Personal Taxes in Singapore

This article covers personal taxation in Singapore including tax rates, tax residency, taxable income and tax filing requirements.

Singapore offers some of the lowest individual tax rates in the world, making it an ideal location for high-income earners. In this article, we will discuss salient points about personal taxes in Singapore including:

Key Facts About Personal Taxes
Tax Residency and Tax Rates
Taxes on Foreign Income
Income Exempt From Tax
Tax Deductions
Tax Filing Requirements and Procedure
Frequently Asked Questions

Key Facts About Personal Taxes

Singapore tax residents are taxed at a progressive rate of 0% to 22%
Non-tax residents are taxed at a rate that varies between 15% to 22%
There are no taxes on capital gains, dividends or inheritance
With a few exception, foreign-sourced income is exempt from taxes levied by Singapore

Tax Residency and Tax Rates

The amount of tax an individual must pay depends on his or her tax residency status. In Singapore, the following individuals are considered to be tax residents of the country:

Singapore citizens
Singapore permanent residents
Any foreigner who has worked or stayed in Singapore for 183 days or more

Tax rates for Singapore tax residents

Tax residents are taxed at a progressive rate that ranges from 0% to 22%. The table below provides the current tax rates for individual income at various income brackets:

Taxable income	Income tax rate
First S$20,000	0%
Next S$10,000 (up to S$30,000)	2%
Next $S10,000 (up to S$40,000)	3.5%
Next S$40,000 (up to S$80,000)	7%
Next $S40,000 (up to S$120,000)	11.5%
Next S$40,000 (up to S$160,000)	15%
Next S$40,000 (up to S$200,000)	18%
Next S$40,000 (up to S$240,000)	19%
Next S$40,000 (up to S$280,000)	19.5%
Next S$40,000 (up to S$320,000)	20%
Above S$320,000	22%

Important Note:

Starting from 2024 tax year the top marginal personal income tax rate will be increased for Singapore tax residents with income of more than S$500,000 per year. Chargeable income from S$500,000 up to S$1 million will be taxable at a rate of 23%; income in excess of S$1 million will be subject to a tax rate of 24%.

Non-resident status

A non-resident is an individual who has stayed or worked in the country for under 183 days. Non-residents must pay taxes at the following rates:

Non-resident tax rates

Number of days in Singapore	Tax rate
60 days or fewer	0%
61-182 days	Flat rate of 15% OR A progressive tax rate capped at 22%–whichever results in the higher amount

Certain types of non-resident income are taxed at a rate ranging from 15% to 22%—even if the individual has stayed in Singapore for under 60 days. These types of income are called “non-exempt income” and include:

Tax rates for non-exempt income

Income type	Tax rate
Director’s fees	22%
Income earned as a public entertainer	15%
Income earned as a consultant, trainer or coach	15%

Tax on Foreign Income

In general, income earned from employment outside of Singapore is not taxable. This includes income that has been received in a Singapore bank account. Furthermore, qualifying foreign sourced income does not need to be declared.

However, foreign income is taxed under the following conditions:

The foreign employment is incidental to Singapore employment. This means the position requires the individual to work and travel outside of Singapore but the position is based in Singapore.
The individual works in Singapore for a foreign employer
The income was received in Singapore through a partnership (unless the income qualifies for exemption)
The individual earned the income outside of Singapore while working for the Singapore government.
The individual received income in Singapore for professional, technical, consultancy or other services completed in a location overseas that does not qualify as a fixed place of operation. This includes locations that are used temporarily or for preparatory and auxiliary activities to the main service.

Income Exempt From Tax

Capital gains: Singapore does not tax any income that can be considered capital gains including the sale of fixed assets, stock or bonds or intangible assets such as goodwill.

Dividend income: Singapore does not tax dividends issued by Singapore companies; in certain cases, dividends from Hong Kong and Malaysia based companies are also not taxed.

