Singapore personal income tax: A beginner's guide (with Examples)

Imagine transforming your tax filing experience from confusing to confident. That's what understanding Singapore's personal income tax system can do for you.

By learning who needs to file taxes, how to calculate your taxable income, and following Singapore's tax rules correctly, you can avoid penalties and possibly even save money.

This is particularly important for new residents and first-time taxpayers who face this complex system with little guidance.

In this guide, you'll learn everything you need to know about Singapore's personal income tax system. 

All without having to hire an expensive tax consultant.

First, let’s start with the foundation.

1. Key features of Singapore's personal income tax

• Singapore uses a progressive tax rate. The more you earn, the higher your tax rate. It ranges from 0% to 24% for income up to 1,000,000 SGD or more.
• Your tax status depends on your residency. You are either a tax resident or a non-resident.
• There are tax relief, tax rebates, and tax deductions you can use to optimize your tax.
• You pay tax on income earned in Singapore. There are rules for foreign-sourced income that are tax-exempt and not.
• You must file your tax return by April 15 each year, based on your income from the previous year.

2. What is tax residency status?

You need to understand tax residency before learning about tax rates and calculations. 

Your residency status determines how Singapore taxes you.

Singapore determines your tax residency status by your physical presence or employment circumstances. 

Even foreigners can qualify as tax residents if they meet certain criteria. You are either a tax resident or a tax non-resident.

Your residency status matters significantly because residents and non-residents pay different tax rates, as we'll explain in the next section

Important note

When determining tax residency status, you need to count all days worked in Singapore, including holidays and weekends, and consider temporary absences or work trips.

3. Singapore personal tax rates for tax residents and tax non-residents

Singapore uses a progressive tax system for residents and a flat rate system for non-residents. 

You need to know which category applies to you.

3.1. How to determine your personal chargeable income?

You need to figure out your chargeable income to see how much tax you have to pay. The chargeable income is calculated as follows.

3.2. Singapore's progressive tax rate for tax residents

Singapore uses a progressive tax rate, from 0% to 24%. It gradually increases as your income rises.

• You must file a personal tax return if you earn 20,000 SGD or more per year.
• You do not need to pay tax if you earn less than 20,000 SGD. You need to file a tax return if IRAS sends you a notification to do so.

For Year of Assessment 2025 (income earned in 2024) and beyond, you'll pay:

Let's look at a simple example. If you earned $80,000 SGD in 2024, you would pay

• First $20,000: $0
• Next $10,000: $200 (2% of $10,000)
• Next $10,000: $350 (3.5% of $10,000)
• Next $40,000: $2,800 (7% of $40,000) 

Summing these up, the total tax payable will be 3,350 SGD. 

(20,000 x 0%) + (10,000 x 2%) + (10,000 x 3,5%)+ (40,000*7%) = 3,350 SGD.

3.3. Singapore personal tax rate for tax non-resident

Non-residents pay taxes at different rates:

• Employment income: Flat 15% or the progressive resident tax rates (whichever results in a higher tax amount)
• Director's fees, consultation fees, and other income: Flat 15% or flat 24%

Cases such as directors, experts, and performers will be taxed as follows:

Let’s take these 2 examples below

Example 1:

If you're a non-resident  professional who earned $50,000 in employment income in 2024, you would pay: $50,000 × 15% = $7,500

Example 2:

For example: Mr. Lam is a director for a company in Singapore. He has an Employment Pass and has worked more than 60 days in Singapore), receiving a salary of 80,000 SGD in 2024. Mr. Lam's personal income tax is calculated as follows :

Compare this to the $3,350 SGD that a tax resident would pay on the same income. 80,000 SGD. Your tax residency status makes a big difference in your tax bill.

4. What income is taxable and non-taxable in Singapore?

You need to understand what income Singapore taxes to plan accurately and comply with tax laws.

This list includes the most common types of income. Each income can be taxable and non-taxable, depending on the scenario.

4.1.

To be extra specific, we offer you a list of 4 common types of income with a dedicated example for each to help you better understand.

5. Tax relief and deductions for tax residents in Singapore

Tax residents in Singapore can access numerous tax reliefs and deductions that significantly reduce their taxable income.

We have a comprehensive article that explains in detail these tax reliefs and when you qualify. You can read it here: How to maximize Singapore tax reliefs (Best strategies)

Please note that Singapore limits the total amount of all personal income tax reliefs you can claim to $80,000 per Year of Assessment. 

This personal income tax relief cap applies regardless of how many reliefs you qualify for.

In summary, Singapore tax residents have access to these tax reliefs

1. Personal reliefs (Earned income relief, CPF relief)
2. Family-related reliefs (Spouse relief, child relief, parent/grandparent relief)
3. Education reliefs (Course fees relief, NS-related relief)
4. Donation and charitable giving

6. Special considerations for foreign individuals (Tax non-residents)

Singapore offers several tax schemes and considerations specifically designed for foreigners working in the country.

