Make more money, do good and pay less income tax.

I filed my income tax return for the Year of Assessment 2013 (YA 2013) online.

Although I received more income last year, I will be paying less income tax for YA 2013 compared to the year before. Incredulous? How could this be? Could it be true?

Regular readers would know that a large portion of my income is passive and non-taxable. So, to pay less income tax for YA 2013 compared to the year before, did my earned income from employment decline? Nope, it remained more or less the same as the year before although the probability that it could decline in future exists.

The lower than expected estimated income tax for YA 2013 is because of donations I made to 6 charitable organisations last year which enjoy 2.5x tax deduction and the 30% personal income tax rebate I am eligible for from the government.

Of course, I am pleased to be paying less tax but I am happier still that I am doing good with my donations to several recognised charities in Singapore.

If we can afford it, let us be charitable and donate to the less privileged. We will also pay less income tax in the process. Everybody wins. Sounds good, doesn't it?

If you are wondering about the personal income tax rebate, the following table is taken from IRAS:

Age as at 31 Dec 2012	Personal Income Tax Rebate for the Year of Assessment 2013
Below 60 years	30% of tax payable, subject to a cap of $1,500
60 years and above	50% of tax payable, subject to a cap of $1,500

What I have also been doing every year is to contribute to my SRS account to the maximum amount allowed. This has been a big help in reducing the amount of income tax payable. I would encourage anyone who is currently paying income tax and who does not have an SRS account to consider starting one.

So, is it possible to pay less income tax while making more money and doing good? Yes, of course!

If you tell your family and friends about this and they don't believe you, share or like this page and tell them that if AK71 can do it, so can you! Believe in yourself.

Related posts:
1. Counting our blessings.
2. SRS: A brief analysis.
3. 2012 full year passive income from S-REITs.

Marco Polo Marine: Shipyard and Indonesia.

Why did Marco Polo Marine start a shipyard in 2005?

CEO: The shipyard is a support business with ship repair, conversion and maintenance... As we continue to grow..., we require more vessels... hence the natural progression into shipbuilding.

... the shipyard will remain focused on ship repair and conversions... the ship repair business is one that is seasonal but non-cyclical. If you own a ship, you are required to conduct mandatory servicing and maintenance.

Keppel Corp and Sembcorp Marine focus on shipbuilding and ship repairing of the larger vessels. We on the other hand target the medium and smaller vessels that take up most of the population of the ships around this region.

What are the prospects for Marco Polo Marine's core business, tug and barge operations, in Indonesia?

CEO: Indonesia produces over 200 million tonnes of coal every year... 36 new plants are currently being built in Indonesia and they have the combined capacity to generate over 20,000 megawatt of electricity.

... there are over 100 independent power plants in Indonesia, 80 to 90 additional tons of coal will be needed domestically in the near future.

How are you going to move the coal to the power plants? We need more tugs and barges because large vessels cannot manoeuvre around the rivers of the Indonesian mine sites... the demand for Indonesian flagged vessels will remain strong at least for the next five to six years.

Source: Marine Money Offshore.

Related post:
Marco Polo Marine: The CEO speaks.