Inheritance: In 2008, Singapore removed inheritance tax — also known as estate duty — on the assets of a deceased individual. Common estate assets that are no longer taxed include:

immovable property
bank accounts
publicly listed shares
items in a safe deposit box

Tax Deductions

In addition to the already low rates, to reduce the tax burden on individuals even further, Singapore allows for the following tax deductions:

Employment expenses: Individuals can deduct expenses incurred as a part of their employment as long as the expense meets the following criteria:

The expense was incurred while carrying out the requirements of the job
The expense was not reimbursed by the employer
The expense was not a capital expenditure (such as the purchase of a fixed asset)
The expense was not for personal use

Examples of deductible employment expenses include:

meal expense
transport expense
car services
medical reimbursements
housing expense that is related to employment

Donations: Individuals can claim donations to qualifying charitable organizations as deductions. Examples of donations include:

cash donations
shares donations
artifact donations
land and building donations

Expenses incurred from rental income: Individuals can claim rental income expenses under the following conditions:

The expense was solely for the purpose of producing rental income and
The expense was incurred while a tenant was living in the property

Self-improvement tax relief: Singapore tax residents can receive tax rebates and relief for the following items:

Course fee relief — Reimbursements on course fees for individuals who invest in upgrading their skills and improve their employability
CPF Cash Top Up — Tax relief for individuals who set money aside for retirement
Supplementary Retirement Scheme (SRS) Relief — Tax relief to encourage individuals to save for retirement beyond their CPF saving

Deduction for angel investors: Singapore allows angel investors to deduct their investments in new startups under the following conditions:

The angel invests at least $100,000 of qualifying investment in a qualifying startup company within 12 months of the initial investment and
The angel holds the investment for a continuous period of two years from the date of the last qualifying investment.

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Filing Taxes

Similar to corporate income taxes, individuals must file taxes every year with the Inland Revenue Authority of Singapore (IRAS). There are two deadlines to file individual income taxes:

E-filing deadline: April 18
Paper filing deadline: April 15

Taxes are assessed based on the income earned from January 1 to December 31 of the previous year (i.e., personal taxes filed in 2019 cover the income earned from January 1 to December 31 of 2018).

Individuals who make less than S$22,000 do not have to pay taxes in Singapore; however, they are still required to file taxes with IRAS.

Personal taxes can be filed online or by mail. To file, IRAS requires each taxpayer to file one of the following forms based on his or her occupation and tax residency status:

Form B1 – Employed individuals
Form B – Self-employed individuals
Form M – Non-resident individuals

After taxes have been filed, the Singapore government will issue to the individual a tax bill known as a Notice of Assessment (NOA) between May and September. Once the the NOA has been received, the individual has 30 days to pay the taxes due.

If the individual disagrees with the NOA, he or she can file an Objection of Assessment to correct the tax bill. An Objection of Assessment must be filed within 30 days of receiving the tax bill. Note that the individual is still obligated to pay the full amount on the NOA within 30 days even if he or she disagrees with the tax bill.

If taxes are not paid within 30 days, IRAS will issue a penalty currently at 5%.

Frequently Asked Questions

Personal tax liability in Singapore depends on a person’s tax residency status. Personal income tax rates for Singapore resident taxpayers are progressive. At low income, no or nominal personal tax is charged and the highest personal income tax rate is 22%, i.e. no income is taxed above this rate. You can review the current tax rates for Singapore tax residents in the “Tax residency and tax rates” section.

The employment income of non-residents who have stayed for more than 60 days in Singapore is taxed at a flat rate of 15% or the progressive resident tax rates, whichever results in a higher tax amount. Please note that certain types of non-resident income, such as director’s remuneration and consultation fees, are taxed at a rate ranging from 15% to 22% even if the individual has stayed in Singapore for under 60 days. For more details, see the IRAS website or talk to us.

Singapore tax residents as well as Singapore non-residents who have Singapore-sourced income must file their tax return every calendar year. Even though tax residents who earn less than S$22,000 are not required to pay taxes, they still need to file a tax return if they have been informed about the need to submit such a return.

Please keep in mind that if you receive a letter or SMS from IRAS informing that you have been selected for No-Filing Service (NFS), you are not required to file a tax return.

You can file your annual income tax return using any of the following options:

E-Filing at myTax Portal
Paper Form through mail.

