Taxes are another topic that all working Singaporeans will have to deal with eventually, while not fully applicable to those just starting out their careers with smaller incomes, it is good to know and will be useful down the line submitted by csm133 to singaporefi [link] [comments] This post is targeted at young adults and covers the basics about income taxes, with a focus on that of employees as compared to self-employed individuals Full Disclosure: I am not a tax agent or certified professional, for more complicated matters please seek the assistance professional and do your own due diligence If there are any things I missed out please let me know in the comments below Singapore's Tax StructureSingapore has a progressive tax structure, with those earning more paying a larger proportion of their income There is a misconception that I have heard I didn't accept the pay raise because that would put me in a higher tax bracket so I would have to pay more taxThat is incorrect, here is an example Mr A had a chargeable income of $20K and then had a raise bringing his pay to $30K If the statement was true, the entire $30K would be subject to a 2% tax and his tax bill would be $600 What actually happens is that: When assessing his $30K salary, following the chart from top to bottom, the first $20K earned is not subject to tax Afterwards the remaining amount, in this case $10K, is assessed at its respective tax rate. In this case it it 2%, as such he owes $200 in tax, as shown in the chart What is Taxable?This list is non-exhaustive and contains the most common forms of incomes. Click title for full list and consult a professional if necessary Who needs to file taxes?While everyone needs to pay taxes, not everyone needs to file taxesOne may fall under the No-Filing Service category are not required to submit a tax return, they can log on to the IRAS website and ensure all their income and reliefs are accurate or make any corrections if necessary Others will have to file a tax return, they can do so by following instructions, tips and resources This will most likely apply to those are self-employed How to pay taxes?Individuals can choose to pay via an annual lump sum or through up to 12 interest-free monthly installments via GIROOther methods include (but are not limited to)
Reducing TaxesSome definitions:Tax Relief: Reduces the amount of income that is subject to tax Tax Rebate: Reduces the actual amount of tax that needs to be paid Illustration here The examples here will fall under Tax Relief unless stated otherwise One can only claim up to $80,000 in tax relief per Year of Assessment CPF Tax ReliefThis will require an understanding of CPF, read this guide if necessaryFirstly, compulsory CPF contributions by employees are not taxable, neither are the compulsory CPF contributions of employers There are two ways to voluntarily contribute to CPF which will provide tax relief, the Retirement Sum Topping Up Scheme (RSTU) and through Voluntary Contributions to Medisave Account (VC-MA) Retirement Sum Topping Up Scheme
Voluntary Medisave Contributions
In Summary Both are non-reversible Both will have any contributions in excess not leading to tax relief SRS Account
But be aware of the 5% penalty if it is withdrawn early Here are some articles about SRS by FirePathLion and Kyith ConsiderationsWhile the potential tax relief may be rather attractive there are some factors to keep in mind before using these schemesFor those below the 7% (less than $40K) tax bracket it may not be worth it as the savings VS the amount locked up is quite small That and there's also the issue of policy risk, for a lot of younger investors theres a long time until retirement and there will almost be policy changes in the future Especially since the futures of younger investors may be very fluid, the hard and soft lock-ins warrant extra consideration As usual, it comes down to individual situations and their own due diligence Below is a list of various other tax reliefs that are more situational, one will need to apply to receive the relief unless stated otherwise General tax reliefs for all taxpayersEarned Income Relief
NSman Self Relief
Course Fees Relief To encourage skills upgrading for those currently or previously employed
Life Insurance Relief
Parent Relief / Handicapped Parent Relief
Handicapped Sibling Relief
Tax Reliefs for Married/Divorced/Widowed Taxpayers (Male and Female)Qualifying Child Relief (QCR) / Handicapped Child Relief (HCR)
NSman parent relief
Spouse/Handicapped Spouse Relief
Parenthood Tax Rebate
Tax Reliefs for Married/Divorced/Widowed Female TaxpayersForeign Maid Levy
Grandparent Caregiver Reliefs
NSman Wife Relief
Working Mothers Child Relief
TL;DR: Make an SRS account and contribute $1 to lock in the earliest possible withdrawal date Putting funds in CPF SA/RA/MA can help reduce tax payable SRS can reduce tax and funds can be used for investments, but beware the "soft" lock in |
Ticker: GT submitted by jjd1226 to PocketAnalysts [link] [comments] Rating: BUY EOY 2021 Target: 17 (conservative) Feb. 2021 Target: 12.5 ----------------------------------------------------------------------------------------------------------------------------------------------------- Positions I’m ConsideringNaked Pre-earnings Play: 10c exp. 02/12/21Long Call Spread: BUY 7c, SELL 15p exp. 02/12/21 LEAP: 11c exp. 4/16/21 Thesis 1: Air and land travel will increase in 2021 as global economies recover from the pandemic. Goodyear will be a beneficiary of this recovery. Catalyst 1: According to CNN, US air travel hit its highest level since mid-March (2020) over the (thanksgiving) holiday and millions of Americans still traveled by car to join family and friends. TSA said it screened 1.17 million people on Sunday when many Americans were heading home from their Thanksgiving travels. That was 41% of the 2.9 million people screened by TSA on the same day in 2019. Thanksgiving 2019 set a TSA record. That means more than 9.4 million people have been screened in the Thanksgiving travel window, which began on the Friday before the holiday. According to NBC news, TSA data showed that 1,191,123 travelers passed through airport checkpoints nationwide Wednesday, the most since March 16. From Friday to Sunday, a combined 3.2 million people boarded planes, according to agency data — more than 1 million a day. Thesis 2: Goodyear will benefit in 2021 because of Biden’s energy initiative.. Catalyst 2: Biden has stated that he wants to position the U.S. Auto Industry to Win the 21st Century with technology invented in America. Biden will use all the levers of the federal government, from purchasing power, R&D, tax, trade, and investment policies to reverse this trend and position America to be the global leader in the manufacture of electric vehicles and their input materials and parts. Biden will spur an expansion of factory floors and a re-tool of existing manufacturing