Singapore Personal Income Taxes
Resident / Non-Resident
You may have heard the terms “resident” or “non-resident”. These are two of the basic 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. The aggregate of 183 days stay here need not be in one continous period.
Taxation for Individuals
Individuals should note that ALL income derived from Singapore is liable to tax. The singapore personal income taxes rates are shown in the table below:
|Chargeable Income ($)||Rate for Tax Residents||Rate for Non-Residents|
|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%|
* For residents, personal income is taxed at progressive rates.
* Non-residents are taxed at a flat rate of 15%.
Effective 1 January 2004, overseas earned income remitted by individuals to Singapore is not taxable.
Taxation for Foreigners
The above taxation rates are 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.
If you hold a work visa, your personal income taxes will be similar to a natural born citizen. As the tax rates on personal income are low compared to other countries, most will pay little or no taxes. Please note also that all benefits in kind derived through employment not monetary in nature are also taxable. Examples will include any housing allowances paid for by the company or accomodations provided for by a company. Most benefits are taxed on concessionary basis. Reducing an employee’s tax liability is possible through strategic configuration of their compensation.
It is always prudent to consult and seek advice if you are unsure of your personal income taxes. Sandhurst provides expert advice in this regard and will also assist in the submission of your personal income taxes.