Individual Tax

The Singapore Personal Income Tax rate is one of the lowest in the world. In order to determine the Singapore income tax liability of an individual, you need to first determine the tax residency and amount of chargeable income and then apply the progressive tax rate to it.

Key points of Singapore’s income tax for individuals include:

  • Singapore follows a progressive tax rate starting at 0 percent and ending at 22 percent (above S$320,000).
  • There are no capital gains or inheritance taxes.
  • Individuals are taxed only on the income earned in Singapore. The income earned by individuals while working overseas is not subject to taxation (barring a few exceptions).
  • Tax rules differ based on the tax residency of the individual.
  • Income tax is assessed on a preceding-year basis.

Treatment of Tax on Overseas Income

In general, the income earned overseas by any Singaporean employee on or after January 1, 2004 is not taxable, as per the guidelines put forth by IRAS (Inland Revenue Authority of Singapore). However, there are certain exceptions wherein the overseas income becomes taxable

  • If the overseas employment of an individual is in relation to his/her Singapore employment.
  • If the income earned overseas is received through partnerships in Singapore.
  • If an individual is working overseas at the behest of the Singaporean government.

Due Date for Personal Income Tax Filing

The tax year of Singapore is from January 1 to December 31 and the due date for filing income tax returns is April 15 of each year. The assessment of income tax is done on the preceding year basis. The non-resident individuals of Singapore are taxed at a flat rate of 15% or according to the existing income tax rates, whichever amounts to higher income tax.

DSD Management provides you with income tax planning services, guidance for saving tax on your personal income and many more Singapore tax services. Furthermore, we also help you in the process of filing income tax returns with IRAS along with other related formalities.