capacity, and create 1 million new jobs in auto manufacturing, auto supply chains, and auto infrastructure America must accelerate its own R&D with a focus on developing the domestic supply chain for electric vehicles. A specific focus of Biden’s historic R&D and procurement commitments will be on battery technology – for use in electric vehicles and on our grid, as a complement to technologies like solar and wind – increasing durability, reducing waste, and lowering costs, all while advancing new chemistries and approaches. And Biden will ensure that these batteries are built in the United States by American workers in good, union jobs. About GoodyearGoodyear is one of the world's leading tire companies with operations in most regions of the world and one of the most recognized brand names. Together with its U.S. and international subsidiaries, Goodyear develops, manufactures, markets, and distributes tires for most applications.Goodyear is one of the world's largest suppliers of aviation tires for commercial, military and general aviation aircraft. Operating a global business from its Akron, Ohio headquarters, Goodyear manufactures aviation tires and retreads in the United States, Thailand, Brazil, and The Netherlands. Goodyear Segmentation: Automobile industries Goodyear Target Market: Racing cars, heavy duty vehicles, passenger cars, bikes, industrial equipment-like forklifts, bulldozers, cranes, airplanes, etc. Goodyear Positioning: Excellent product quality maintained over decades with continual improvement. SWOT Analysis
Facilities in the United Stateshttps://preview.redd.it/por5r05pmt861.png?width=1208&format=png&auto=webp&s=6aef0f1bd5a925ee05d2eff30c68b40984133da4Environmental Responsibilityhttps://preview.redd.it/k4v2clivmt861.png?width=1208&format=png&auto=webp&s=6132c9f6eb4663ac5ba4ae3c3fc1d130d0728a29A Few Goodyear Competitorshttps://preview.redd.it/r24dkcj3nt861.png?width=252&format=png&auto=webp&s=2dcdacff49503420fdb00503b63823c58d64b295https://preview.redd.it/wetgvn07nt861.png?width=1238&format=png&auto=webp&s=776cbfb651b222dbc64a395d73b1dd8f93d07860 Current Tire Market (https://www.tirereview.com)Smithers published the Future of Global Tires to 2024 report, which sized the tire market at over 2.36 billion units in 2019, with topline volume growth expected to continue at a 3.1% compound annual rate from 2019 through 2024. In 2024, total global industry tire volume was expected to reach 2.75 billion units. The 2019 market value of $239 billion was expected rise to $280 billion in 2024, for a 3.2% compound annual growth rate. Considering the impact of COVID-19 on the global tires market, Smithers sees little recovery in 2020-2021, with real recovery starting in 2022 and 2019 tire volume not being reached again until 2023.As part of its Global Tires report refresh that accounts for the impact of COVID-19 on the industry, Smithers estimates volume growth over the next couple of years will fall significantly with market conditions prolonging the status quo in technology. The market adjustment will slow the adoption of electric vehicles and delay ride sharing, as well as drive supply chain consolidation and other disruptions. Although COVID-19 will significantly impact 2020 tire sales, the tire market in Asia is forecast to pick up and grow on average by 3.6% until 2025. General tires will continue to make up the majority (84.2% share) of the total Asia tires market by 2025, but significant stronger growth is forecasted in aircraft, specialty and OTR tires. https://preview.redd.it/4ju8hmhbnt861.png?width=1242&format=png&auto=webp&s=8450bd3dbc24f6d8fc029729263d29462f22b0a0 The high-performance passenger calight goods vehicle segment is the largest in volume and value for specialty tires and is growing rapidly, driven by the growth of CUV, SUV and pickup truck segments in Asia. Current tire technology in China is focused on low rolling resistance (LRR) tires, driven by pressure from the government to reduce CO2 emissions and the establishment of the China Rubber Industry Association (CRIA) tire labeling system. List of the Top Key Players of Low Rolling Resistance Tire Market:
List of major players operating in the South East Asian tire market include PT Gajah Tunggal TBK, PT Suryaraya Rubberindo Industries, Bridgestone Corporation, Compagnie Generale des Etablissements Michelin, Sumitomo Rubber Industries, Continental AG, The Goodyear Tire & Rubber Company, Deestone Corporation Limited, Toyo Tire & Rubber Co. Ltd, The Yokohama Rubber Co., Ltd., etc. https://preview.redd.it/74mrc4jint861.png?width=1262&format=png&auto=webp&s=0523aad0d4ce01b1959802c901dd1d0a978ef086 South East Asia Rubber Market Analysis and Forecasts to 2023 (https://www.globenewswire.com/)Asia accounts for 93% of the world natural rubber production with Thailand being the largest producer followed by Indonesia and Vietnam. Other large rubber producers in the region include India, China and Malaysia.In 2019, the global natural rubber production stood at 13.804 million tonnes. It is expected that in 2020, the production will increase 2.7% to 14.177 million tonnes. The first two months of 2020 have recorded an annualized fall of 5.2% in global natural rubber production. The global synthetic rubber market is projected to grow at a CAGR of 5.1% in the period 2015-2023 and be worth USD 45,767.1 million. Economic downturn being experienced by China which is globally the largest importer of rubber is keeping rubber prices balanced in a scenario where supply outstrips demand. The oversupply situation persists even though the three largest producers of rubber, Malaysia, Indonesia, and Thailand are reducing the output of the material used in manufacturing of a range of products from gloves to car tires. China is also the world's largest consumer of natural rubber followed by India and the United States. The slowdown in the Chinese economy remains a concern for the global rubber industry. The Coronavirus global outbreak is expected to have long-reaching hampering effects on the Chinese as well as the global economy. Goodyear does not own any rubber tree plantations, but they have taken actions as a purchaser of natural rubber with Goodyear Orient Company. Goodyear Orient Company (Private) Limited (GOCPL) is a wholly-owned subsidiary of Goodyear Tire and Rubber Company (GTRC) and has been around since 1917. Goodyear and Some EV NewsGoodyear And TuSimple Collaborate On Autonomous Vehicle Freight Operations - prnewswire - 11/20/20The Goodyear Tire & Rubber Company (NASDAQ: GT) announced today a strategic relationship with TuSimple, a global autonomous trucking technology company, to provide tires and tire management solutions to TuSimple's Autonomous Freight Network (AFN). Goodyear will provide products and repair services to enhance the safety and operation of autonomous trucks. Additionally, Goodyear and TuSimple will conduct wear studies designed to understand