If you are a foreigner working in Singapore or are looking to move to Singapore to work, here is a guide to the personal income taxes that you will need to pay in Singapore.
Income taxes in Singapore is calculated on a preceding year basis. The Year of Assessment refers to the income earned in the previous calendar year. For example, Year of Assessment 2021 (YA2021) refers to the period 1st January 2020 to 31st December 2020.
As a starting point, the amount of income tax you will need to pay will depend on
- Your tax residency status (whether you are a tax resident or non-resident); and
- How much you earn in Singapore
Your tax residency status
You are a tax resident for a particular Year of Assessment if you
a) Stayed or worked in Singapore
– for at least 183 days in the previous calendar year; or
– continuously for 3 consecutive years; or
b) Worked in Singapore for a continuous period straddling 2 calendar years and your total period of stay is at least 183 days. This applies to foreign employees who entered Singapore but exclude directors of a company, public entertainers or professionals.
How much you earn in Singapore
If you are a tax resident of Singapore, you will be taxed the local resident tax rates.
Resident tax rates:
| Chargeable Income | Rate (%) | Gross Tax Payable ($) |
| On the first 20,000
On the next 10,000 |
0
2 |
0
200 |
| On the first 30,000
On the next 10,000 |
–
3.50 |
200
350 |
| On the first 40,000
On the next 40,000 |
–
7 |
550
2,800 |
| On the first 80,000
On the next 40,000 |
–
11.5 |
3,350
4,600 |
| On the first 120,000
On the next 40,000 |
–
15 |
7,950
6,000 |
| On the first 160,000
On the next 40,000 |
–
18 |
13,950
7,200 |
| On the first 200,000
On the next 40,000 |
–
19 |
21,150
7,600 |
| On the first 240,000
On the next 40,000 |
–
19.5 |
28,750
7,800 |
| On the first 280,000
On the next 40,000 |
–
20 |
36,550
8,000 |
| On the first 320,000
In excess of 320,000 |
–
22 |
44,550 |
Tax treatment of non-residents:
As a non-resident:
- You will be taxed on all income earned in Singapore;
- You may claim deductions on expenses and donations to save tax. However, you are not eligible to claim personal reliefs;
- Your employment income is taxed at the higher of:
- flat rate of 15%; or
- the progressive resident tax rate.
- Director’s fees, consultant’s fees and all other income are generally taxed at 22%.
If you have any company-related queries, you may email us at [email protected]. When in doubt, seek legal advice or consult an experienced licensed Employment Agency with the Ministry of Manpower.
Yours Sincerely,
The editorial team at Singapore Employment Agency
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Little Big Employment Agency Pte Ltd is a licensed Employment Agency with the Ministry of Manpower with license number 19C9790.