Singapore’s personal income tax is based on a progressive structure. This article will cover the types of income that are taxable, and how tax residents and non-tax residents pay personal income tax.
Singapore has one of the lowest personal income tax rates in the world. To determine the personal income tax payable, you first need to determine your residency status and the amount of chargeable income, and then apply the corresponding progressive resident tax rates. Key points of Singapore’s personal income tax include:
- Taxes are based on a progressive rate, starting from 0% and capped at 24% for income over S$1 million.
- There is no capital gains tax or inheritance tax.
- Individuals are only taxed on income earned in Singapore. With a few exceptions, income earned while working overseas is not taxable.
- Tax rules vary depending on tax residency status.
- The tax filing deadline for individuals is April 15/18 each year. Income tax is assessed based on the income of the previous year.
Table of Contents
Singapore Personal Income Tax Rates
Personal income tax for Singapore residents is levied at the following progressive resident tax rates. Tax residents with an annual income of over S$20,000 must file a personal tax return. If your annual income is below S$20,000, you are not required to pay tax. However, if you receive a notice from the tax authorities in Singapore to file a tax return, you may still need to file one. It is important to note that you may also be entitled to additional Earned Income Relief depending on your age.
Tax Resident Rates (Effective from Year of Assessment 2024)
| Chargeable Income | Tax Rate (%) | Gross Tax Payable (S$) |
| First S$20,000 Next S$10,000 |
0 2 |
0 200 |
| First S$30,000 Next S$10,000 |
– 3.5 |
200 350 |
| First S$40,000 Next S$40,000 |
– 7 |
550 2,800 |
| First S$80,000 Next S$40,000 |
– 11.5 |
3,350 4,600 |
| First S$120,000 Next S$40,000 |
– 15 |
7,950 6,000 |
| First S$160,000 Next S$40,000 |
– 18 |
13,950 7,200 |
| First S$200,000 Next S$40,000 |
– 19 |
21,150 7,600 |
| First S$240,000 Next S$40,000 |
– 19.5 |
28,750 7,800 |
| First S$280,000 Next S$40,000 |
– 20 |
36,550 8,000 |
| First S$320,000 Next S$180,000 |
– 22 |
44,550 39,600 |
| First S$500,000 Next S$500,000 |
– 23 |
84,150 115,000 |
| First S$1,000,000 In excess of S$1,000,000 |
– 24 |
199,150 |
Non-Tax Resident Rates (Effective from Year of Assessment 2024)
| Type of Income | Non-Resident Personal Income Tax Rate / Withholding Tax Rate from YA 2024 |
| Director’s Fees | 24% |
| Income from services provided in Singapore by non-resident professionals (e.g., consultants, trainers, coaches, etc.) |
15% of gross income or 24% of net income |
| Income from services provided in Singapore by non-resident public entertainers | 15% reduced rate (effective since 1 April 2022) |
| Other income, such as rental income from properties in Singapore | 24% |
| Withdrawals from Supplementary Retirement Scheme (SRS) for non-citizens | 24% |
| Interest, royalties, etc. | Final withholding tax is reduced to the following rates (as applicable): Interest: 15% Royalties: 10% , or 24% if the reduced withholding tax rate is not applicable |
| Pension | 24% |
Source: Inland Revenue Authority of Singapore (IRAS)
In Singapore, different income tax rules apply based on an individual’s tax residency status.
Singapore Resident Personal Income Tax
Tax residents pay tax on their chargeable income based on the resident tax rate table above. The chargeable income for a tax resident is defined as follows:
Total income is:
- Gains or profits from any business, trade, profession, or vocation as a sole proprietor or partner in a partnership.
- Gains or profits from any employment.
- Dividends, interest, investment income.
- Rent, royalties, premiums, and other profits arising from property.
- Excludes qualifying income earned overseas (details below).
Expenses are:
- Qualifying employment-related expenses.
- Qualifying rental-related expenses.
Donations are:
- Donations to recognized charitable organizations.
Personal reliefs are:
- Special personal reliefs, such as qualifying course fees, earned income relief, parent relief, etc.
Chargeable income is the income after deducting the above items from the total income (as shown in the diagram above).
