A Guide to Personal Income Tax in Singapore

Posted by Written by Ayman Falak Medina Reading Time: 3 minutes

Personal income tax in Singapore is based on a progressive tax system, with taxes ranging from 0 to 22.5 percent for 2023. For foreigners in Singapore, their tax liability is dependent on their tax residency status.

Foreigners are considered tax residents if they:

  • Stay or work in Singapore for more than 183 days in a calendar year;
  • A Singapore permanent resident who has a permanent home in Singapore; or
  • Continuously work in Singapore for three consecutive years.

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Understanding the personal income tax system in Singapore is crucial for both residents and foreigners. By adhering to the tax regulations and fulfilling tax obligations, individuals can ensure compliance and avoid potential penalties imposed by the Inland Revenue Authority of Singapore (IRAS).

 

 

Income tax rates in Singapore

Singapore levies a progressive individual income tax rate on tax residents, with the headline personal income tax currently at 22 percent. The progressive tax rates on chargeable income for tax residents are as follows:

From 2024 onward, Singapore will increase the headline personal income tax rate to 24 percent. Chargeable income between S$500,000 (approx, US$370,000) to S$1 million will be taxed at 23 percent, while chargeable income in excess of S$1 million (approx, US$741,000) will be taxed at 24 percent.

IIT Tax Rates from 2017 to 2023

Chargeable income

Tax rate (%)

Gross taxable

First S$20,000 (US$14,830)

0

S$0

Next S$10,000 (US$7,400)

2

S$200 (US$148)

First S$30,000 (US$22,247)

–

S$200 (US$148)

Next S$10,000 (US$7,400)

3.5

 S$350 (US$259)

First S$40,000 (US$29,508)

–

S$550 (US$407)

Next S$40,000 (US$29,508)

7

S$2,800 (US$2,076)

First S$80,000 (US$59,016)

–

S$3,350 (US$2,484)

Next S$40,000 (US$29,508)

11.5

S$4,600 (US$3,411)

First S$120,000 (US$88,524)

–

S$7,950 (US$5,895)

Next S$40,000 (US$29,508)

15

S$6,000 (US$4,426)

First S$160,000 (US$119,076)

–

S$13,950 (US$10,258)

Next S$40,000 (US$29,508)

18

S$7,200 (US$5,311)

First S$200,000 (US$118,033)

–

S$21,150 (US$15,602)

Next S$40,000 (US$29,508)

19

S$7,600 (US$5,607)

First S$240,000 (US$177,049)

–

S$28,750 (US$21,209)

Next S$40,000 (US$29,508)

19.5

S$7,800 (US$5,754)

First S$280,000 (US$206,557)

–

S$36,550 (US$26,963)

Next S$40,000 (US$29,508)

20

S$8,000 (US$5,902)

First S$320,000 (US$236,065)

–

S$44,500 (US$32828)

Excess S$320,000 (US$236,065)

22

 

 

IIT Tax Rates from 2024 Onward

Chargeable income

Tax rate (%)

Gross taxable

First $20,000 (US$14,754)

0

S$0

Next $10,000 (US$7,400)

2

S$200 (US$147.5)

First $30,000 (US$22,131)

–

S$200 (US$147.5)

Next $10,000 (US$7,400)

3.50

S$350 (US$258)

First $40,000 (US$29,508)

–

S$550 (US$405.7)

Next $40,000 (US$29,508)

7

S$2,800 (US$2,065)

First $80,000 (US$59,016)

–

S$3,350 (US$2,471)

Next $40,000 (US$29,508)

11.5

S$4,600 (US$3,393)

First $120,000 (US$88,524)

–

S$7,950 (US$5,864)

Next $40,000 (US$29,508)

15

S$6,000 (US$4,426)

First $160,000 (US$118,032)

–

S$13,950 (US$10,291)

Next $40,000 (US$29,508)

18

S$7,200 (US$5,311)

First $200,000 (US$147,541)

–

S$21,150 (US$15,602)

Next $40,000 (US$29,508)

19

S$7,600 (US$5,607)

First $240,000 (US$177,049)

–

S$28,750 (US$21,209)

Next $40,000 (US$29,508)

19.5

S$7,800 (US$5,754)

First $280,000 (US$206,557)

–

S$36,550 (US$26,963)

Next $40,000 (US$29,508)

20

S$8,000 (US$5902)

First $320,000 (US$236,065)

–

S$44,550 (US$32,865)

Next $180,000 (US$132787)

22

S$39,600 (US$29,213)

First $500,000 (US$368,852)

–

S$84,150 (US$62,078)

Next $500,000 (US$368,852)

23

S$115,000 (US$84,836)

First $1,000,000 (US$737,705)

–

S$199,150 (US$14,6914)

In excess of $1,000,000 (US$737,705)

24

 

Non-tax residents are taxed at a flat rate of 15 percent.

Filing personal income tax returns

Each taxpayer in Singapore is obligated to make an annual return of income on a yearly basis. The tax return must be submitted by April 15. This can be done online or via mail.

The appropriate form to be filled out depends on the individual’s tax residency status:

  • Tax resident individuals need to file Form B1.
  • Self-employed individuals need to file Form B.
  • Non-resident individuals need to file Form M.

Singapore’s IRAS can take legal action against individuals who do not file their tax returns or for non-payment of taxes.

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Taxes on employer benefits

Benefits received from employers are taxable unless they are specifically exempt from income tax under an existing incentive.

Examples of benefits that are taxable include:

  1. Overtime payments;
  2. The motor vehicle provided by the employer;
  3. Subscription, entrance fees, memberships;
  4. Share options;
  5. Residential accommodation;
  6. Food and clothing;
  7. Allowances; and
  8. Medical reimbursements for dependents.

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