If you choose to file your returns via mail, IRAS will send you the corresponding paper tax form upon request. The online form to be filed in a particular year is available on March 1 of that year.

According to IRAS, each taxpayer must file one of the following forms depending on his or her occupation and tax residence status:

For tax resident individuals — Form B1
For self-employed — Form B
For non-resident individuals — Form M.

To determine whether someone is an employee or is self-employed, you have to consider the individual’s contract and the nature of their relationship with the employer.

According to IRAS, you are employed (i.e. you are an employee) if you enter into a contract for service with your employer where your work is performed under the direction of your employer. On the contrary, you are considered self-employed if you do not perform work for others under such a contract for service.

As a self-employed person, you work for yourself and realize a business profit or loss. Generally, your income is derived from buying and selling goods or from providing services. You can consult the extensive list of examples of circumstances that will come under the definition of self-employed individuals on the IRAS website.

Note that all self-employed individuals are required to report the income earned from their business operations as business income. This income is part of their total personal income and is taxed at individual income tax rates.

Yes, all self-employed individuals must declare their business income for the relevant accounting period. Generally, the accounting period is a 12-month period for which profits or losses are calculated. You need to keep comprehensive records and accounts of your business transactions. They must be supported by invoices, receipts, vouchers, and other documents. Finally, at the end of every accounting period, you must prepare the statement of accounts comprising your profit and loss accounts and the balance sheet. If you engage a Corporate Services firm, the firm can provide bookkeeping services in Singapore to ensure that all these records are managed properly.

Please keep in mind that self-employed individuals can take advantage of the Pre-filling of Self-Employed Income, which automates the transfer of income information to the tax system. You can review the detailed information about this scheme.

In case of late or non-filing of tax returns, IRAS may take the following measures:

Impose a late filing fee that can range from S$150 to S$1,000 and depends on the prior history of your filing and tax payment. Repeat offenders are likely to receive higher fees.
Issue an Estimated Notice of Assessment (NOA).
Issue a summons to attend the Court if IRAS has not received the required tax return and the payment of the late filing fee by the due date.

Note that if you do not pay the penalty or fine imposed by the Court, you may be subject to imprisonment.

You must pay your taxes within one month from the date of the Notice of Assessment (NOA). Even if you have filed an objection, you are still required to pay the tax. If it is not paid by the due date, a 5% penalty is assessed. Subsequently, an additional 1% penalty will be imposed for every month that the tax is still unpaid, up to a maximum of 12% of the tax overdue.

Furthermore, an individual may face additional enforcement actions. These can include a) Travel Restriction Order (TRO) against your travel outside the country, b) legal actions against you by the IRAS, c) directives to your bank, employer, or lawyer to pay your debt to IRAS.

Generally, overseas income received in Singapore is not taxed in Singapore if the source of the income is outside Singapore. This exception includes income paid into a Singapore bank account. However, there are some circumstances under which overseas income may be taxable:

You work in Singapore for a foreign employer, or your overseas employment is incidental to your Singapore employment.
Your overseas employment income is for services rendered in Singapore.
You are employed outside Singapore on behalf of the Government of Singapore.
You have received the income in Singapore through a partnership.

If you work for more than one company, the process of filing your income depends on whether or not your employers are participating in the Auto-Inclusion Scheme for Employment Income. 3 different scenarios are possible:

If all companies you work for are part of the Auto-Inclusion Scheme for Employment Income, you do not have to report the details about your income, since this information is already submitted by your employers and included in your tax assessment.
If some of the companies are members of the Auto-Inclusion Scheme for Employment Income, you are required to fill in your total employment income only from the non-participating employers.
Finally, if none of the companies is in the Auto-Inclusion Scheme, you have to report in the Main Tax Form the total amount of your income from all employers.

Generally, an individual is regarded as a Singapore tax resident if he or she is physically present in Singapore for at least 183 days in a calendar year. Nonetheless, there are certain cases when a Singapore employee who spends less than 183 days in Singapore may also be treated as a tax resident. For example, if your travel is incidental to your Singapore employment and your absence is a result of frequent business trips for your Singapore employment. To learn more about tax residency in Singapore, please see our “Tax residency and tax rates” article.

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