FAQs

Personal Tax FAQs

What is the Singapore income tax rate?

The Singapore individual income tax rates for YA 2013 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.

Year of Assessment 2013 onwards
Chargeable Income Rate (%) Gross Tax Payable ($)
On the first
On the next
20,000
10,000
0
2
0
200
On the first
On the next
30,000
10,000

3.5
200
350
On the first
On the next
40,000
40,000

7
550
2,800
On the first
On the next
On the next
80,000
40,000
40,000

11.5
15
3,350
4,600
6,000
On the first
On the next
On the next
160,000
40,000
120,000

17
18
13,950
6,800
21,600
On the first
In excess of
320,000
320,000

20
42,350

How are fringe benefits taxed?

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.

What are the personal taxes I will have to pay based on my declared salary?

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].

Taxation of Overseas Income for Services Rendered in Singapore

“I am engaged by a foreign consulting firm to render my services in Singapore. Will my consultation fees be taxed in Singapore if the fees are paid to me outside Singapore?”

Yes. You are liable to pay Singapore tax for the professional services rendered in Singapore. It does not matter where you are paid.

Singapore Personal Tax Tips

General Personal tax Information – for Individuals (Foreigners):

  • The amount of income tax that you have to pay depends on your tax residency in Singapore.
  • Top marginal resident tax rate of 20% kicks in at S$320,000 of taxable income.  Non-residents are taxed at the flat rate of 15% or the resident rates whichever results in a higher tax amount.
  • Income is assessed on a preceding calendar year basis, ending 31 December. You must File Your Annual Tax Form by 15 April of the following year. You can usually expect to receive the income tax bills from May to August.
  • Besides salaries and bonuses, perquisites such as housing and stock options will form part of your taxable employment income.
  • Overseas income derived outside Singapore, Singapore dividends and bank interests are tax exempt in Singapore.

Paying your taxes: Sign up for the 12-month interests free GIRO Deduction Plan to pay your income tax
by installments. Otherwise, full payment has to be made within one month from the date of the income tax bill.

Are you a Tax resident or non-resident?

Different tax rates apply for tax residents and non-residents. You will be treated as a tax resident for a
particular Year of Assessment (YA) if you are a:

  • Singaporean; or
  • Singapore Permanent Resident (SPR) if you have established your permanent home in Singapore; or
  • Foreigner who stayed/worked in Singapore for 183 days or more in previous year (excludes director of a company).

Otherwise, you will be treated as a non-resident for a particular YA for Singapore tax purposes.

Tax rates for non-resident individuals

  • Employment income
    Your employment income is taxed at 15% or resident rate, whichever gives rise to a higher tax amount.
  • Director’s fees, consultation fees & all other income
    The director’s fees, consultation fees and all other income that you received will be taxed at 20%.

If you are leaving Singapore or changing job

If you are about to leave Singapore or changing to another job within Singapore, your current employer
needs to notify IRAS and ensure that you settle all your taxes before you go. This process is known as tax
clearance. If you have any existing stock options or awards on hand which have yet to be exercised or vested,
you will be deemed to have derived gains from the stock or awards at the point of tax clearance.

Tax rates for resident individuals

Chargeable Income (S$) Rate (%) Gross Tax Payable (S$)
On the first
On the next
20,000
10,000
0
3.50
0.00
350.00
On the first
On the next
30,000
10,000
5.50
350.00
550.00
On the first
On the next
40,000
40,000
8.50
900.00
3,400.00
On the first
On the next
80,000
80,000
14
4,300.00
11,200.00
On the first
On the next
160,000
160,000
17
15,500.00
27,200.00
On the first
Above
320,000
320,000
20
42,700.00

For YA 2008 and 2009, a personal income tax rebate of 20%, up to a maximum of $2,000 is granted.

Ways to save tax

  • Tax residents are eligible for tax reliefs that can be offset against the assessable income. You can get reliefs for wife support, child maintenance etc. Conditions apply.
  • You may claim expenses incurred against your employment income; enjoy tax deductions for approved charitable donations. Conditions apply.
  • Under the Not Ordinarily Resident (NOR) Scheme, you can enjoy either Time Apportionment of Singapore employment income or Tax Exemption of Employer’s contributions to Overseas Pension Fund, or both. Conditions apply.
  • If you work for a foreign employer and need to travel overseas in the course of work, you may enjoy time apportionment of employment income under the Area Representative Scheme. Conditions apply.
  • With the Avoidance of Double Taxation Treaties signed by Singapore, your income may not be taxed twice in Singapore and your home country. Conditions apply.

Need help on your Tax assessment and submission?

Asiabiz Services can assist you in your personal income tax filings. Our personal tax filing services include:

  • Registration for new tax payers
  • Preparation and filing of income tax return based on your income and determination of 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 tax advice

If you would like us to assist you with your personal income tax return, please contact us at +65 6320 1877 to discuss your requirement in detail or send us an email at ptax@asiabiz.sg and we will get back to you.

Is income taxable as a visiting lecturer or speaker?

“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.

Tax exemption for visiting professionals

“I am a visiting professional. Will I be exempt from tax if I render my services for not more than 60 days in the calendar year in Singapore?”

The tax exemption for short-term employment of 60 days or less does not apply to visiting non-resident professionals who exercise their profession in Singapore. Only visiting non-resident professionals who are employees would qualify for the exemption.

Do I need to pay tax in Singapore as a visiting professional?

“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.

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We’ve got it all covered. With AsiaBiz, you get a dedicated one-stop solution for your company incorporation, immigration, offshore setup, accounting, taxation, and corporate compliance needs.

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