Income Tax — a tax on personal earnings for individuals, income tax rate in Singapore is progressive starting at 0%. The maximum is 22% for yearly income over S$320,000. Foreigners pay the same tax on the income earned in Singapore.
Who pays Singapore income tax?
You have to pay Singapore income tax if you are a resident:
- a Singaporean
- a Permanent Resident that has settled in the country
- a foreigner who has spent 183 days in Singapore or more in the tax year The employment income of non-residents (i.e. individuals who spent less than 183 days in the country) will be taxes as follows:
- exempted from tax if you spent 60 days or less working. This does not apply to company directors, public entertainers, or professionals such as coaches, foreign speakers, consultants, etc.
- at 15% or the regular progressive rate (whichever is higher) if you spend 61-182 days in Singapore
- 15%-22% on director fees and consultant fees
What is the income tax rate in Singapore?
|Chargeable income (S$)||Estimated tax (S$)||Effective tax rate|
How is income tax calculated?
You are taxed on the chargeable income, meaning: your total income – qualifies expenses – donations – personal reliefs.
- Your total income is anything you gain as a sole proprietr, partner in a partnership, or employed professional, dividends, interest, investment and rental income. It does not include qualified income earned overseas
- You can deduct expenses like qualified employment or rental related expenses
- You can deduct donations that you made to qualified charitable organizations
- You can deduct personal reliefs such as certain course fees, parent relief, etc.