Singapore has one of the lowest personal income tax rates in the world. To calculate an individual’s Singapore income tax liability, first determine the tax residency and amount of chargeable income and then apply the progressive resident tax rate to it.
By following tax regulations and meeting tax responsibilities, individuals can ensure they are in compliance and prevent potential penalties enforced by the Inland Revenue Authority of Singapore (IRAS).
Table of Contents
Summary of Singapore’s Personal Income Tax
Individuals should be aware of the following aspects of Singapore income tax:
Progressive Tax Structure of up to 22%
Singapore’s personal income tax for tax residents is charged based on a progressive structure depending on the amount of income received by an individual. The tax rates start from 0% for those earning less than S$22,000 and rise to 22% for those earning more than S$320,000.
However, from 2024 onwards, the government has declared a 2% rise in the tax rate for individuals with the highest marginal income. Consequently, both top-tier Singaporean tax residents and non-residents will be subject to a 24% tax rate.
Calculate my Singapore income tax
Taxation is only for income earned in Singapore
All income received from employment where duties are performed in Singapore will be taxed, regardless of where the remuneration is received.
Any income received in Singapore from abroad is exempt from taxation. As a result, this income does not need to be reported on your tax returns. Even if the money is deposited into a Singapore bank account, it will not be taxed.
No Taxation on Capital Gains or Inheritance
Capital gains from the sale of property, shares, or financial instruments such as investments are generally not taxable in Singapore.
Residents’ taxes differ from those of non-residents
Residents are subject to the progressive tax rate structure.
For non-residents, the amount of personal income tax they must pay is calculated using either a flat rate of 15% or the progressive tax structure that is used for non-residents, whichever results in a higher tax amount.
What are some of the taxable sources of income?
Personal income tax is levied on all income derived from or earned in Singapore.
This income could come from a variety of sources, such as:
- gains & profits of trade, business, profession or vocation
- employment income
- rent, royalty premium & property profits
- pension, charge, or annuity
- certain dividends, interests, or discounts
- any other gains or profits of income nature
Personal Tax: Singapore Residents Vs. Non-Residents
- Residents can claim double tax relief; however, non-residents are not protected from double taxation.
- Residents are generally eligible for personal income tax reliefs such as Parent/ Handicapped Parent Relief, Handicapped Child Relief, and Working Mother’s Child Relief. Non-residents, on the other hand, are generally not eligible for any tax relief.
- Only residents are eligible for the basic income tax exemption limit.
- All employment income is taxable for residents, whereas for non-residents, any income received from employment in Singapore for a period of 60 days or less is exempt from taxation.
- Residents are eligible for tax rebates. Non-residents, on the other hand, are not eligible for tax rebates.
- For Residents, some other forms of Tax Relief include charitable donations, education (course fee relief) and business expense deductibles.
Start NowAll income earned in Singapore is subject to tax. However, Singapore offers one of the most attractive personal income tax rates in the world, whether for resident and non-resident individuals. This infographic has all that you need to know about Singapore Personal Income Tax. If you need help with your personal tax filing, send us a message and our tax specialists will gladly help.
FAQs
- You will be considered as a resident in Singapore for taxation purposes if you are:
- A citizen of Singapore or a permanent resident who resides in Singapore except for short-term absences.
- A foreigner who has worked or stayed in Singapore for 183 days or more.
You will be considered a non-resident for taxation purposes if:
- You have worked or stayed in Singapore for 183 days or less during the year preceding the Year of Assessment.
- 0% to 22%
Singapore’s personal income tax is progressive, ranging from zero to 22 percent for residents. As a result, the higher your personal income, the higher your tax bracket. The maximum tax threshold is $320,000. After that, it has a flat rate of 22%. - 15%
Non-residents are taxed on their employment income at either a flat rate of 15% or the resident rates, whichever results in a higher tax amount. - With your SingPass or IRAS Unique Account (IUA), you can e-file through the myTax Portal.
If you file electronically, your deadline would be 18 April.
Alternatively, you may contact our Business Advisory team who will be able to assist you with:
- Registration for new tax payers
- Preparation and filing of income tax return based on your income
- Determine possible deductions and reliefs that are applicable to you
- Request for extension of deadline, if necessary
- Preparation of Form IR8A for employees
- Tax planning and advice
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