Singapore is a great place for expats with high salaries and a great quality of living. Singapore regularly tops the world’s best health care, airline, airport, education system, ease of doing business, and low crime rate. It is no wonder that in a survey by Inter nations on the best place for expats Singapore comes in the top 10, but I want to look at it’s tax requirements.
However, what should you know about Singapore income taxes? Personal taxation has to be filled out IRAS by the 15th of April. However, the tax that you have to pay does depend on the tax status in Singapore if you are classified as a resident or non-resident.
The top rate of tax rates is 22% which is at S$320,000 of taxable income for residents. While non-residents are taxed at a flat rate of 15% or the resident rate whichever is higher.
Deductions and Personal Reliefs?
You may be able to claim deductions. These can include tuition fees, earned income relief, and support for dependents.
Capital gains: Singapore does not tax any income that can be considered capital gains including the sale of fixed assets, stock or bonds, or intangible assets such as goodwill.
Dividend income: Singapore does not tax dividends issued by Singapore companies; in certain cases, dividends from Hong Kong and Malaysia based companies are also not taxed.
Filing taxes
Personal taxes can be filed online or by mail. To file, IRAS requires each taxpayer to file one of the following forms based on his or her occupation and tax residency status:
- Form B1 – Employed individuals
- Form B – Self-employed individuals
- Form M – Non-resident individuals
After taxes have been filed, the Singapore government will issue the individual with a tax bill known as a Notice of Assessment (NOA) between May and September. Once the NOA has been received, the individual has 30 days to pay the taxes due.
Most taxpayers pay their taxes via GIRO, a one-time payment or 12-month interest-free installments.
If the individual disagrees with the NOA, they can file an Objection of Assessment to correct the tax bill. An Objection of Assessment must be filed within 30 days of receiving the tax bill.
Note that the individual is still obligated to pay the full amount on the NOA within 30 days even if he or she disagrees with the tax bill.
If taxes are not paid within 30 days, IRAS will issue a penalty currently 5% of the amount due.
Resident Tax Rates
| Chargeable Income | Rate (%) | Gross Tax Payable ($) |
| 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 |
Conclusion
Tax in Singapore I believe is relatively straightforward compared to a lot of other countries, however, with anything tax related it can become complicated if you have to file tax in other locations as well.
I have tried to go over what deductions you can apply and how to file depending on certain nationalities. Please be aware it is not exhaustive and if you have a situation you like to talk about, please email me at info@investmentsforexpats.com.
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