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Personal Income Tax
Singapore’s Personal Income Tax structure is one of the most friendly and competitive one in the region. Personal income tax is payable annually on a preceding year basis. All income generated by an individual in Singapore is subject to tax. Barring a few exception, income generated overseas are not subject to Tax.
Overseas income received in Singapore is not taxable. This does not apply to overseas income received in Singapore through partnerships in Singapore.
Residency of Tax Payer
Tax rates differ on the basis of the residency of the tax payer. For the purpose of taxation an individual is deemed to be a resident for a particular Year of Assessment (YA) if he/she is
- A Singaporean/Singapore Permanent Resident who has established permanent home in Singapore
- A foreigner who, has stayed/worked (but not in the capacity of company director) in Singapore for 183 days or more, in the year preceding the YA
All others are treated as Non-residents.
Tax Rate for Resident Individuals
| Chargeable Income in S$ | Income Tax Rate |
|---|---|
| < 20,000 | 0 |
| 20,000 - 30,000 | 3.5 % |
| 30,000 - 40,000 | 5.5 % |
| 40,000 - 80,000 | 8.5 % |
| 80,000 - 160,000 | 14 % |
| 160,000 - 320,000 | 17 % |
| Above 320,000 | 20 % |
Resident Tax rates follow a progressive pattern where the rate ranges from 0%-20%. The maximum tax rate, for income above S$320,000, has been reduced over time and has reached the present rate of 20% since YA 2007.
Chargeable income is derived after deducting from the total income, all expenses, donations, and personal reliefs. Personal tax relief, subject to conditions, includes support of dependents, course fees paid for attending academic and professional courses and premiums paid on life insurance policies. For YA 2009, a personal income tax rebate of 20%, up to a maximum of $2,000 has been granted.
Tax Rates for Non – Resident individuals
The income of Non-Resident individuals is taxed at a flat rate of 15% or at the resident tax rates whichever results in higher tax amount. Non residents are not entitled to tax relief. Director fees, consultant fees and all other incomes are taxed at 20%.
A Non-resident is exempted from tax if the income derived is from a short-term employment for 60 days or less. However this rule does not apply if you are a director of a company, a public entertainer or exercising a profession in Singapore. Professionals include foreign experts, foreign speakers, queen's counsels, consultants, trainers, coaches etc.
Rikvin offers
- Advisory services on personal tax planning double taxation and reliefs claimable.
- Personal tax computation & filing services (Form B1/Form B/ Form M/E-Filing)
- Preparation of tax form IR8A (statement of salary for employees)
- Withholding tax assistance for non-resident individuals
- Personal tax clearance for individuals leaving Singapore