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Personal Income Tax Services in Singapore

Package Fee for Personal Income Tax Services

Packages Available Fee (SGD)
Personal Income Tax Submission From $500 (W/GST $535)
Partnerships Form P Submission From $500 (W/GST $535)
GIRO setup for personal income tax payment * $200 (W/GST $214)

* There are several ways to sign up for GIRO:
– Online GIRO application via Internet Banking (for DBS/POSB and OCBC customers)
– Online GIRO application at AXS stations (for DBS/POSB customers)
– Use GIRO form on the Payment Slip sent with your Notice of Assessment (for DBS/POSB, HSBC, OCBC and UOB customers)
– Download GIRO application form here and send the completed form to us

 

How GIRO works?

You can enjoy up to 12 monthly interest-free installments, or opt for one-time GIRO deduction.
The 12 monthly GIRO installment cycle starts in May and ends in April of the following year. If you join GIRO after May, the installment deduction will commence in the month after your GIRO form is approved and end in April of the following year.

 

Quick links

Employers’ Responsibilities
Employees’ Responsibilities
Partnerships’ Responsibilities
Personal Income Tax FAQs
Personal Income Tax Planning

 

Singapore Personal Tax Information You Must Know

Personal income tax rates in Singapore are one of the lowest in the world. In order to determine the Singapore income tax liability of an individual, you need to first determine the tax residency and amount of chargeable income and then apply the progressive tax rate to it. Key points of Singapore’s income tax for individuals include:

  • Singapore follows a progressive tax rate starting at 0 percent and ending at 20 percent (above  S$320,000).
  • There are no capital gains or inheritance taxes.
  • Individuals are taxed only on the income earned in Singapore. The income earned by individuals while working overseas is not subject to taxation (barring a few exceptions).
  • Tax rules differ based on the tax residency of the individual.
  • Income tax is assessed on a preceding-year basis.

Income tax rates for details about the personal income tax rate.
Kindly take note of the following key dates which related to the filing of personal tax.

  • Preparation of IR8A by the employer no later than 1st March each year
  • The deadline for filing Form B, B1 by the employee is 15 April. If you e-File, you have up to 18 April to do so.
  • The deadline for filing Form P by a partnership is 15 April. If you e-File, you have up to 18 April to do so.

 

Employers’ Responsibilities

As an employer, you must prepare Form IR8A and Appendix 8A, Appendix 8B or Form IR8S (where applicable) by 1st Mar each year for all your employees who are employed in Singapore.

Form IR8A To be used to declare remuneration of ALL employees.
Appendix 8A To be completed if employee is provided with benefits-in-kind.
Appendix 8B To be completed if employee has derived gains or profits either directly or indirectly from the exercise, assignment or release of any share option right or benefit, or right or benefit from other forms of Share Ownership Plans where such right or benefit was obtained by reason of any office or employment. To be completed and submitted to Comptroller of Income Tax for employees who are Singaporeans or Singapore Permanent Residents and who have ceased employment or were posted overseas in year 2011.
Form IR 8S To be completed if excess CPF contributions are made by the employer.

From Year of Assessment (YA) 2016, employers who had 11 or more employees for the entire year or who received the “Notice to File Employment Income of Employees Electronically” must submit their employees’ income information to the IRAS electronically.

The IRAS encourages all employers to join the Auto-Inclusion Scheme (AIS) for Employment Income. Under this scheme, employers submit their employees’ income information to IRAS electronically. The employment income information will be shown on the employees’ electronic tax return and automatically included in their income tax assessments. If you participate in the AIS for Employment Income, you do not need to issue Form IR8A to your employees.

For more information, please see e-Submission of Employment Income.
For enquiries on the AIS for Employment Income, please contact the IRAS on 1800 356 8015 or email ais@iras.gov.sg.
You may refer to e-Submission of Employment Income to learn how to complete the form for your employee.
Please refer to Quicklinks for a downloadable copy of the forms (Microsoft Word format).

 

Employees’ Responsibilities

As an employee, you must submit your personal paper-based tax return by 15 April (If you e-File, you have up to 18 Apr to do so) each year.