Singapore Non-Resident Personal Income Tax
Foreigners who stay or work in Singapore for less than 183 days in a tax year are considered non-tax residents. The tax details are as follows:
- If you work in Singapore for a short period, not exceeding 60 days in a year, you are exempt from personal income tax. This exemption does not apply to company directors, public entertainers, or professionals. Professionals include foreign experts, foreign speakers, Queen’s Counsel, consultants, trainers, coaches, etc.
- If you reside in Singapore for 61 to 182 days in a year, all income earned in Singapore will be taxed. You can reduce your tax liability by claiming expenses and donations, but you are not eligible for personal reliefs. Employment income is taxed at 15% or the progressive resident rates (see table above), whichever results in a higher tax amount.
- Director’s fees and remuneration, consultant fees, and all other income are taxed at rates from 15% to 24%.
Filing Singapore Personal Income Tax Returns
Filing a tax return is an annual obligation for every eligible taxpayer. All completed forms must be submitted to the Singapore tax authorities by April 15.
For tax residents, if your annual income is below S$22,000, you are not required to pay tax. However, if you have received a notice to file from the tax authorities, you may still need to submit a return. Even if you had no income in previous years, you still need to declare zero income on your tax form and submit it by April 15 (paper) or April 18 (e-filing). If your annual income exceeds S$22,000, you must file a tax return.
You can choose to submit your return online or by mail. The Inland Revenue Authority of Singapore (IRAS) will send you the appropriate paper tax form upon request, and online filing is available from March 1 each year.
- Tax Residents – Form B1
- Self-Employed Individuals – Form B
- Non-Tax Residents – Form M
Late submission or failure to submit a return will result in penalties. The tax authorities may also take legal action against individuals for failing to file a tax return or pay their taxes.
After submitting your tax return, you will receive a Notice of Assessment or tax bill between May and September. The tax bill will show the amount of tax you must pay. If you disagree with the amount, you must notify the Singapore tax authorities within 30 days of the date of the tax bill and state the reasons for your disagreement.
The full tax amount should be paid within 30 days of receiving the Notice of Assessment. Whether you have notified the tax authorities of an objection does not affect the payment of tax. If the tax remains unpaid after 30 days, penalties will be imposed.
💡Tip: You can also apply for a GIRO payment arrangement, which allows you to pay your tax through interest-free monthly installments or a one-time annual payment.
Singapore Tax Treatment of Foreign-Sourced Income
Generally, foreign income received in Singapore on or after January 1, 2004, is not taxable. This includes foreign income deposited into a Singapore bank account. Individuals do not need to declare non-taxable foreign income.
However, in some cases, foreign income is taxable:
- The income is received through a partnership based in Singapore.
- The overseas employment is incidental to your Singapore employment. That is, the overseas job is part of your Singapore work.
- You are employed outside Singapore on behalf of the Singapore government.
In the above cases, you need to declare the qualifying taxable foreign income under “Employment Income” and “Other Income” (as applicable) on your tax form.
Singapore Tax Treatment of Employee Benefits
All gains and profits derived from employment are taxable, unless they qualify for a specific income tax exemption or administrative concession. Gains or profits include all benefits received from employment, whether in cash or otherwise. Examples of taxable benefits from an employer are as follows:
- Car provided by the employer.
- Reimbursement of medical and dental treatment costs for dependents other than yourself, your spouse, and your children.
- Overtime pay.
- Per diem allowance (daily allowance for employees traveling overseas or out of Singapore for business), provided the amount exceeds the acceptable rates.
- Fixed monthly transport allowance or reimbursement for private car mileage.
- Fixed monthly meal allowance.
⚠️Please note: Some non-cash benefits (such as accommodation) are taxed using special formulas, which reduces the tax on these benefits-in-kind. Therefore, providing executives with a well-structured compensation package (i.e., salary plus benefits-in-kind) can help reduce their personal tax liability in Singapore. More detailed information on this topic is beyond the scope of this guide.
Singapore’s Capital Gains Tax and Inheritance Tax
Capital gains can refer to “investment income” related to physical assets (like property), financial assets (like stocks or bonds), and intangible assets (like goodwill). Singapore does not impose any Capital Gains Tax.
Inheritance tax is a tax that must be paid upon an individual’s death, derived from the financial assets left behind. In Singapore, it is commonly known as Estate Duty. Singapore’s estate duty was abolished in 2008.
For further enquiries, please get in touch:
WeChat: sgleokwek
Telegram: sgleokwek
WhatsApp: Message us