how autonomous trucks and tires can help better predict maintenance, understand tire longevity and reduce the carbon impact of fleets. Collected data from the study will also deliver insights into the difference between an autonomous and human driver with respect to the tires. "With our leadership in products, fleet support and advanced innovations, Goodyear is applying knowledge to help deliver performance and safety with autonomous vehicles," according to Erin Spring, Goodyear's director, new ventures. GOODYEAR, ENVOY TECHNOLOGIES PILOT DIGITAL SERVICE SOLUTION FOR SHARED, ON-DEMAND EV FLEETS - news.goodyear.eu/ - 3/21/20 The Goodyear Tire & Rubber Company today announced a new pilot program with Envoy Technologies, a provider of shared on-demand, community-based electric vehicles (EVs). The pilot, which launched early this year, is testing services aimed at minimizing operational downtime for vehicle fleets Goodyear’s unique predictive tire servicing solution for connected fleets is being used to forecast and automatically schedule needed tire maintenance and replacement. Envoy’s fleet managers can see its fleet’s status, schedule maintenance needs and update appointments with Goodyear’s on-demand scheduling program, helping to keep its vehicles operational and avoid the typically unforeseen issues that might suddenly force a shared vehicle to be pulled from service. To do this, Goodyear gathers secure, anonymized data from Envoy’s connected vehicles and uses it to predict and schedule service needs. Goodyear then utilizes its network of outlets and mobile vans to provide service to the vehicles. The mobile vans can install tires on-site at their charging stations, maintaining vehicle safety with minimal time required by Envoy staff. “With on-demand car sharing and ride hailing services on the rise, Goodyear is extending its fleet services business model to shared mobility providers to improve urban fleet operations,” said Chris Helsel, Goodyear’s chief technology officer. Envoy provides shared, community-based electric vehicles where people live, work and stay, with a significant percentage of its fleet dedicated to deployment in disadvantaged communities. The two-year-old company recently passed a milestone of more than 100 vehicles deployed at partner sites with a pipeline of 1,800 vehicles to be launched in major metropolitan areas across the nation, including Portland, Seattle, Austin, Chicago, New York, Boston, Miami and Washington, D.C. Goodyear’s effort with Envoy builds on a successful test program with Tesloop, a city-to-city mobility service that exclusively used Tesla electric vehicles, and the commercialization of Goodyear Proactive Solutions for truck fleets, using advanced telematics and predictive analytics technology to allow fleet operators to optimize fuel efficiency and precisely identify and resolve tire-related issues before they happen. Goodyear Partners with Lexus to Shape the Future of Electric Mobility - news.goodyear.eu/ - 3/5/20 Lexus LF-30 Electrified concept was originally presented sitting on four bespoke Goodyear concept tires at the 2019 Tokyo Motor Show. It was presented again on Tuesday, March 3rd at Lexus’ live press conference during the Virtual Press Day of the 2020 Geneva International Motor Show. Goodyear’s concept tires are tailor-made to benefit the modern, sleek and sporty design of the Lexus. They support EV motors and are designed to improve the overall comfort and performance of the car. The LF-30 Electrified concept tire includes several innovative features: EV motor cooling: Drawing on Goodyear’s expertise in aerodynamics, the concept tires are designed to improve the cooling of the EV motors. Cool air enters through the front bumper intake and fins on the tires drive the flow towards the electric motor positioned behind each wheel. The hot air produced by the EV motor is then expelled towards the outer edge of the rim of the LF-30 Electrified. Reduced aerodynamic drag: The tire design along with the outer tire shape would improve the Lexus’ aerodynamics by reducing drag, resulting in higher efficiency and battery range. Noise reduction through biomimicry: Goodyear found inspiration in nature when designing the concept tires. The leading edges of the cooling fins are covered with fine velvet like on the wings of an owl, which enables the predator to silently catch their prey at night. Through this biomimetic solution, the rolling noise of the tire would be reduced to a minimum. Goodyear’s concept tire for the Lexus LF-30 Electrified concept comes in a 285/35R24 size. https://preview.redd.it/9w7u1uomnt861.png?width=1242&format=png&auto=webp&s=fe7b3d3eb70859a0bf40b773113c46ce47246b9d Goodyear touts mileage gains in 2nd-gen EfficientGrip EV tires - tirebsiness.com - 3/3/20 Goodyear is preparing to launch later this year the second generation of its EfficientGrip Performance electric-vehicle tire line, promising the new version will deliver 50% longer life than the first generation, which launched in 2018. Goodyear held a video press conference from its European headquarters office in Brussels to launch the EfficientGrip Performance 2 and unveil its latest concept design, the Goodyear reCharge, which features a self-regenerating tread. Goodyer claims the EfficientGrip Performance 2 offers 20% more tread life than the "next best tested" competitor, while continuing to outperform the competition wet and dry braking, according to Mike Rytokoski, chief marketing officer, consumer Europe. Mr. Rytokoski said half of all the new tires Goodyear has designed now are for electric vehicles, which require bespoke EV tires because they are heavier, due to weight of the batteries, and deliver extra torque. As for future generations of EV tires, Goodyear said industry figures show 57% of all passenger vehicle sales, and over 30% of the global passenger vehicle fleet, will be electric by 2040. Goodyear's vision of a next-generation tire for EVs is the reCharge, a non-pneumatic design that features a self-regenerating tread based on the use of biodegradable liquid. To regenerate the tread, the vehicle owner inserts a capsule containing the liquid into the hub, where it mates up with the tubes. The centrifugal force of the rolling tire/wheel distributes the liquid up to the base of the tread elements, Goodyear showed in a video. https://preview.redd.it/ukr1e2cqnt861.png?width=1242&format=png&auto=webp&s=0149eed0cebf4c5afdeee1e17113ec36a37b2d42 The tread compound also would be reinforced with fibers inspired by spider silk, Goodyear said. https://preview.redd.it/u693uebtnt861.png?width=1242&format=png&auto=webp&s=8f630d2fef1801f2fd136d8250ed4b7136ee2bae The tire maker did not elaborate on what materials it envisions for the reCharge's wheel or how the tread elements would renew if supplied with a liquid from underneath but did say it envisions the liquid could be engineered to allow the vehicle owner to customize the tire tread to climatic or environmental changes. Goodyear and Biden Connection - thehill.com - 08/19/20Democratic presidential nominee Joe Biden defended Goodyear tires after President Trump urged Americans to boycott its products after he claimed the company announced a “ban” on his campaign’s “Make America Great Again” attire.