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Singapore Income Tax
Guide to Personal Income Taxes in Singapore
NOTE: This page describes personal tax
rates and benefits that are currently in effect. For information on new
tax benefits announced in 2008 budget speech, refer to
Tax Cuts
& Reliefs announced
in 2008
Budget.
Individuals are either "resident" or "non-resident" in Singapore for tax
purposes. Generally, a person is resident if he or she is
physically present or exercises employment in Singapore for 183 days or
more in the calendar year.
For individuals, all income derived from Singapore is liable
to tax. With effect from 1 January 2004, all overseas income
remitted by individuals in Singapore is not taxable, except
for overseas income received in Singapore through
partnerships in Singapore.
Personal income is taxable at progressive rates from 0% to 20% and
entitled to claim certain personal reliefs.
Current Personal Income Tax Rates in Singapore
| Personal Income |
Income Tax Rate |
| <20,000 |
0 |
| 20,000 - 30,000 |
3.5% |
| 30,000 - 40,000 |
5.5% |
| 40,000 - 80,000 |
8.5% |
| 80,000 - 160,000 |
14% |
| 160,000 - 320,000 |
17% |
| 320,000+ |
20% |
Non-resident individuals are taxed at a flat rate of 15%.
Interest derived by a non-resident individual on monies held on deposits
in an approved bank in Singapore is tax exempt.
Husband and wife in Singapore are generally treated as one taxpayer, although the
wife may elect to be separately assessed on her personal income.
Regional representatives based in Singapore and employed by the
representative office of an overseas company may be taxed concessionally
on income pro-rated based on days spent in Singapore provided certain
requirements are met.
Taxation for Foreigners Working in Singapore
Foreign employees working in Singapore either on work permit or
employment pass will be taxed as above in Singapore unless:
- The person is on short-term employment no exceeding 60 days
in a calendar year
- his/her earnings are exempt from tax under the Avoidance of
Double Taxation Agreement
As a tax resident, you will be taxed on all personal income derived in
Singapore and any overseas income which is brought into Singapore.
When a foreign employee stops his term of employment in
Singapore, his employer is required to inform IRAS before the
termination of employment or departure from Singapore. The employer
shall also withhold whatever money due to the employee until tax
clearance is given.
Fringe Benefits
Employer-provided fringe benefits are taxed in the employee's hands. As
a number of benefits are taxed on a concessionary basis (e.g. housing)
in Singapore, it is possible to reduce an individual's tax liability
through appropriate structuring of his/her remuneration package.
Central Provident Fund (CPF)
Foreigners on Employment Pass, Professional Visit Pass or Work Permit
are exempt from CPF contributions in Singapore.
Double Taxation
Double taxation can be avoided or minimized by unilateral tax credits
and double tax treaties, depending on the type of foreign source income
and the source country. Only Singapore resident companies and
individuals are entitled to claim such tax credits.
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