Singapore enjoys one of the world's lowest personal income tax rates. From the Year of Assessment (YA) 2012, marginal personal income tax rates for income levels below S$120,000 have been cut, while income tax rates for income levels above S$120,000 have been increased marginally.
Taxes differ for residents and non-residents in Singapore. A resident tax payer is a resident who is a:
Personal tax is calculated progressively, starting at 0% and ending at 20% above S$320,000. A different margin rate of tax applies depending on the individual's income. Depending on your chargeable income, you stand to benefit from the personal income tax cuts. If you are a non-resident, your tax computation is different.
Personal income for Singapore non-residents
A non-resident tax payer is a foreigner who stayed or worked in Singapore for less than 183 days in the tax year. Employment income is exempt from tax if you are here practicing as a on short-term employment for 60 days or less in a year.
This exemption does not apply if you are a director of a company, a public entertainer or exercising a profession in Singapore. In Singapore for 61-182 days in a year, you will be taxed on all income earned in Singapore. You may claim expenses and donations.
However claiming personal reliefs is not permissible. Employment income is taxed at 15% or the progressive resident rate (see rate table above), whichever gives rise to a higher tax amount. Director fees, consultant fees and all other incomes are taxed at 20%.
Treatment of tax earned abroad
Overseas income received in Singapore on or after 1 Jan 2004 is not taxable. This includes overseas income paid into a Singapore bank account.
There are certain circumstances under which overseas income is taxable, so you need to check careful:
Taxes differ for residents and non-residents in Singapore. A resident tax payer is a resident who is a:
- Singaporean; or
- Singapore Permanent Resident and have established your permanent home in Singapore; or
- foreigner who has stayed or worked in Singapore for 183 days or more in the tax year
Personal tax is calculated progressively, starting at 0% and ending at 20% above S$320,000. A different margin rate of tax applies depending on the individual's income. Depending on your chargeable income, you stand to benefit from the personal income tax cuts. If you are a non-resident, your tax computation is different.
Personal income for Singapore non-residents
A non-resident tax payer is a foreigner who stayed or worked in Singapore for less than 183 days in the tax year. Employment income is exempt from tax if you are here practicing as a on short-term employment for 60 days or less in a year.
This exemption does not apply if you are a director of a company, a public entertainer or exercising a profession in Singapore. In Singapore for 61-182 days in a year, you will be taxed on all income earned in Singapore. You may claim expenses and donations.
However claiming personal reliefs is not permissible. Employment income is taxed at 15% or the progressive resident rate (see rate table above), whichever gives rise to a higher tax amount. Director fees, consultant fees and all other incomes are taxed at 20%.
Treatment of tax earned abroad
Overseas income received in Singapore on or after 1 Jan 2004 is not taxable. This includes overseas income paid into a Singapore bank account.
There are certain circumstances under which overseas income is taxable, so you need to check careful:
- It is received in Singapore through partnerships in Singapore.
- Your overseas employment is incidental to your Singapore employment. That is, as part of your work here, you need to travel overseas.
- You are employed outside Singapore on behalf of Government of Singapore. You need to declare the qualified taxable overseas income under 'employment income' and 'other income' (whichever applicable) in your tax form.
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