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Singapore Personal Individual Income Tax Rate

Singapore is not only a top-notch financial hub in the region that attracts the eye of foreign investors but an ideal place to work, too. Singapore’s personal income tax rate has made the list as one of the lowest in the world.

 

Who is Eligible to Pay Personal Income Tax?

Anyone who earns, derives, or receives income in Singapore will need to pay income tax every year, unless specifically exempted under the Income Tax Act or by an Administrative Concession. The Singapore income tax liability of an individual is determined by the tax residency, amount of taxable income, and then applies the progressive tax rate to it. All individual with annual income S$22,000 or more is mandatory to file their personal income as required.

Personal Income Tax Rates for Resident

The tax liability of an individual depends on an individual’s tax residency status. He or she will be treated as a tax resident for a particular Year of Assessment (YA) if he or she is a:

  1. Singapore Citizen (except for temporary absences)
  2. Singapore Permanent Resident (SPR) who stays in Singapore with a permanent home; or
  3. Foreigner who has resided / 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, he or she will be treated as a non-resident of Singapore for tax purposes. Apart from that, Singapore follows a progressive tax rate starting at 0% and ending at 22% above S$320,000 as listed below.

 

Resident Tax Rates

From YA 2017

Chargeable Income Income Tax Rate (%) Gross Tax Payable ($)
First $20,000 
Next $10,000

2

200
First $30,000 
Next $10,000
– 
3.50
200 
350
First $40,000 
Next $40,000
– 
7
550 
2,800
First $80,000 
Next $40,000
– 
11.5
3,350 
4,600
First $120,000 
Next $40,000
– 
15
7,950 
6,000
First $160,000 
Next $40,000
– 
18
13,950 
7,200
First $200,000 
Next $40,000
– 
19
21,150 
7,600
First $240,000 
Next $40,000
– 
19.5
28,750 
7,800
First $280,000 
Next $40,000
– 
20
36,550 
8,000
First $320,000 
In excess of $320,000
– 
22
44,550

 

Personal Income Tax Rates for Non-Resident

  1. Employment Income – Professionals will be subject to a tax rate of either 15 % of gross income or 22 % of net income (over the previous 20%)
  2. Director’s fee, Consultation fees and All Other Income –
    From YA 2017 onwards, the tax rates for non-resident individuals (except certain reduced final withholding tax rates) has been increased from 20% to 22% to maintain parity between the tax rates of non-resident individuals and the top marginal tax rate of resident individuals.
  3. Non-resident public entertainers will be taxed at a tax rate of 10%.

 
Dealing with tax is not an easy thing without the expert’s advice and assistance. Feel free to contact us if you are unsure of how to file your personal income tax.