You may file your tax return using any of the following modes:

  • e-Filing:
    • You can e-File via myTax Portal with your SingPass/IRAS PIN. An instant acknowledgement will be sent to you after you have e-Filed successfully.
    • Guides/ FAQ on e-Filing
    • Please e-File by 18 Apr using SingPass/IRAS PIN.
    • IRAS recommend that you obtain a SingPass. A SingPass is a common password for transacting with all Government e-services. You may apply for a SingPass online. You should receive your SingPass within four working days. Click here for more about SingPass FAQ.
    • If you are not eligible for a SingPass, you may apply for an IRAS PIN online. The IRAS will send you the IRAS PIN mailer within five working days.
    • You will require Form IR8A if your employer is not participating in the Auto-Inclusion Scheme for Employment Income. Employees may check whether your company is in the Auto-Inclusion Scheme and whether your employer has submitted the information at e-Services – Participating Organizations
  • Filing using a paper-based tax return:
    • If you need to file a tax return, the IRAS will send you the appropriate paper-based tax return during February or March. If you are certain you have to file but do not receive a notification by 15 Mar, please contact IRAS for assistance.
    • Please remember to SIGN on Page 1 of the paper tax return and send to the IRAS by 15 Apr.
    • Types of paper-based tax returns:

1)      Tax resident individuals should receive Form B1
2)      Self-employed (may be a sole-proprietor or a partner in a partnership) should receive Form B
3)      Non-resident individuals should receive Form M
You may be interested in finding out about common filing mistakes and how to report income not previously reported.

 

Partnerships’ Responsibilities

Filing income Tax
While a partnership does not pay tax, it still has to file an annual income tax return (called the Form P) to show all income earned and business expenses deducted by the partnership during the year. The partnership is required to file Form P if it has received the paper Form P or an invitation to e-File, even if it has not commenced business in the year.

The Form P is usually sent to the precedent partner by mid-March every year for the precedent partner to file on behalf of all the partners. The precedent partner is required to inform all the partners of their share of income from the partnership to enable them to declare it in their Individual income tax returns.

Form P is not available for downloading from the IRAS website. If you require a copy of the Form P, please call the Individual Income Tax Helpline at 1800-356 8300.

See the Explanatory Notes on Form P for more details on how to complete Form P.

You also have to report the four-line statement for the different periods concerned showing clearly the various partners’ allocation of profit/loss, and complete Pages 3 and 4 of the Form P with respect to all the partners concerned for each relevant period. If the business revenue is S$500,000 or more, you must also send in the Certified Statement of Accounts for the different periods concerned.

‘Certified’ means signed by you (partner), indicating that the accounts are true and correct.

The ‘Statement of Accounts’ comprises the Trading and Profit and Loss Account and the Balance Sheet

The deadline for filing Form P is 15 April. If you e-File, you have up to 18 April to do so.

 

Allocation of profit and loss to partners

After the IRAS processes Form P, it will send the ‘Allocation of Profit/Loss to Partners’ to the precedent partner.

The precedent partner is obliged to inform the other partner(s) of their share of profit or loss. The share of profit and loss to each partner will be taxed under each individual partner’s name.

 

Objection to the allocation of profit/ loss to partners

If you object to the allocation of profit and loss to partners, you must lodge your objection through the precedent partner. The precedent partner must write to us stating clearly the grounds of objection within 30 days from the date of the allocation notice.

 

If your partnership consists of non-resident partners

See details on how does Section 45 withholding tax apply to partnerships.

 

For a new partnership

Please fill in the Registration Form for New Partnership. You may download this form or you may call the Business Income Tax Help-Line at 1800-356 8300 to request the form be sent to your fax number.
The IRAS will post Form P to the precedent partner when IRAS receives your registration form.

Personal Income Tax FAQs

Q1: What is the Singapore personal tax rate?

A1: Resident individuals are taxed on a progressive tax rate basis from 0% to 20% (for income above S$320,000 per year). Non-resident individuals are taxed at 15% or the progressive tax rates, whichever results in a higher tax amount. A detailed chart of progressive tax rates is available Income tax rates.

Q2: Who is liable to file personal income tax return in Singapore?

A2: You are liable to file a tax return in Singapore, if you were resident in Singapore for more than 60 days during the calendar year and your Singapore income exceeded S$22,000. The 60 day rule does not apply if you are a director of a company, a public entertainer or exercising a profession in Singapore.

Q3: How to determine Singapore resident for tax purpose?

A3: You are considered as tax resident of Singapore if you stayed in Singapore for more than 183 days in the tax year and earned income in Singapore.

Q4: I am director of the company, am I be taxed differently in Singapore?

