Income Tax Singapore 2020 Rates Residents

Income tax Singapore

The income tax Singapore is considered one of the lowest in the world, making this city-state quite attractive to foreign investors. The income tax is mainly based on a progressive structure. In order to determine the income tax liability for an individual, one should be able to determine the tax residency and the amount of income that’s chargeable then the progressive income tax rate can be applied to it.

The key points of Singapore income tax for individuals include the following;

  • The progressive tax rate in Singapore starts at 0% and ends at 22% for an amount above S $ 320,000.
  • There is no inheritance tax or capital gain. 
  • Individuals are majorly taxed only on the income earned in Singapore. The income that’s earned by individuals while working overseas is not in any way subject to taxation apart from some exemptions. 
  • Tax rules in Singapore differ based on the tax residency of the individual.
  • The tax filing due dates for individuals are normally by the 15th of each year and income tax gets assessed based on a preceding year basis. 

The Personal Income Tax Rates

The individual residents in Singapore are normally taxed based on a progressive resident tax that’s as per the below list. The filing of a personal tax return for a Singapore resident is mandatory if the annual income is S $ 22,000 or even more. The residents are not required to pay income tax Singapore if their annual income is below s$22,000. However, one may still be required to submit a tax return if Singaporean asks the same

Below is the personal income tax rates;

Chargeable Income Rate % Gross Tax Payable
The first 20,000 0 0
The next 10,000 2 200
The first 30,000 200
On the next 10,000 3.5 350
The first 40,000 550
On the next 40,000 7 2800
First 80,000 3,350
Next 40,000 11.5 4600
First 120,000 7,950
Next 40,000 15 6000
First 160,000 13,950
Next 40,000 18 7,200
First 200,000 21150
Next 40,000 19 7200
First 240,000 28750
Next 40,000 19.5 7800
First 280,000 36,550
Next 40,000 20 8000
First 320,000 44,500
Next 40,000 22  


Personal Tax Rates for Non-Residents of Singapore

 One is considered a non-resident of Singapore for tax purposes if they have stayed in Singapore for over 183 days within a tax year. A non-resident will be liable for tax as below;

  • Your employment income is tax-exempt if you are in Singapore for what’s considered short-term employment, 60 days or less within a year. The exemption is not applicable if you are a director of a company if you are exercising a profession in Singapore or as an entertainer.
  • If you have been in Singapore for 61-182 days within a year; you will be liable for tax on all of the income earned in Singapore. You may consider claiming on expenses or donations to save on tax and that’s why working with a corporate service provider in Singapore is important.

Originally published by onestop-ca.com

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