Singapore’s tax rates are one of the lowest among developed countries – an attractive feature for foreigners working here.
The tax system is well-regulated and administered by the Inland Revenue Authority of Singapore (IRAS).
The amount of personal income tax payable depends on whether you are a tax resident or non-resident, and the income you earn.
Different tax rates apply for tax residents and non-residents. You will be treated as a tax resident for a particular Year of Assessment (YA) if you are a:
- Singapore Permanent Resident (SPR) if you have established your permanent home in Singapore; or
- Foreigner who stayed/worked in Singapore for at least 183 days or more in the previous year (excludes director of a company).
All others are considered non-residents for a particular YA for Singapore tax purposes.
Tax residents are taxed on any income earned in Singapore. Overseas income that is tied to employment in Singapore and brought into the country is taxable. Otherwise, your global sources of income are not taxed. Singapore has a progressive tax structure. After deducting personal relief, personal income tax rates are between 0-20%. To find out more about Singapore’s tax rates, visit the IRAS website.
Tax residents are entitled to personal reliefs, for matters such as children, professional course fees, insurance premiums and compulsory contributions to the Central Provident Fund (CPF). Here is more information about personal reliefs.
Non-residents are exempted from paying income tax if they have been employed for 60 days or less in a calendar year, unless they are directors, public entertainers, or practising a profession in Singapore. Non-residents are taxed only on income earned in Singapore at a flat rate of 15% or the resident rates, whichever is higher, and may not claim for personal reliefs.
For more information, visit the IRAS website.
Avoidance of Double Taxation
Singapore has signed agreements with other countries to relieve double taxation of income earned by an individual who is living in another country. If you are a tax resident of one of these countries, you may be protected from being taxed twice. For more information, visit the IRAS website.