Singapore Personal / Individual Tax

Personal Income Tax / Individual Income Tax in Singapore

Singapore’s personal income tax rates for resident taxpayers are progressive. This means higher income earners pay a proportionately higher tax, with the current highest personal income tax rate at 22% whereas the starter or lowest at 2%.

 

Obligation to File Tax Income Tax Return by individuals in Singapore

Every individual must file an Income Tax Return if you receive a letter, form or an SMS from IRAS informing you to do so. It does not matter how much you earned in the previous year or whether your employer is participating in the Auto-Inclusion Scheme (AIS) for Employment Income.

To file your tax return by the due date every year (18th April for e-filing), please log into myTax Portal using your SingPass.

You can check your filing requirement at www.iras.gov.sg if you have not been contacted by IRAS.

 

Obligation to Pay Income Tax For Individuals Working in Singapore

All individuals who receive payments (whether in the form of cash or benefits-in-kind) for any service rendered in or any form of employment from Singapore need to pay income tax, unless specifically exempted under the Income Tax Act.

 

Income Tax Rates based on residency status

Income tax rates depend on an individual’s tax residency status. You will be treated as a tax resident for a particular Year of Assessment (YA) if you are a:

a)       Singapore Citizen (SC) or Singapore Permanent Resident (SPR) who resides in Singapore except for temporary absences; or

b)      Foreigner who has stayed / worked in Singapore (excludes director of a company) for 183 days or more in the previous year. i.e. the year before the YA.

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

Click here to view the individual Resident income tax rates in Singapore.

 

Tax Rates for Non-Residents

Taxes on Employment Income

The employment income of non-residents is taxed at the flat rate of 15% or the progressive resident tax rates (see table above), whichever is the higher tax amount.

 

Taxes on Director’s fee, Consultation fees and All Other Income

From YA 2017, the tax rates for non-resident individuals (except certain reduced final withholding tax rates) has been raised from 20% to 22%. This is to maintain parity between the tax rates of non-resident individuals and the top marginal tax rate of resident individuals.

Type of Income

Non-resident individual tax rate / withholding tax rate from YA 2017
a)
  • Director’s remuneration
  • 22%
b)
  • Income derived from activity as a non-resident professional (consultant, trainer, coach, etc.)
  • 15% of gross income or 22% of net income
c)
  • Income derived from activity as a non-resident public entertainer (artiste, musician, sportsman, etc.)
  • 10% concessionary rate (No change)
d)
  • Other income e.g. rental income derived from a Singapore property
  • 22%
e)
  • SRS withdrawal by a non-citizen SRS member
  • 22%
f)
  • Interest, royalty etc.
  • Reduced final withholding tax rate (subject to conditions) as follows:
  • Interest: 15%
  • Royalty: 10%
  • [OR]
  • 22% if reduced final withholding tax rate is not applicable.
Click here to view the Withholding Tax Rates for Individuals

You may use the Tax Calculator for Resident and Non-Resident Individuals at www.iras.gov.sg to estimate your tax payable.

 

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