Generally, you do not need to pay income tax if you satisfy the following conditions:
- You are earning gross income of $22,000 or less in a year;
- You do not derive or receive any income in Singapore.
Who needs to pay income tax in Singapore?
According to IRAS, “all individuals earning, deriving or receiving income in Singapore need to pay income tax every year, unless specifically exempted under the Income Tax Act or by an Administrative Concession”.
Generally, as an individual, you will be required to pay tax for any particular Year of Assessment (YA) under the following circumstances:
- You derive or receive income in Singapore.
- Income can be from a full-time job, as a sole proprietor, freelancer etc., or investments in Singapore.
- You are working outside Singapore, with your employment status under Singapore
- You are earning a gross income of $22,000 or more in a year; or/and
- You are a Singapore Citizen (SC) or Singapore Permanent Resident (SPR) who resides in Singapore except for temporary absences; or
- You are a Foreigner who has stayed / worked in Singapore (excludes director of a company) for 183 days or more in the year preceding the YA.
What is taxable and what isn’t?
Income can be taxable or non-taxable. Taxable income refers to income that is subject to taxation. Non-taxable income does not need to be taken into account during the taxation process. Below are some examples of taxable and non-taxable income.
| Taxable Income | Non-Taxable Income |
| Employment IncomeSalary BonusDirector’s FeeSelf-employment incomeRental Income | Windfalls, such as winnings from lotteryCapital gains from stocks and property investmentsPensionsCPF Life Payouts |
How much income tax do I need to pay?
Income tax is generally based on one’s income bracket. Singapore’s personal income tax rates for resident taxpayers are progressive. This means that the higher your income, the higher your tax – currently, the highest income tax rate stands at 22%. Below is a table of personal income tax rates based on income:
| Chargeable Income | Income Tax Rate | Gross Tax Payable |
|---|---|---|
| First $20,000 Next $10,000 | 0 2% | 0 $200 |
| First $30,000 Next $10,000 | – 3.5% | $200 $350 |
| First $40,000 Next $40,000 | – 7% | $550 $2,800 |
| First $80,000 Next $40,000 | – 11.5% | $3,350 $4,600 |
| First $120,000 Next $40,000 | – 15% | $7,950 $6,000 |
| First $160,000 Next $40,000 | – 18% | $13,950 $7,200 |
| First $200,000 Next $40,000 | – 19% | $21,150 $7,600 |
| First $240,000 Next $40,000 | – 19.5% | $28,750 $7,800 |
| First $280,000 Next $40,000 | – 20% | $36,550 $8,000 |
| First $320,000 In excess of $320,000 | – 22% | $44,550 |
This information is correct at time of publishing. For more updated information, visit the IRAS website.
Note: You can download an income tax calculator from the IRAS website to get a better idea of how much taxes you will need to pay.
Taxpayers can also expect tax reliefs. Typically a result of government programmes or policy, tax reliefs help to reduce the amount of taxes that you have to pay. In Singapore, some common tax reliefs or deductions you may qualify for include the following:
- Parent Relief
- Child Relief
- NSman Relief
- Course Fees Relief
- Life Insurance Relief
- Central Provident Fund (CPF) Relief
- Supplementary Retirement Scheme (SRS) Relief
- Deduction on donations
Do note that there is a limit to the amount of tax relief you can receive – for personal income tax in Singapore, the tax relief currently stands at $80,000.
When do I need to file for income tax?
Tax can be filed starting from the end of the first quarter of the year – you can do it electronically via the IRAS website from 1 March to 18 April every year. The assessment is for income earned in the preceding year – for example, in 2022, you would be filing for taxes for the income you received or derived in 2021. If you prefer paper filing, you will have to submit your completed tax form to the IRAS headquarters by 15 April.