Singapore to Impose New Individual Income Tax Rates in 2017

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Singapore’s Inland Revenue Authority has announced that, beginning in 2017, there will be new income tax rates for both resident and non-resident individuals in the country. Many of those affected will see their tax rates increase.

An individual will be considered a tax resident of Singapore for a particular Year of Assessment (YA) if they meet one of the following criteria:

  • Is a Singapore Citizen who normally resides in Singapore except for temporary absences; or
  • Is a Singapore Permanent Resident (SPR) who has established a permanent home in Singapore; or
  • Is a foreigner who has stayed/worked in Singapore (excludes director of a company) for 183 days or more in the previous year.

If the individual does not meet any of the above criteria, then they will be classified as a non-resident of Singapore for tax purposes.

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Singapore’s income tax is set at progressive rates, with higher earning individuals paying more tax. According to the IRAS, the new YA 2017 tax rates for residents will be as follows:

sgtax

In YA 2017, Singapore will also change the tax rates for non-resident individuals (except certain reduced final withholding tax rates) to 22 percent. The government has stated that their intention is to “maintain parity between the tax rates of non-resident individuals and the top marginal tax rate of resident individuals, which is also being raised by two percent at the same time.”

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In particular, the new rates will impact the following non-residents:

  • Non-resident directors will see their tax rates raised from 20 percent to 22 percent
  • Professionals will be subject to a rate of either 15 percent of gross income or 22 percent of net income (over the previous 20 percent)
  • Non-resident public entertainers are subject to a 10 percent rate

According to the IRAS, the new rates for non-residents will be as follows:

sg non res tax

In order to accurately assess your tax burden is it important to consult with a tax expert who is well versed in the intricacies of Southeast Asia tax requirements.


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ASEAN Briefing is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia and maintains offices throughout ASEAN, including in SingaporeHanoiHo Chi Minh City and Jakarta. Please contact us at asia@dezshira.com or visit our website at www.dezshira.com.

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