Singapore Personal Income Taxes

Resident / Non-Resident

You may have heard the terms “resident” or “non-resident”. These are two of the basic Singapore taxation terminologies. A person is considered a tax resident if her or she is physically residing in Singapore or is employed in Singapore for 183 days or more in the calendar year.

Taxation for Individuals

Individuals should note that ALL income derived from Singapore is liable to tax. The personal/individual income is taxable at rates shown in the table below:

Chargeable Income ($)	Rate for Tax Residents	Rate for Non-Residents
<20,000	0%	15%
20,000 - 30,000	3.5%	15%
30,000 - 40,000	5.5%	15%
40,000 - 80,000	8.5%	15%
80,000 - 160,000	14%	15%
160,000 - 320,000	17%	15%
320,000+	20%	15%

* For residents, personal income is taxed at progressive rates.
* Non-residents are taxed at a flat rate of 15%.

Effective 1 January 2004, overseas income remitted by individuals in Singapore is not taxable.

Taxation for Foreigners

The above taxation rates is also applicable for foreign employees working in Singapore under any work visa, unless the foreign employee is on short-term employment not exceeding 60 days in a calendar year; or the foreign employee’s income is exempt from tax under the Avoidance of Double Taxation Agreement. Please note that foreigners on work visa are exempt from Central Provident Fund (CPF) contributions in Singapore.

Fringe Benefits

When it comes to fringe benefits provided by Singapore employers, it is the employee that is taxed. Most benefits are taxed on concessionary basis. Reducing an employee’s tax liability is possible through strategic configuration of their compensation.