“Goodyear employs thousands of American workers, including in Ohio where it is headquartered. To President Trump, those workers and their jobs aren't a source of pride, just collateral damage in yet another one of his political attacks,” Biden said in a statement. “President Trump doesn’t have a clue about the dignity and worth that comes with good-paying union jobs at places like Goodyear — jobs that can support a family and sustain a community.” Electric Vehicle Outlook (bnef.com) (added 2/2/21)Automakers are accelerating their EV launch plans, partly to comply with increasingly stringent regulations in Europe and China. COVID-19 will delay some of these, but by 2022 there will be over 500 different EV models available globallyPassenger EV sales jumped from 450,000 in 2015 to 2.1 million in 2019. They will drop in 2020 before continuing to rise as battery prices fall, energy density improves, more charging infrastructure is built, and sales spread to new markets. https://preview.redd.it/0gbbbh727x861.png?width=1978&format=png&auto=webp&s=20cb377070f4f985736eac0b1628a9ff0f5696cd By 2040, over half of all passenger vehicles sold will be electric. Markets like China and parts of Europe achieve much higher penetrations, but lower adoption in emerging markets reduces the global average. https://preview.redd.it/tc4xvfj87x861.png?width=1978&format=png&auto=webp&s=7660e30f3ca257d167a901c5ee90d967bd493199 Despite the rapid growth, there will be 1.4 billion passenger vehicles on the road in 2030 and EVs account for just 8% of these. This rises to 31% by 2040 as the fleet slowly changes over. https://preview.redd.it/b8qqvjcf7x861.png?width=1978&format=png&auto=webp&s=f199055564d3bbcafe3982078ff7296c3da776f5 Number of countries that have announced plans to phase out sales of internal combustion vehicles. https://preview.redd.it/2f6iaf6p7x861.png?width=1756&format=png&auto=webp&s=832c6e8d708462720d78d43f9889330d7ab0e1f4 Looking beyond passenger cars, several ‘killer apps’ are emerging for electrification. Two-wheeled vehicles (scooters, mopeds, motorcycles) and municipal buses are already going electric quickly and accelerate further in the next ten years. Delivery vans are the next segments to cross the tipping point. https://preview.redd.it/26eh761v7x861.png?width=2520&format=png&auto=webp&s=45795432025a2d904065ae9eeb6f0dad042fe1ad 09/30/20 10k SEC FilingProductBullish StatementsNet sales in the third quarter of 2020 were $3,465 million, compared to $3,802 million in the third quarter of 2019. Net sales decreased in the third quarter of 2020 primarily due to lower global tire volume, unfavorable foreign currency translation, primarily in Americas, and lower sales in other tire-related businesses, primarily due to lower aviation sales globally and a decrease in third-party sales of chemical products in Americas. These decreases were partially offset by improvements in price and product mix, primarily in EMEA and Americas. Europe, Middle East and Africa: In the third quarter of 2020, Goodyear net loss was $2 million, or $0.01 per share, compared to net income of $88 million, or $0.38 per share, in the third quarter of 2019. The change in Goodyear net income (loss) was driven by lower segment operating income, partially offset by lower income tax expense. Net sales in the third quarter of 2020 were $1,156 million, decreasing $49 million, or 4.1%, from $1,205 million in the third quarter of 2019. Net sales decreased primarily due to lower tire volume of $97 million. This decrease was partially offset by improvements in price and product mix of $40 million, driven by higher proportionate sales of commercial tires, and favorable foreign currency translation of $5 million, driven by the strengthening of the euro. Bearish Statements Worldwide tire unit sales in the third quarter of 2020 were 36.6 million units, decreasing 3.7 million units, or 9.1%, from 40.3 million units in the third quarter of 2019. Net sales decreased in the first nine months of 2020 primarily due to lower global tire volume, lower sales in other tire-related businesses, primarily due to a decrease in third-party sales of chemical products in Americas and lower aviation sales globally, and unfavorable foreign currency translation. Net sales decreased in the third quarter of 2020, primarily due to lower global tire volume of $295 million, unfavorable foreign currency translation of $56 million, primarily in Americas, and lower sales in other tire-related businesses of $48 million, primarily due to lower aviation sales globally and a decrease in third-party sales of chemical products in Americas. Europe, Middle East and Africa: Net sales in the third quarter of 2020 were $1,156 million, decreasing $49 million, or 4.1%, from $1,205 million in the third quarter of 2019. Net sales decreased primarily due to lower tire volume of $97 million. This decrease was partially offset by improvements in price and product mix of $40 million, driven by higher proportionate sales of commercial tires, and favorable foreign currency translation of $5 million, driven by the strengthening of the euro. Europe, Middle East and Africa unit sales in the third quarter of 2020 decreased 1.3 million units, or 8.9%, to 13.2 million units. Replacement tire volume decreased 1.0 million units, or 8.2%, primarily in our consumer business, reflecting decreased industry demand as a result of the economic impacts of the COVID-19 pandemic and expected declines resulting from our initiative to align distribution in Europe. OE tire volume decreased 0.3 million units, or 11.3%, primarily in our consumer business, driven by lower vehicle production as a result of ongoing pandemic-related impacts at major OE manufacturers and our continued exit of declining, less profitable market segments. Europe, Middle East and Africa unit sales in the first nine months of 2020 decreased 10.0 million units, or 23.8%, to 32.1 million units. Replacement tire volume decreased 6.4 million units, or 20.5%, primarily in our consumer business, reflecting decreased industry demand as a result of the economic impacts of the COVID-19 pandemic and expected declines resulting from our initiative to align distribution in Europe. America: Net sales in the third quarter of 2020 were $1,823 million, decreasing $226 million, or 11.0%, from $2,049 million in the third quarter of 2019. The decrease in net sales was driven by lower tire volume of $155 million, unfavorable foreign currency translation of $58 million, primarily related to the Brazilian real, and lower sales in other