Singapore is widely regarded as a leading example of a nation that consistently lowers corporate income tax rates and introduces various tax incentives to attract and retain global investments. With its straightforward, efficient, and appealing tax system, Lion City has become a favored destination for investors seeking to establish their operations. In this guide, we will provide a comprehensive overview of:
- Key features of Singapore tax’s system
- Income Taxes as Applied to Individuals
- Introducing RBA online Singapore tax calculator
Key Features of Singapore Tax System
Entrepreneurs and companies established in Singapore enjoy numerous advantages that are often not accessible in other countries. These benefits include:
- Single-tier tax: This system taxes corporate profits exclusively at the corporate level, while dividends distributed to shareholders remain tax-free
- Zero tax: Singapore imposes no taxes on capital gains, dividends, or income derived from oversea sources. Furthermore, assets obtained through inheritance or as gifts are exempt from taxation.
- Low tax rates: Both corporate and personal tax rates are kept low, complemented by various tax incentives aimed at reducing the effective tax burden.
- No double tax: Through an extensive network of Double Taxation Avoidance treaties, individuals and companies with income and assets abroad are only taxed once, eliminating the possibility of double taxation.
Types of Taxes in Singapore
Singapore’s taxation framework includes a range of tax categories aimed at upholding fiscal stability while fostering economic development. Here are the types of taxes in Singapore:
- Income Tax: chargeable on the income of individuals and companies.
- Goods & Services Tax (GST): paid when money is spent on goods or services, including imports.
- Property Tax: imposed on owners of properties based on the expected rental values of the properties.
- Stamp Duty: imposed on commercial and legal documents relating to stock & shares and immovable property.
- Gambling Duties: these are duties on betting, lotteries, sweepstakes, and gaming machines in any non-casino premises.
- Casino Tax: levied on the casinos’ gross gaming revenue.
- Estate Duty (Removed for deaths occurring on or after 15 Feb 2008): levied on the value of a deceased’s net assets in excess of a threshold amount.
Other taxes imposed by the government and administered by other government agencies include:
- Customs, Excise, and Carbon Taxes
- Motor Vehicle Taxes
- Vehicle Quota Premiums
- Fees and Charges (Excluding Vehicle Quota Premiums)
Income Taxes as Applied to Individuals
Personal income tax rate in Singapore is one of the lowest in the world. The personal tax system in Singapore is progressive, which means that the personal tax rate Singapore increases with an increase in the individual’s income.
For foreigners in Singapore, their tax liability is dependent on their tax residency status.
Foreigners are considered tax residences if they:
- Stay or work in Singapore for more than 183 days in a calendar year;
- A Singapore permanent resident who has a permanent home in Singapore; or,
- Continuously work in Singapore for three consecutive years.
Individual Tax Rates for Residents 2023:
| Chargeable Income (S$) | Rate (%) | Gross Tax Payable ($) |
| First 20,000 Next 10,000 | 0 2 | 0 200 |
| First 30,000 Next 10,000 | – 3.5 | 200 350 |
| First 40,000 Next 40,000 | – 7 | 550 2,800 |
| First 80,000 Next 40,000 | – 11.5 | 3,350 4,600 |
| First 20,000 Next 40,000 | – 15 | 7,950 6,000 |
| First 160,000 Next 40,000 | – 18 | 13,950 7,200 |
| First 200,000 Next 40,000 | – 19 | 21,150 7,600 |
| First 240,000 Next 40,000 | – 19.5 | 28,750 7,800 |
| First 280,000 Next 40,000 | – 20 | 36,550 8,000 |
| First 320,000 Excess 320,000 | – 22 | 44,550 |
The information provided in the table originates from IRAS
Note: Starting from 2024, Singapore will raise the headline personal income tax rate to 24%. Individuals earning between S$500,000 and S$1 million will be subject to a tax rate of 23%, while earnings surpassing S$1 million will be taxed at 24%. The specific tax rates from 2024 onward are as follows:
| Chargeable Income (S$) | Rate (%) | Gross Tax Payable (S$) |
| First 20,000 Next 10,000 | 0 2 | 0 200 |
| First 30,000 Next 10,000 | – 3.5 | 200 350 |
| First 40,000 Next 40,000 | – 7 | 550 2,800 |
| First 80,000 Next 40,000 | – 11.5 | 3,350 4,600 |
| First 120,000 Next 40,000 | – 15 | 7,950 6,000 |
| First 160,000 Next 40,000 | – 18 | 13,950 7,200 |
| First 200,000 Next 40,000 | – 19 | 21,150 7,600 |
| First 240,000 Next 40,000 | – 19.5 | 28,750 7,800 |
| First 280,000 Next 40,000 | – 20 | 36,550 8,000 |
| First 320,000 Next 180,000 | – 22 | 44,550 39,600 |
| First 500,000 Next 500,000 | – 23 | 84,150 115,000 |
| First 1,000,000 Exceed 1,000,000 | – 24 | 199,150 |
The information provided in the table originates from IRAS
Non-Resident Tax Rates
Even if you’re considered a non-resident in Singapore, you’re still required to pay taxes, although the rates and rules are different:
- You will only be taxed on the income you earn within Singapore
- You won’t receive any tax reliefs
The Inland Revenue Authority of Singapore (IRAS) will decide on the taxation approach for your salary by choosing between two options: either a flat rate of 15% or the resident rates mentioned earlier, selecting the option that leads to higher tax payments.
Looking for Assistance with your Singapore Tax Calculations?
We hope that this guide streamlines the Singapore tax system and assists you in understanding potential tax obligations in the region. For an estimation of your Singapore taxes and a comparison with taxes in your home country, utilize the RBA online Singapore Tax Calculator.
If you require additional tax assistance or information for your Singapore company, please do not hesitate to contact us. Startups have to manage numerous company accounts and tax filings over the years, and our professionals are highly skilled in taxation and auditing. Reach out to RBA today for expert support!