A4: For Singapore resident directors, normal tax rule is applied. The income is subjected to the same progressive tax rates as any other local individual. Generally, there are 2 options are available for receiving the employment income, either he/she can receive
– Director’s salary (subjected to CPF); or
– Director’s fee (not subjected to CPF)For non-resident directors (who has no employment pass or Entrepass), there is a special rule for income derived from Singapore:
– Director fees, salaries, consultant fees and all other incomes are taxed at 20% (withholding tax).
* As your employer has withheld tax at source and filed IR37, you need not file a separate tax return for the director’s remuneration. However, if you have been issued a tax return, please declare all sources of income derived from Singapore including director’s remuneration and enter the tax withheld under the field “Tax deducted at source”. The non-resident director must file an income tax return if he has other sources of income.
If the director is the company shareholder, he/she may consider distribution of dividend instead of director fee to avoid the withholding tax. Distribution of dividends by Singapore Company is tax-free always regardless of where the shareholders are located.

Q5: I have received director’s fee from the Company, when should the income be reported?

A5: Director’s fees are assessed in the year that a director becomes entitled to the fees. This is regardless of when the payments are received by the director, and when the payments are accrued. Generally, there are 3 type of director’s fee
– Director fee received in accordance to the employment contract , he/she can recognize the fee in the same year
– For director’s fees that are approved in arrears (e.g. approved in 2013 after a director has rendered the requisite services for the accounting year ended 31 Dec 2012), the director is generally entitled to the director’s fees on the date the fees are voted and approved at the company’s Annual General Meeting or Extraordinary General Meeting (“AGM/ EGM”).
– For director’s fees that are approved in advance (e.g. approved in 2013 before a director has rendered the requisite services for the accounting year ending 31 Dec 2013), the director is not entitled to the director’s fees on date of AGM/ EGM. Instead, he is entitled to the director’s fees as and when he renders his services for the accounting year ending 31 Dec 2013.* If Section 45 withholding tax has been paid on director’s fees payable to a non-resident director, indicate ‘S45 applied’ against your employee’s designation on the Form IR8A.

Q6: I have received benefit-in-kind from my company (e.g. Company pays for my accommodations), will there be tax consequences for me?

A6: Yes, it is subjected to personal income tax. However many of these benefits are taxed at a reduced rate. You may refer to the detail at FAQ on Tax Treatment of Employee Remuneration.

Q7: Does Singapore tax on foreign source income received by the employees?

A7: Generally, foreign source income received by individual is not subjected to tax.However, it is subjected to tax if your income was accrued in or derived from Singapore, as a result of employment exercised in Singapore, even though your employer is a non resident/overseas company. Besides, the income is subjected to tax if it is received in Singapore through partnerships in Singapore.
In addition, your overseas employment income will be subjected to income tax if your overseas employment is incidental to your Singapore employment. That is, as part of your work here, you need to travel overseas.

Q8: Am I considered a tax resident in Singapore if I travel for work outside Singapore for more than half the year?

A8: Most likely you will be taxed as a resident in Singapore since your travel is incidental to your Singapore employment (assuming you are holding a valid work pass in Singapore). That is, as part of your work here, you need to travel overseas.Generally, an individual is considered a Singapore tax resident if in a calendar year:
– He is physically present for at least 183 days; or
– He exercises employment (other than as a company director) in Singapore for at least 183 days.
A company’s board director would generally not be considered a Singapore tax resident if he is physically present for less than 183 days. If the said director is also appointed as an executive director (i.e. one who is involved in the daily running of the business operations), he may be considered as a Singapore tax resident based on the facts and circumstances of the case.

Q9: Do I need to pay tax on my dividend income received from Singapore company?

A9: Generally, the following types of dividends are exempt from taxation in Singapore:
– Dividends from Singapore companies to its shareholders.
– Foreign dividends received in Singapore. This excludes foreign source income received through partnerships in Singapore.
– Income distributions from unit trusts and real estate investment trusts (REIT), that are authorized under Section 286 of the Securities and Futures Act (excludes distributions out of franked dividends).

Q10: Is tax clearance required from IRAS for a non-Singapore citizen employee who is assigned to an overseas subsidiary within the group?

A10: An employer is statutorily required to seek tax clearance at least one month before the non-Singapore citizen employee:- ceases his Singapore employment (including overseas posting); or
– leaves Singapore for any period exceeding three months.
Tax clearance is not required if the employee is away from Singapore for training or business purposes (excluding overseas posting) for three to six months.

Q11: Is payment of income made to an executive director subject to withholding tax?

A11: Withholding tax is applicable to payment of income made to a foreign individual in his capacity as a non-resident director . For payment of income made to the foreign individual in his capacity as an executive director , the withholding tax procedure is not applicable. Instead, the executive director must report his income in the income tax return. A tax bill will be issued to him for payment.