tire-related businesses of $42 million, primarily due to a decrease in third-party sales of chemical products and lower aviation sales. Asia Specific: Net sales in the first nine months of 2020 were $1,208 million, decreasing $361 million, or 23.0%, from $1,569 million in the first nine months of 2019. Net sales decreased due to lower tire volume of $320 million, unfavorable foreign currency translation of $27 million, primarily related to the weakening of the Indian rupee and Australian dollar, and lower sales in other tire-related businesses of $26 million, primarily due to lower aviation and retail sales. Asia Specific: Replacement tire volume decreased 2.1 million units, or 15.3%, primarily in our consumer business, reflecting decreased industry demand as a result of the economic impacts of the COVID-19 pandemic. Net sales in the third quarter of 2020 were $486 million, decreasing $62 million, or 11.3%, from $548 million in the third quarter of 2019. Net sales decreased due to lower tire volume of $43 million, unfavorable price and product mix of $9 million, and lower sales in other tire-related businesses of $8 million, primarily due to lower aviation sales. We expect our liquidity to remain strong through the remainder of the year. However, the borrowing base under our first lien revolving credit facility is dependent, in significant part, on our eligible accounts receivable and inventory, which have declined as a result of our lower sales and production levels due to the COVID-19 pandemic. EarningsBullish StatementsThe change in Goodyear net income (loss) was driven by lower segment operating income, partially offset by lower income tax expense. Our earnings and forecasts of future profitability, taking into consideration recent trends, along with three significant sources of foreign income provide us sufficient positive evidence that we will be able to utilize our remaining foreign tax credits that expire between 2025 and 2030. Bearish Statements Earnings in other tire-related businesses decreased by $25 million, primarily due to lower aviation and motorcycle sales. Additionally, on April 17, 2020, we reached a tentative bargaining agreement, which was ratified on May 1, 2020, and subsequently permanently closed our Gadsden, Alabama manufacturing facility (“Gadsden”) as part of our continuing strategy to strengthen the competitiveness of our manufacturing footprint by curtailing production of tires for declining, less profitable segments of the tire market. ExpensesBullish StatementsThese negative impacts were partially offset by cost savings of approximately $76 million, including raw material cost saving measures of approximately $6 million. These decreases were partially offset by a $24 million increase in expense related to potentially uncollectible accounts receivable, primarily in EMEA and Americas. Interest expense in the first nine months of 2020 was $246 million, decreasing $15 million, or 5.7%, from $261 million in the first nine months of 2019. SAG decreased primarily due to lower global travel-related expenses of $8 million and lower product liability costs of $5 million in Americas. We have taken, and will continue to take, other actions to reduce costs and preserve cash in order to successfully navigate the current economic environment, including limiting capital expenditures to no more than $700 million for the full year and reducing discretionary spending, including other selling, administrative and general expenses (“SAG”), which, in total, decreased by $17 million and $118 million in the three and nine months ended September 30, 2020, respectively. These decreases were partially offset by improvements in price and product mix, primarily in EMEA and Americas. In the third quarter of 2020, Goodyear net loss was $2 million, or $0.01 per share, compared to net income of $88 million, or $0.38 per share, in the third quarter of 2019. The change in Goodyear net income (loss) was driven by lower segment operating income, partially offset by lower income tax expense. Europe, Middle East and Africa: These decreases were partially offset by lower raw material costs of $11 million and improvements in price and product mix of $10 million. CashflowBearish StatementsWe are actively monitoring our liquidity and have taken a number of actions aimed at mitigating the negative consequences of the COVID-19 pandemic on our cash flows and liquidity, such as suspending production at most of our manufacturing facilities during parts of the first half of 2020, reducing our second quarter payroll costs through a combination of furloughs, temporary salary reductions and salary deferrals, refinancing our first lien revolving credit facility to extend its maturity and increase its borrowing base, issuing $800 million of 9.5% senior notes due 2025, temporarily suspending the quarterly dividend on our common stock, reducing capital expenditures and discretionary spending, and using governmental relief efforts to defer payroll and other tax payments globally. DebtBearish StatementsIn addition to our previous financing activities, we may seek to undertake additional financing actions which could include restructuring bank debt or capital markets transactions, possibly including the issuance of additional debt or equity. Given the inherent uncertainty of market conditions, access to the capital markets cannot be assured. Technical AnalysisLeap PT: 17https://preview.redd.it/8l9fav3znt861.png?width=1242&format=png&auto=webp&s=123f55a26e87d5649343602162ce2afab3ec90f6 Medium (Earnings Run) PT: 12.5 https://preview.redd.it/n3yxa7b2ot861.png?width=1242&format=png&auto=webp&s=8f2279b34a62593ef6cdd4ae1a9209ce129c1c06 Option Order Flowhttps://preview.redd.it/dg38cbm8ot861.png?width=1242&format=png&auto=webp&s=d80461f9f86667b6997a07544a711fe71e6621cfDec. Dark Pool Printshttps://preview.redd.it/85bz5hlbot861.png?width=1242&format=png&auto=webp&s=a24b500123f1666843927e95efb41bc284554935Rating: BUY EOY 2021 Target: 17 (conservative) Feb. 2021 Target: 12.5 ----------------------------------------------------------------------------------------------------------------------------------------------------- Positions I’m ConsideringNaked Pre-earnings Play: 10c exp. 02/12/21Long Call Spread: BUY 7c, SELL 15p exp. 02/12/21 LEAP: 11c exp. 4/16/21 |
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- [UPDATE] Converge [CNVRG 16.80] IPO is TODAY... the 2nd biggest IPO in PSE history is set to go off this morning. We’ve talked a lot about Converge in this space, but all that matters (at least initially) is what the traders think when the bell rings to start the buying and selling. Those that bought the IPO will be “protected” to a limited extent by CNVRG’s stabilization agent, UBS AG Singapore, which will have authorization to buy up to around 255m shares over the stock’s first 30 days of life to help “prevent or minimize” a reduction in market price.
