Singapore Personal Income Tax Guide

14-05-2015 CO-EASY BIZSERVICE

 

 

 

 

 

 

 

 

 

 

 

 

This article provide an overview of personal income taxation in Singapore. If you are interested to learn about corporate taxation, refer to Singapore corporate tax guide. To calculate estimated Singapore taxes and to compare how they stack up against those in your home country, refer to our online tax calculator.

Personal income tax rates in Singapore are one of the lowest in the world. In order to determine the Singapore income tax liability of an individual, you need to first determine the tax residency and amount of chargeable income and then apply the progressive tax rate to it. Key points of Singapore income tax for individuals include:

• Singapore follows a progressive tax rate starting at 0% and ending at 20% above S$320,000 (From 2016 onwards: will end at 22% above S$320,000).

• There is no capital gain or inheritance tax.

• Individuals are taxed only on the income earned in Singapore. The income earned by individuals while working overseas is not subject to taxation barring few exceptions.

• Tax rules differ based on the tax residency of the individual.

• Tax filing due date for individuals is April 15 of each year. Income tax is assessed based on a preceding year basis.

Personal income tax rates

Individuals resident in Singapore are taxed on a progressive tax rate as listed below. Filing of personal tax return is mandatory if your annual income is S$22,000 or more. You do not need to pay tax if your annual income is less than S$22,000. However, you may still need to file a tax return if you have been informed by Singapore tax department to submit your tax return.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: IRAS

Different income tax rules apply in Singapore depending on the tax residency status of the individual.

Personal Tax for Singapore Residents

You are considered a tax resident if you are:

• a Singaporean; or

• a Singapore Permanent Resident and have established your permanent home in Singapore; or

• a foreigner who has stayed or worked in Singapore for 183 days or more in the tax year

Tax residents pay taxes on their chargeable income as per the tax rate table above. What is chargeable income? The chargeable income (i.e. income subject to taxation) for tax residents is determined as below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Whereas

• Total income means

  • gains or profits from carrying on any business, trade, profession or vocation either as a sole proprietor or partner in a partnership

  • gains or profits from any employment

  • dividends, interests, investment income

  • rents, royalties, premiums and other profits arising from properties

  • exclude qualified income earned overseas (more deails provided later in the guide).

• Expenses means

  • qualified employment related expenses

  • qualified rental related expenses are expenses

• Donations means

  • donations to qualified charitable organizations

• Personal Reliefs means

  • special personal reliefs such as eligible course fees, earned income relief, parent relief, etc.

Chargeable income is this adjusted income after deductions from the total income (as shown in the picture above).