Personal Taxation

The Singapore Personal Income Tax System is one of the lowest and most progressive in the world. The budget released every year by the Singapore ministry comprises of personal income tax rates that are progressive in nature. In fact, the budget of 2013 announced a personal income tax rebate of 30% for Singapore residents below 60 years of age and 50% tax rebate for Singapore residents aging 60 years and above, subject to a cap of S$1,500.

Singapore Personal Income Tax Rates 2015

The table below shows the personal income tax rates of Singapore as of 2014, before tax rebate:

Personal Income Tax Rates Applicable for YA 2012 to YA 2016
Chargeable Income (S$) Tax Rate (%)
   Less than 20,000 0
20,001-30,000 2
30,001 to 40,000 3.5
40,001- 80,000 7
80,001- 120,000 11.5
120,001-160,000 15
160,001-200,000 17
200,001-320,000 18
Above 320,000 20
Personal Income Tax Rates Applicable for YA 2017 & Onwards
Chargeable Income (S$) Tax Rate (%)
Less than 20,000 0
20,001-30,000 2
30,001 to 40,000 3.5
40,001- 80,000 7
80,001- 120,000 11.5
120,001-160,000 15
160,001-200,000 18
200,001-240,000 19
240,001-280,000 19.5
280,001-320,000 20
320,001 and Above 22

Tax Treatment on Benefits Provided By the Singapore Employer

During the period of employment in Singapore, employers are entitled to offer certain fringe benefits to his/her employees, which are taxable under the Singapore taxation system. Fringe benefits are the gains and profit that employees receive from their employer in Singapore. These benefits are taxed under special concessionary basis, thereby resulting lower income tax rates on them. Below mentioned are some of the notable tax benefits:

  • Medical reimbursements for dependents other than yourself, your spouse and your children
  • Housing allowance
  • Overtime (OT) payments
  • Vehicle provided by the employer as conveyance.
  • Fixed monthly allowances for transportation purposes.
  • Allowances given by the employer for business trips abroad (Per Diem allowances).
  • Fixed monthly allowances for meal or food.

Treatment of Tax on Overseas Income

In general, the income earned overseas by any Singaporean employee on or after January 1, 2004 is not taxable, as per the guidelines put forth by IRAS (Inland Revenue Authority of Singapore). However, there are certain exceptions wherein the overseas income becomes taxable

  • If the overseas employment of an individual is in relation to his/her Singapore employment.
  • If the income earned overseas is received through partnerships in Singapore.
  • If an individual is working overseas at the behest of the Singaporean government.

Due Date for Personal Income Tax Filing

The tax year of Singapore is from January 1 to December 31 and the due date for filing income tax returns is April 15 of each year. The assessment of income tax is done on the preceding year basis. The non-resident individuals of Singapore are taxed at a flat rate of 15% or according to the existing income tax rates, whichever amounts to higher income tax.

The GA Group provides you with income tax planning services, guidance for saving tax on your personal income and many more Singapore tax services. Furthermore, we also help you in the process of filing income tax returns with IRAS along with other related formalities.

Please feel free to contact us at +65 6423 1078 / 9488 5722 or drop in an email at kali@gagrp.com

Contact person:

Mr. Kaliyaperumal Jayaram

Finance & Operations Manager

The GA Group Pte Ltd

+65 9488 5722 (Mobile) / 6423 1078 (Office)

kali@gagrp.com

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