- MB: Moment of truth for CNVRG. The market has been ripping as of late (that’s good), we’re up over 11% in the past month, but still the question comes down to one of value. Is CNVRG worth P16.80/share? Can the “Other Dennis” translate a cash bump into market growth to justify the price? Tune in to find out. :)
- [NEWS] AREIT [AREIT 25.65 ▼0.19%] acquires another property from papa... the real estate investment trust, that IPO’d just a few months ago, has purchased another property from its parent company, Ayala Land [ALI 33.95 ▲1.34%]. AREIT purchased “The 30th” in Pasig from ALI for P5.1bn. The building is commercial hub/shopping mall. The deal only transfers the ownership of the building and the long-term leases within the building to AREIT, however, as the ownership of the land remains with ALI.
- MB: AREIT is just starting to stretch its legs. News hit around the same time that AREIT would be raising P6.4bn through a bond sale, and opening up a P12bn credit facility with banks to enable additional acquisitions. All of these are positive moves for shareholders; debt is cheap, and provided the properties are of good quality and lease at attractive rates, adding to the portfolio adds to the quarterly dividend.
- [UPDATE] POGO flight in progress?... Rappler is reporting that the Subic Bay Metropolitan Authority’s stats show that the POGOs (Philippine Offshore Gaming Organizations) have reduced their staffing levels by 85%. Less than 500 Chinese staff remain inside the SBMA’s jurisdiction, from a high-water mark of over 1,500 during the initial stages of the lockdown. This lines up loosely with the projections of property analyst David Leechiu, who predicted that up to 17% of total office space would be vacant by year-end due to POGO workers leaving, and up to 20-30% of office space vacant in 2021 due to the same.
- MB: Very little is known about the owners of the POGO firms, so it’s difficult to say why anything happens in particular. We always hear about what POGOs are “thinking” from property analysts like Leechiu, who only looks at trailing data like empty office space, or from politicians or bureaucrats at PAGCOR who have obvious conflicts. This we do know: COVID crippled earnings, movement restrictions hampered operations, and the new taxes levied by the government make the environment less friendly (at least on paper; it’s not like the government ever collects any of those taxes). My personal contacts in the POGO space have maintained that POGO employers are happy and willing to scale up and down without much notice, and appear to be scaling down to skeleton levels in order to ride out the pandemic, but also what they consider to be the temporary crack-down by China. No matter what, property developers that jumped on the “recurring revenue” commercial lease train like Megaworld [MEG 3.14 ▲1.95%], DoubleDragon [DD 14.50 ▼0.68%], Ayala Land [ALI 33.95 ▲1.34%], and DM Wenceslao [DMW 5.53 ▲2.79%] may have an uphill battle to rearrange all those eggs in the basket.
G'Day FIAustralia, submitted by financial-gladiator to fiaustralia [link] [comments] below my experience living in Australia and Singapore. I personally found claims Singapore to be expensive completely exaggerated and decided to sum up my experience living over a decade in Australia and half a decade in Singapore. I quadrupled my saving rate in Singapore while improving my quality of life versus Australia. These are updated 2019 numbers and tax rates based on 180k income and 90k income for comparison. I think you will find the analysis valuable if you consider moving to another country to optimise your tax/ income and accelerate your Financial Independence Day significantly. I hope this post will help others assessing for their own if moving countries make sense re FI. The True Cost of Living in Singapore versus AustraliaThe Economist Intelligence Unit compares the cost of living in some of the largest metropoles worldwide. They have been compiling this annual global ranking for 30 years. In the ranking they compare a basket of 160 items against a base of prices in New York City. According to the ranking Singapore has been the most expensive city in the World five years in a row now. What's worse, not a single Australian city has made it into the Top-10 this year.Sydney came in 16th, Melbourne 22nd, Brisbane 41st, Adelaide 51st, and Perth 54th. I cannot believe these results having lived in almost a dozen countries including Australia and Singapore. We need to set the record straight and debunk this ranking. Today I'm writing to you from cheap-o and wonderful Buenos Aires which ranks 125th. In a nutshell, I lived and worked in Australia for close to a decade. Later, I moved to Singapore for five years. As a result my quality of life increased while my savings quadrupled. Impossible? Let's check the facts/ math. Don't get me wrong, I truly love Australia, but from a financial perspective, it just doesn't stack up. If you want to achieve financial independence you are better off making a living in a country like Singapore. This blog post is particularly relevant to highly skilled professionals who consider moving to Singapore or Australia. I have based my analysis on an single expat without kids earning a salary of $180,000 annually. Do not worry, I modelled a $90,000 scenario as well which turns out even more surprising, believe it or not. If you would like to understand the financial pros and cons between working in Australia versus Singapore, this post is for you. Let's compare the actual costs of living in Singapore versus Australia. We are about to break down the real numbers based on my experience. Geo optimising your income and expenses can greatly accelerate saving up for your first million. Income Taxes Australia Most people don't think of it but the number one cost item in Australia is mandatory income tax and superannuation. In addition most people need to pay the so-called medicare levy of 2% (basic public health insurance). There is no way around these. As a high income earner you will be required to pay an additional 1.5% medicare levy surcharge but this can be offset by buying private health insurance (at additional expense of course). I included it as either way you need to pay up. In summary as a high income earner in Australia, say you gross $180,000, you would be required to pay $56,415 in income tax, medicare levy and surcharge, and superannuation contributions tax. The $56,415 break up superannuation tax of $2,342, medicare charges of $5,753.52, and personal income tax of $48,319. The $15,616 in superannuation contributions you can only choose to invest in a government approved superannuation fund. You are basically forced to buy paper assets by law. You can not touch this fund to invest in your Principal Place of Residence. This is unless you create a self managed super fund which comes with huge additional costs and doesn't make financial sense for most people. So before you spend a single dollar on housing, your taxes add up to a staggering $56,515 annually. The effective tax rate comes to 31.3%. You pay this tax with each of your paychecks. They call it Pay As You Go (PAYG). You basically work from January till almost the end of April just to pay your tax bill in Australia. Further, one can deduct a few thousand dollars a year as a professional in some