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Personal Tax

Personal-Tax

The personal income tax Singapore provides certain unique benefits to its citizens so as to enable a Singaporeans to file a reasonable personal tax return. The tax rates start from 0% for income below S$20,000 to a maximum of 20% for income above S$320,000.

The Singapore Personal Tax System is progressive in nature and one of the lowest in the world. This is one of the primary reasons for businessmen and individuals alike to choose Singapore as their residence and enjoy the benefits of this friendly tax regime of Singapore. Further details pertaining to Singapore personal income tax is given below.

Personal Income Tax Rates in Singapore

The following table illustrates the current personal income tax rates of Singapore:

Personal Taxable Income (in S$)

Income Tax Rate (%)

Less than 20,000

0

20,000 – 30,000

2

30,000 – 40,000

3.5

40,000 – 80,000

7

80,000 – 120,000

11.5

120,000 – 160,000

15

160,000 – 200,000

17

200,000 – 320,000

18

Above 320,000

20

The due date for the tax filing in Singapore is April 15 of each year and the income tax is assessed on the basis of the preceding year. Non-residents in Singapore are taxed at a flat rate of 15% or at the aforementioned rates whichever amounts to higher income tax.

Tax on Income Earned Overseas

According to IRAS (Inland Revenue Authority of Singapore), any overseas income received on or after January 1, 2004 is not taxable. Although, there are certain circumstances under which the overseas income is taxable:

  • The overseas income received in Singapore is via partnerships in Singapore.
  • You are employed out of Singapore on behalf of the government of Singapore.
  • Your overseas employment is in unison to your Singapore employment i.e. travelling abroad as part of your employment in Singapore.

Tax on Employer Benefits

The employer benefits include all gains and profits fetched by you from your employer in respect of your employment in Singapore. These benefits are taxable under the Singapore personal income tax and the kinds of benefits are as follows:

  • Accommodation and housing allowance
  • Overtime payments
  • Car or vehicle provided by the employer
  • Medical reimbursements for dependents excluding yourself, your spouse and your children.
  • Per Diem allowances i.e. allowances provided by the employer for overseas business trips, provided the amount is in excess of the accepted rates.
  • Fixed monthly transportation allowances
  • Fixed monthly meal or food allowances

At Singaporeaccounts.com we avail you services that include strategic planning and guidance as part of the minimization of your personal income tax you pay to the government of Singapore. Apart from that, we also assist in the document preparation for the purpose of annual income tax return filing.

Please feel free to contact us on +65 6536 0036 or drop in an email at info@accountingservice.com.sg

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