Calculate the bill to include the service charge?

Answer 28

$90 + $9 = $99

Question 29

A bill at a restaurant cost $90.

Calculate the GST amount?

Answer 29

$99 * 7/100 = $6.93

Question 30

A bill at a restaurant cost $90.

Calculate the final bill to include the GST?

Answer 30

$99 + $6.93 = $105.93

Question 31

What is 117% of $90

Answer 31

$90 * 117/100 = $105.30

Which is not the same as the final bill of $105.93