instances. You can also deduct interest for investment properties. The government incentivises you to take on debt and negatively gear - a terrible idea in my view. As I have written before, you should avoid the debt trap at all cost. For the purpose of the comparison I have excluded deductions as they vary based on individual circumstances and don't impact the overall result much. Let's compare Australian income taxes to Singapore. Doing so we will disregard exchange rates for ease of comparison. The Singapore dollar has been more or less on par with the Australian Dollar for a few years now. Income Taxes Singapore In Singapore a $180,000 gross income would attract a total tax of $17,350. The effective tax rate comes to a mere 9.6%. That's it. As a foreigner you don't contribute to the Central Provident Fund (CPF). This is the equivalent to the Australian superannuation, or similar to an American 401k. You don't even need to lodge a tax claim, because there is no meaningful deductions. It's all automated for most of the companies and it couldn't be more straight forward. You pay after the tax year has ended and can choose to pay in arrears over 12 months (interest free!). Investing your postponed savings can additionally reduce your effective tax rate. Effectively you work just over a month for the Singaporean tax man. By the way, If you earn significantly more than $180,000 and travel a lot for business you can reduce your effective tax rate to 10% or even 0% provided you work more than 95 or 183 days outside of Singapore. You would need to apply for Non-Ordinary Resident Tax (NOR) status which is valid up to five consecutive years. I used this to reduced my already low tax bills in Singapore even more. Housing Costs Australia versus Singapore Looking at Sydney prices you need to spend around $33,000 ($2,875 monthly) for a well-located one bedroom apartment. When I lived in Singapore I paid the same amount for a brand new apartment. In addition my two storey apartment came with a guest bedroom, a second bathroom, a terrace and a balcony. Did I mention my private Jacuzzi and a swimming pool? Having said that you get some world class beaches in Sydney. I have written another blog post on Renting versus Owning in Australia which you might find interesting. I only look at renting because it made sense to do so in the past 20 years for most young(er) professionals. What most people however don't know is that as a foreigner you can rent so-called HDB apartments. Those are apartments that were built for Singaporeans by the government. Some of these are for rent. They don't come with balconies and amenities (like swimming pools, tennis courts, etc.). They are also half of the cost to rent as compared to private apartments. You have a huge choice in Singapore on what to rent, at which quality, and what price point. From an Financial Independence view this second highest cost bucket can make a huge difference to your saving rate. Transportation Costs Australia versus Singapore Transportation is a bloody huge expense in Australia. You need a car to get around. Infrastructure and public transportation is relatively miserably developed across Australia. I get that there is no fast trains connecting major cities given population and land size of Australia. However there is no excuse to have such a terrible public infrastructure across the bigger state capitol cities like Melbourne and Sydney. Most professionals would need a car and partially use the public transportation system. It's a double whammy. Public Transportation will set you back some about $2,064 p.a. (172$ on average a month). BudgetDirect estimated running the average costs for a car in Sydney at $22,292 per annum in 2017. You read that right. This sum includes all running costs, incl. tolls, gas, parking, maintenance, financing, etc. We can argue surely optimise here, but I have assumed a high income professional to use a combination of car and public transport (as I have lived myself in Australia). In contrast, you truly do not need a car in Singapore. Buses, light rails, and subways connect the entire city state. It's a fast growing state of the art public transportation system, which is subsidised by the government. They don't want you to use cars and clogged the street. Consequently, there are limited effects during peak hour compared to other cities of this size. Personally, I used a mix of taxis, walking, busing, and subway transportation. It costs me less than $12,000 a year. If you would want to save and only use the public transportation, you probably can get easily away with less than $1,200 a year at today's prices. But let's say you use taxis a fair bit for comfort of getting from A to B. Food Singapore versus Australia This one is really difficult to compare as taste and preference in food and nutrition in general various greatly. I can tell you this: In Singapore I never ever cooked once. Not in the entire five years that I lived there. I would simply go to various hawker centres (they are like non air-conditioned food courts) across the entire island and get my meals there. A meal would come as cheap as $2.50 (1 meat, 1 veg, rice) and a more elaborate meal would set me back $10 or so. I don't think you can go to McDonald's in Australia and get a meal for $10 these days. Of course, in Singapore, you have another 7,000 restaurants to choose from and food would be more expensive there, but in Australia the same quality would cost even more in my experience. For various basic food items and today's prices I looked at Numbeo, which compares and updates average prices regularly. I don't believe all numbers are accurate. Having said this you will get the trend that Sydney is a lot more expensive than Singapore when looking at the Numbeo figures. If you were to cook basic meat and vegetables at home it would cost you about $200 a month or $2,400 per year. In Sydney this would be around $437 a month or $5,245 per year. Goods and Services Tax Australia versus Singapore Whilst this doesn't seem to be a big one, it actually is. Australian GST is 10%. Any good or service you purchase attracts a 10% GST. All your remaining disposable income is basically taxed one more time by the government. This is common today but there are differences. In Singapore the GST is 7%, one of the lowest in the developed World. This equates to an instant 30 percent saving comparing to Australia. Think of the thousands of dollars saved here again. Of course the actual saving amount is difficult to estimate. Given most people live paycheck to paycheck we can estimate a 3% saving on the average saving potential. This equals $1,236 a year more disposable income in your pocket in Singapore than in Australia (based on the Australian Disposable Income). Summary of Basic Living Costs in Singapore and Australia on a $180,000 gross income Cost of Living Australia vs Singapore on $180,000 gross income I have compared the biggest living expenses in Singapore and Australia above. These include taxes, housing, transportation, food, GST and utilities costs in Sydney and Singapore. In our illustrative case we took a young individual grossing $180,000 in income a year. The saving potential is almost triple in Singapore compared to Australia. But wait, there is much more. Think about holidaying, investing savings, the opportunity