The Singapore personal income tax rate ranks as one of the lowest in the world. It is no surprise that the Lion City is an attractive location for many to work and live. Singapore adopts a progressive personal income tax regime from 0 to 22%. For tax residents, it is mandatory to file your annual personal income tax in Singapore.
However, starting from 2024, the government has announced a 2% rise in the tax rate for individuals with the highest marginal income. This results in both top marginal Singapore tax residents and non-residents (excluding those under employment) being subject to a 24% tax rate.
Related Read: 7 Ways to Legally Reduce Income Tax in Singapore »
Table of Contents
Who is a Singapore Tax Resident?
Singapore’s personal income tax rate is determined by the individual’s tax residency status. An individual will be recognised as a tax resident in Singapore if they are a:
- Singapore Citizen (Except for temporary absences)
- Singapore Permanent Resident (Has a permanent home in Singapore)
- Foreigner
- Stayed/worked in Singapore for 183 days or more in the year preceding the Year of Assessment (YA)
- Excludes company director
If you do not fall under the above-mentioned categories, you will be recognized as a Singapore non-resident for tax purposes instead.
Personal Income Tax Rate for Tax Residents
Singapore’s personal income tax rates are progressive for tax residents. This means that higher-income earners are subjected to a higher tax rate, with the maximum personal income tax rate at 22%. If your annual income is S$20,000 or higher, it is obligatory to submit a personal tax return. Please refer to the infographic below to see how your chargeable income is being taxed. You can also use our personal income tax calculator to estimate your tax payable, too!
Personal Income Tax for Non-Tax Residents
Non-tax residents in Singapore are also subjected to taxation. Taxes for non-tax residents are applicable on:
Employment Income
Non-residents’ employment income is taxed at either a flat rate of 15% or at the progressive resident tax rates, whichever is higher.
Director’s Fees, Consultation Fees, & Other Income Sources
For non-residents, a tax rate of 22% (24% from the year of assessment 2024) is imposed on incomes and fees earned. This ensures that parity is maintained between non-residents’ tax rates and residents’ top marginal tax rates.
Individuals who are non-residents do not qualify for any personal reliefs and deductions.
Related Read: A Personal Income Tax Guide for Foreigners in Singapore »
Let’s take a quick look at the infographic below that summarises the personal income tax rates in Singapore, based on the income tax bracket:
Need assistance filing your Personal Income Tax online?
Rikvin can help you optimise your Singapore personal income tax filing done right. We also assist objecting Notice of Assessment If you disagree with the tax assessment.
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