Income tax in Singapore is a progressive system, with rates ranging from 0% to 24%. Resident individuals are subject to graduated tax rates, while non-resident individuals are subject to a flat rate of 24%.
Resident Individuals
Resident individuals are defined as individuals who have been in Singapore for at least 183 days in the year of assessment (YA). Resident individuals are entitled to various personal reliefs and deductions, which can reduce their taxable income.
The current personal reliefs and deductions for resident individuals are as follows:
Basic Personal Relief: $20,000
Marriage or Dependant Relief: $8,000 per spouse or dependent
Additional Married Person Relief (for married couples where one spouse earns more than the other): $10,000
Special Employment Pass (EP) or EntrePass (EntrePass) Relief: $7,500
Tax Saver's Scheme (TSS) Contribution Relief: $8,000
Medisave Contribution Relief: $8,000
Non-Resident Individuals
Non-resident individuals are defined as individuals who do not meet the criteria for resident status. Non-resident individuals are not entitled to any personal reliefs or deductions, and are subject to a flat rate of 24% on their worldwide income.
Individual Income Tax Rates
The individual income tax rates for resident individuals and non-resident individuals are as follows:
​Chargeable Income | ​Resident | ​Non-Resident |
|---|---|---|
​Up to $20,000 | ​0% | 24% |
​$20,001 to $40,000 | ​7% | ​24% |
​$40,001 to $60,000 | ​10% | ​24% |
​$60,001 to $100,000 | ​17% | ​24% |
$100,001 to $500,000 | 22% | ​22% |
​$500,001 to $1 million | 23% | 23% |
​Over $1 million | 24% | ​24% |
Employment Income
Employment income is the most common source of income for individuals in Singapore. Employment income is taxed at a flat rate of 7% for resident individuals and 15% for non-resident individuals. However, resident individuals may be able to claim additional tax reliefs on their employment income, such as the Additional Married Person Relief and the Special Employment Pass or EntrePass Relief.
Non-employment Income
Non-employment income includes income from sources such as rental income, investment income, and business profits. Non-employment income is taxed at the same graduated rates as employment income.
IRAS (Inland Revenue Authority of Singapore)
IRAS is the government agency responsible for administering income tax in Singapore. IRAS is responsible for collecting tax returns, verifying income information, and assessing tax liabilities. IRAS also provides taxpayer education and assistance.
E-Filing
Resident individuals are required to file their income tax returns online through the IRAS MyTax Portal. The MyTax Portal allows taxpayers to view their tax records, file tax returns, and make payments online.
Tax Filing Deadline
The tax filing deadline for resident individuals is 15 April of the following year. However, taxpayers may be eligible for an extension if they have a valid reason.
Late Filing Penalties
There are penalties for late filing of income tax returns. The penalties increase depending on the length of the delay.
How Bestar can Help
Bestar is a Singapore-based accounting and corporate services firm that can help you with your income tax filing. We have a team of experienced tax professionals who can assist you in understanding the Singapore tax system, maximizing your deductions, and ensuring that you are compliant with all tax laws and regulations.
Here are some of the specific ways Bestar can help you with your income tax in Singapore:
Prepare and file your income tax return
Review your income tax return to ensure accuracy
Advise you on tax planning strategies to minimize your tax liability
Represent you in case of an audit
Keep you up-to-date on changes in Singapore tax laws
Bestar can also help you with other tax-related matters, such as:
Corporate tax compliance
Goods and Services Tax (GST) registration and compliance
International tax planning
Tax audits and disputes
If you are looking for professional help with your income tax in Singapore, Bestar is a great option to consider. We have a proven track record of helping our clients save money and reduce their tax liability.
Here are some of the benefits of using Bestar for your income tax needs:
Expertise: Bestar has a team of experienced tax professionals who are up-to-date on the latest Singapore tax laws and regulations.
Convenience: Bestar can file your income tax return electronically, which saves you time and hassle.
Peace of mind: Bestar can take care of all of your income tax needs, so you can focus on other things.
Affordability: Bestar offers competitive rates for their services.
If you would like to learn more about how Bestar can help you with your income tax in Singapore, please contact us today for a free consultation.
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