Singapore’s Personal Income Tax structure is one of the friendliest and most competitive in the world. The tax year is from 1 January to 31 December in each calendar year and income is assessed on a preceding year basis. Singapore Tax adopts a progressive personal tax rates, relative to an individual’s amount of income.
This guide provides information on income tax rates for non-resident inividuals as well as personal income tax reliefs.
Non-residents are taxed at a flat rate of 15%.
Employer-provided fringe benefits are taxed in the employee’s hands. As a number of benefits are taxed on a concessionary basis in Singapore, it is possible to reduce an individual’s tax liability through appropriate structuring of his/her remuneration package.
The Singapore individual income tax rates for YA 2007 and onwards are shown below. Singapore individual / personal income taxes are charged progressively (0% – 20%), based on your chargeable income. The chargeable income is your income plus any other personal income, minus all deductions, relief’s and rebates.
| Chargeable Income (S$) | Rate (%) | Gross Tax Payable (S$) | |
|---|---|---|---|
| On the first | 20,000 | 0 | 0 |
| On the next | 10,000 | 3.5 | 350 |
| On the first | 30,000 | 350 | |
| On the next | 10,000 | 5.5 | 550 |
| On the first | 40,000 | 900 | |
| On the next | 40,000 | 8.5 | 3,400 |
| On the first | 80,000 | 4,300 | |
| On the next | 80,000 | 14 | 11,200 |
| On the first | 160,000 | 15,500 | |
| On the next | 160,000 | 17 | 27,200 |
| On the first | 320,000 | 42,700 | |
| Above | 320,000 | 20 | |
My engagement in Singapore as a visiting professional spreads over 5 months. My home country has a tax treaty with Singapore. Do I still need to pay tax in Singapore?
Whether you need to pay tax in Singapore would depend on the provisions of the tax treaty. For example, under the tax treaty between Singapore and United Kingdom, the income derived by you from Singapore will be tax exempt provided that you do not have a fixed base regularly available to you in Singapore for the purpose of performing your activities; or that you are not present in Singapore for not more than 183 days in any period of 12 months commencing or ending in the fiscal year concerned.
I am invited by a government body/Ministry in Singapore to conduct seminars/workshops in Singapore. Is my income taxable?
You will be taxed on the income derived from Singapore unless it is exempted from tax.
Singapore Personal income tax rates follow a progressive pattern where the rate ranges from 0%-20%. The maximum tax rate, for income above $320,000, has been reduced over time and has reached the present rate of 20%.
For a more information, please read [intlink id="241" type="page"]Singapore Personal Income Tax[/intlink].
To encourage foreign capital inflow into Singapore, there are tax incentives provided to various industries namely in the form of reduced corporate tax rates.
| Finance & Treasury Centre Co. | 10% |
| Fund Manager | 10%/exempt |
| Headquarters Co. | 10% |
| International Commodity Trader | 10% |
| Offshore Leasing | 10% |
| Oil Trader | 10% |
| Securities Company | 10%/exempt |
| Trustee Company | 10% |
| Arts & Antique Dealers | 10% |
| Asian Currency Unit | 10%/exempt |
| Insurance & Re-insurance Co. | 10%/exempt |
| Members of Commodity Futures Exchange | 10% |
| Pioneer/Incentive Co. | exempt/various |
| Financial Sector Incentive Co. | 5%/10% |
| Cyber Trader | 10% |
| Commodity Derivatives Trader (New) | 5% |
Singapore DOES NOT have a Capital Gains tax.
What is the tax Rates for Companies for Year of Assessment 2009 and for those who do not qualify for the New Start up exemption rates?
| Amount of chargeable income | Effective tax rate |
|---|---|
| First S$10,000 | 4.5% |
| Next S$290,000 | 8.5% |
| In excess of S$300,000 | 17% |