Taxes in Singapore

Written by Lais Cattassini Moderated by Oleksandra Dosii

Lais Cattassini

Lais is a Brazilian journalist and copywriter with over 17 years of experience, writing about things she knows really well (travelling, cinema, social media trends) and things she loves learning about.

Oleksandra Dosii

Oleksandra is a dedicated marketer with a passion for growing HR-tech products. She believes content marketing is about delivering high-quality content that provides value—not just generating leads. Since 2016, Oleksandra has been involved in tech talent relocation.

Last update: September 14, 2024

Next update: Scheduled for February 1, 2025

Singapore's income tax system is designed to be straightforward and business-friendly, focusing on low personal and corporate tax rates. This is part of Singapore's broader strategy to maintain its appeal as a global business hub and attract international talent and investment.

Individuals who stay or work in Singapore for at least 183 days in a calendar year are considered tax residents, benefit from lower tax rates, and are eligible for various reliefs. Non-residents are taxed at a flat rate of 15% on employment income or at the resident rates on income derived from sources other than employment.

The Inland Revenue Authority of Singapore (IRAS) administers and enforces tax laws. It handles tax collection, processing of tax returns, and addressing tax-related queries and disputes.

What is the income tax in Singapore?

As mentioned before, individuals who reside or work in Singapore for at least 183 days in a calendar year are considered tax residents. Residents benefit from lower tax rates and various reliefs. Those who do not meet the residency criteria are taxed at a flat rate of 15% on their employment income or at the resident rates on other types of income, such as director’s fees or consultancy fees.

The income tax in Singapore ranges from 2% to 24%, with a progressive tax rate system for residents, where the rate increases with higher income levels:

Companies are taxed at a flat rate of 17% on their chargeable income.

Social Security contributions

In Singapore, social security contributions are managed through the Central Provident Fund (CPF), which is a mandatory savings scheme designed to support Singaporeans and permanent residents in their retirement, healthcare, and housing needs.

Both employees and employers make mandatory contributions to the CPF based on the employee’s wages. People who are self-employed make contributions based on their income, but they are responsible for managing their own payments.

Contribution rates vary based on the employee’s wages and age group. The rates are divided into employer contributions and employee contributions, which are deducted from the employee’s salary:

Overall, the CPF system provides financial support for retirement, healthcare, and housing needs while promoting savings and financial security among its residents.

Online tax calculator for taxes in Singapore

The Singapore IRAS provides tools to calculate how much you will potentially pay in taxes for the upcoming year.

You can also calculate your net income here.

Annual tax returns in Singapore

In Singapore, the process for filing tax returns is streamlined and designed to be efficient, particularly for individuals and businesses.

Individuals can file their tax returns using the Inland Revenue Authority of Singapore (IRAS) e-Filing system. This can be accessed via the myTax Portal. The tax year is the same as the calendar year, running from January 1 to December 31. The deadline for filing tax returns for the year of assessment (i.e., the previous calendar year) is April 15.

Taxpayers must report their total income, including salary, bonuses, rental income, and other sources of income. You can also claim deductions and reliefs to reduce your taxable income, such as contributions to the Central Provident Fund (CPF), charitable donations, and personal reliefs.

After submitting the tax return, IRAS will issue a Notice of Assessment (NOA), which details the amount of tax payable. Taxpayers have the right to review the NOA and file an objection if they disagree with the assessment. This must be done within 30 days of receiving the NOA.

How to pay less taxes

There are several ways individuals and businesses can reduce their tax liabilities through tax credits, allowances, and deductions.

Central Provident Fund (CPF) contributions relief

CPF is Singapore’s mandatory savings scheme for employees, aimed at retirement, healthcare, and housing. Contributions to CPF reduce taxable income.

Employees can claim tax relief for their CPF contributions.

Supplementary Retirement Scheme (SRS) relief

The Supplementary Retirement Scheme (SRS) is a voluntary savings scheme designed to complement the CPF and encourage long-term savings for retirement. Contributions are eligible for full tax relief.

Life insurance relief

Taxpayers can claim relief for life insurance premiums paid during the assessment year, provided certain conditions are met.

Course fees relief

Relief for course fees is available to taxpayers who have incurred expenses for attending courses to upgrade their skills.

The course must be relevant to the taxpayer’s current employment or a new job that the taxpayer is considering, and the relief applies only to course fees and excludes expenses like materials, transport, or accommodation.

The amount of Course Fees Relief you can claim is the actual course fees incurred, up to a maximum of S$5,500 per year, regardless of how many courses, seminars, or conferences you attend.

Earned income relief

Earned Income Relief is granted to individuals who earn income through employment, trade, business, or professional practice.

It is available to all taxpayers who have earned income in the assessment year. However, the relief is higher for older workers to encourage continued employment.

The specific relief amounts are as follows:

• Up to S$1,000 if you are below 55 years old
• Up to S$6,000 if you are aged 55 to 59
• Up to S$8,000 if you are 60 and above

Parenthood tax rebate (PTR)

The Parenthood Tax Rebate (PTR) is a one-off rebate granted to encourage families to have children. It can be shared between spouses and offset against income tax payable.

The official IRAS website offers a PTR Eligibility Tool that parents can use to check if they qualify for the rebate. Generally, to qualify, your children must be Singaporean citizens either at birth or within 12 months thereafter.

Qualifying Child Relief (QCR) and Handicapped Child relief (HCR)

QCR and HCR are tax reliefs provided to parents for supporting their children. HCR is granted for children with disabilities.

Working Mother's Child relief (WMCR)

WMCR is designed to encourage married women to remain in the workforce after having children.

It is only available to working mothers, and the relief is granted based on the number of children who are Singapore citizens.

NSman relief (National Service)

It is a relief provided to Singaporean men who have performed National Service (NS), with additional relief for those who continue to serve as reservists.

Charitable donations relief

Taxpayers can claim relief for donations made to approved charities in Singapore.

Talk to a tax advisor

A tax advisor or accountant will help you ensure that you are paying taxes correctly and collecting benefits, allowances, and deductions. For expats, services like these can be even more beneficial, as they help foreigners overcome language barriers and the complicated tax regulations of a new country.

Other taxes in Singapore

In addition to income tax, residents of Singapore may be subject to various other taxes depending on their activities and financial decisions.

Goods and Services tax (GST)

GST is a value-added tax levied on the consumption of goods and services, including imports. The GST rate in Singapore is 9%. Consumers pay GST on most goods and services they purchase, while businesses collect and remit it to the Inland Revenue Authority of Singapore (IRAS).

Property tax

A tax is imposed on owners of properties, both residential and non-residential, based on the annual value of the property. For more details, visit the IRAS Property Tax page.

Motor vehicle taxes

These taxes apply to residents who own or import vehicles in Singapore. Vehicle owners must pay for a Certificate of Entitlement (COE), additional registration fee, and road tax.

Tax treaties with Singapore

Singapore has double taxation agreements with over 100 other countries. Here, you can see what countries are covered under these treaties.