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.
Related Read: 7 Ways to Legally Reduce Income Tax in Singapore »
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Who is a Singapore Tax Resident?
Singapore’s personal income tax rate is determined by the individuals’ tax residency status. An individual will be recognized as a tax resident in Singapore if you 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%. 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% is imposed on incomes and fees earned. This ensures that parity is maintained between non-residents’ tax rates and residents’ top marginal tax rate.
Related Read: A Personal Income Tax Guide for Foreigners in Singapore »
Let’s take a quick look at the infographic below that summarizes the personal income tax rates in Singapore:
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.
Benjamin has over 20 years of tax experience, spending more than 13 years working for the Big 4 accounting firms and being an in-house tax advisor. Benjamin has also worked with SMEs, multinational corporations, and publicly-listed companies from diverse industries, offering tax advisory and planning, corporate restructuring, M&A, business model optimization, tax ruling requests, tax incentives application, tax risk mitigation, and tax reporting services on complex projects.