cost of your time, and fun things like drinking beer. Vacations Singapore versus Australia You can buy a return flight in Singapore for $150 to visit Thailand, Malaysia, Indonesia, Vietnam, Taiwan, Hong Kong, etc. There are even cheaper promotions available if you look for them. That $150 wouldn't even pay the international airport tax in Sydney or Melbourne, let alone the actual flight. Vacationing in Australia is extremely expensive, whereas all around Singapore is extremely affordable. Your disposable income takes you so much further. Having said this I will never trade my experience wandering out into the hugely diverse Australian wild. Camping in and exploring magnificent Australian National Parks and Outback is truly amazing. Investing Australia versus Singapore So what are you doing with all the savings in Singapore? You invest them at zero % capital gains tax. Yes you have to pay income tax on your dividends (if applicable), but gains from sales of shares is 100 % tax exempt. In Australia you would have to taxes, again... sniff. Drinking Beer Australia versus Singapore Drinking beers like the locals do in Singapore is about half the price of drinking beers in Australia. A 650ml bottle of beer in the local hawker centre sets you back $6.50 in Singapore. In Australia the same amount in the cheapest locale would be at least double that price. You can buy a bottle of whiskey in a bar in Singapore from $80 including mixers. In Australia "responsible serving of alcohol" prohibits you to buy in bulk. The average spirit has 24 shots and costs $6 per shot. We are looking at $144 and queuing up 12 times to drink a few rounds with a buddy. All the meanwhile we are being assessed if we can take more? Well, What If I you $90,000? Sydney actually stacks up even worse here. I looked at how a low to medium income salary would compare in Singapore and Australia. You'd think $90,000 is not considered low to medium income, right? However, according to the Australian Tax Office this group of people can save on medicare levy surcharge of 1.5% and are eligible for an additional tax offset of $1,080. In Sydney your saving potential would actually drop further to a mere $20,050 per annum. Assuming you keep the nice one bedroom apartment, still cook mostly at home, you would no longer be able to afford the average car and rely on public transport. Quality of life just reduced significantly. I assumed a similar scenario for Singapore, with the exception that we would cut most spend on taxi fares. In Singapore you could still afford a very nice life plus save almost two times the amount you would in Sydney. Below are the numbers. Cost of Living Australia vs Singapore on $90,000 gross income Opportunity Cost Singapore and Australia There are many costs we can measure but some are just priceless. We are pursuing Financial Independence to gain time after all. This is our ultimate goal. And time is the biggest saving in Singapore. Think about it for a minute. You don't need to shop groceries, get stuck in traffic jams, look for a car park, maintain your car. I saved tremendous amounts of time as everything is around the corner in Singapore. Whether it's commuting, going to the gym, doctor, airport. If you think of the endless opportunities to generate additional income, or simply live healthier due to lower stress, this is what I valued about Singapore the most. Of course if you prefer to pay thousands of dollars a month more for Sydney Beach access, that is ok to, but don't count on becoming financially independent as fast as you could in Singapore. My Experience in Singapore versus Australia In my personal case I saved thousands of hours and unnecessary stress, besides hundreds of thousands of dollars in just five years. I vacationed much more frequently for far less money, in many exotic places. It was amazing to pay a fraction of the taxes while enjoying a far superior infrastructure and much more convenient lifestyle. It's safer, easier and at least as much fun to live in Singapore. I hope I showed you today that it's far cheaper than working and living in Australia. Like everything in life it is all about the choices we make. If you are after Financial Independence, living in a country like Singapore can greatly accelerate your Financial Independence Day. For Freedom and Living Your Dreams,Your Financial Gladiator Original Blog Post: https://financial-gladiator.com/2019/04/18/the-true-cost-of-living-in-singapore-versus-australia/ edits: corrected table for 90k income as it shows a wrong calc for superannuation contributions. |
The foreign worker levy, commonly known as “levy”, is a pricing mechanism to regulate the number of foreign workers in Singapore. The levy liability will start from the day the Temporary Work Permit, Work Permit or S Pass is issued, whichever is earlier. It ends when the permit is cancelled or expires. A Singapore Government Agency Website. Ministry of Manpower Homepage. Menu. Work passes. Employment practices. ... You are limited by a quota for your industry and must pay the monthly foreign worker levy for each Work Permit holder you employ. Find out your sector's quota and levy requirements. Currently, about 80 per cent of Singaporean maid employers pay a $60 monthly levy under three concessionary schemes, instead of $265 a month. S Pass quota and levy requirements in Singapore. The number of S Pass holders you can hire is limited by a quota. You must also pay a monthly levy for these workers. What is the foreign worker levy. The foreign worker levy, commonly known as “levy”, is a pricing mechanism to regulate the number of foreign workers in Singapore. This service lets employers of foreign workers or foreign domestic workers (FDWs) see their levy bill and settle it, if they need to. It was formerly known as the Internet Foreign Worker Levy Billing System (iFWLB). The monthly foreign worker levy due in April will be waived, as the government looks to ease the labour costs of firms during the four weeks that Singapore is on a circuit breaker to slow down the coronavirus transmission, Deputy Prime Minister and Finance Minister Heng Swee Keat said. All Singapore employers of maids are required to pay a monthly levy to the government as a means to limit the number of foreign domestic workers in the country, hence avoiding pressure to social resources. Normally, employers in a company in Singapore has to pay Central Provident Fund (CPF) (a savings plan) contributions for their employee. Foreign Worker Levy (FWL) The FWL is a monthly levy that employers are liable to pay for each foreign employee (Work Permit or S Pass holders) hired. The levy rate depends on the employer’s industry and the ratio of foreigners to Singaporeans and permanent residents employed in the company. Payroll taxes. Singapore does not have payroll withholding. Employers have to contribute Skills Development Levy (SDL) for all employees* up to the first $4,500 of each employee's total monthly remuneration** at a levy rate of 0.25%. This is subject to a minimum of $2, whichever is higher. From October 2008, the statutory Singapore SDL contribution rate is 0.25% of a staff’s monthly remuneration, capped at $11.25 per month. There is a minimum levy of $2. For monthly salary bands below, the equivalent levy is:
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