6.1. Not Ordinarily Resident (NOR) Scheme

The NOR scheme provides tax benefits to qualifying individuals for five consecutive Years of Assessment. To qualify, you must:

• Be a tax resident for the Year of Assessment under consideration
• Have been a non-resident for the three consecutive Years of Assessment immediately before that

Under the NOR scheme, you may enjoy:

• Time apportionment of employment income (only taxes the portion of income related to Singapore work days)
• Tax exemption on employers' contributions to overseas pension funds or social security schemes

For example, if you're on the NOR scheme and spend 60% of your time working in Singapore and 40% overseas, Singapore will only tax 60% of your employment income.

6.2. Exemptions under Avoidance of Double Taxation Agreements (DTAs)

Juridical double taxation happens when the same income is taxed twice - once in the jurisdiction where the income originates and again in the jurisdiction where it is received.

Only tax residents of Singapore and its DTA partners can benefit from a double taxation agreement.

• Tax residents of DTA Partners

If you are a tax resident of a country that has a DTA with Singapore, you can avoid being taxed twice on the same income in Singapore.

• Exemption on short-term Singapore employment income

This can happen if you are working for a foreign employer.

If you are eligible, you can submit the Claim for DTA Exemption and Certificate of Residence to IRAS.

• Tax residents of Singapore

If you earn income from another jurisdiction, you may be taxed there. However, you can claim DTA benefits to enjoy a reduced tax rate or tax exemption in that jurisdiction. 

To earn the tax exemption, you need to submit the Certificate of Residency (COR) to the foreign tax authority to prove your Singapore tax residency.

7. Area representative status

Foreign employees who represent overseas companies in Singapore might qualify for area representative status. 

If approved, Singapore will only tax the income attributable to work done in Singapore.

For example, if you work as a regional manager overseeing Southeast Asia and spend 50% of your time on work related to Singapore, Singapore will only tax 50% of your income.

7.1. Tax exemption for overseas income

As mentioned earlier, Singapore generally doesn't tax foreign-sourced income when remitted to Singapore. This benefits expatriates with overseas investments or rental properties.

For example, if you work in Singapore but still receive rental income from a property in your home country, Singapore generally won't tax this income. 

Please note that this property can be taxed in your home country. You just don’t have to pay taxes to Singapore IRAS.

8. How to file personal tax return in Singapore (Easy step-by-step guide)

Individuals in Singapore, whether residents or non-residents, who have an annual income below 20,000 SGD are not mandated to pay taxes but are required to file a tax return if requested by the IRAS tax authority.

Even if their income is zero, it's necessary to declare zero income tax on the tax form and submit it to the IRAS agency.

All eligible taxpayers must fulfill their annual tax filing obligations. The annual deadline for filing taxes is typically:

• April 15 for hard copy submissions or; 
• April 18 for electronic submissions.

Tax returns can be filed online or by mail, and the IRAS will provide the appropriate form based on the individual's residential status. Common forms include:

• Completion of Form B1 (income tax return for tax resident individuals) for paying personal income tax in Singapore; 
• Filling out Form M (income tax return for individuals not residing in Singapore).

 Completing Form B (income tax return for self-employed individuals or private business owners - Sole Proprietorship).

Be mindful that you may face penalties for not declaring Singapore personal income tax, not paying tax, or paying late.

Therefore, seeking assistance from a reputable, professional, and dedicated tax consulting service such as Global Link Asia Consulting can effectively support individuals or businesses in accurately and appropriately calculating and declaring taxes.

9. How can we help you deal with Singapore's personal tax?

With over 10 years of experience helping foreign entrepreneurs and business owners deal with Singapore personal tax, we can help you with

• Singapore personal tax consulting: We offer expert guidance and support focusing on personal income tax regulations, including rates, exemptions, and deductions.
• Accurate document preparation: We assist in preparing essential personal tax documents, ensuring accuracy and completeness in tax declarations.
• Timely tax filing: Our team facilitates the process of filing personal taxes with the Singapore tax authorities, IRAS.

In addition, Global Link Asia Consulting, as your trusted one-stop corporate service provider, helping hundreds of business owners start their businesses overseas and manage their companies with success, can help you

• Register a company in Singapore;
• Open a corporate bank account in Singapore with a 99% success rate;
• Choose the right company types for tax optimization in Singapore;
• Apply for Singapore business licenses;
• Get an affordable, professional registered office address for business;
• Support to open, authenticate, and manage Stripe Paypal Business in Singapore, Hong Kong, and the U.S;
• Support for Singapore company tax, Singapore personal tax.
• Handle all your tax accounting needs, timely annual filings, auditing, and more.

10. FAQs about Singapore personal tax income

We offer a comprehensive range of accounting and tax services for Singaporean companies. Our services include:

• Tax Consulting including corporate income tax, GST tax, contractor tax, and more.
• Monthly/Annual Tax Accounting services in accordance with Singapore accounting standards (SFRS).
• QuickBooks Consulting and Licensing.
• Corporate Income Tax Return Preparation
• GST Tax Return Preparation.

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