• How to calculate Income Tax in Singapore?

    In order to calculate your income tax, you can visit the IRAS (Inland Revenue Authority of Singapore) website and navigate to the "Calculators" webpage. This webpage contains tax calculators for all sources of income. The tax calculators are in an "Excel" format which you need to download and then fill in the requested income sources to calculate your chargeable income and payable tax.

    There are separate calculators for tax residents and nonresidents.

    Income Tax Calculator for Tax Resident Individuals (YA 2018)

    You will be required to fill in your income for various sources; here's a preview of what the calculator asks of tax residents:

    Employment income

    • You will have to fill-in your gross employment income for this section which includes any bonuses you have received, fixed allowances and other benefits.
    • It should also include your CPF amount. Be careful as to not deduct your CPF amount from your gross employment income when entering the final amount.
    • Fill-in your employment expenses that will be deducted from your employment income as it is not a chargeable income for tax purposes.
    • Income earned from trade, business, profession or vocation.

    Other income:

    • Indicate your other income that includes dividends, interest earned on deposits that are NOT from licensed finance companies or approved banks in Singapore, your net rent from property, your royalty, charge, estate/trust income and gains or profits in the form of income that does not fit into any of the above categories of income.
    • If you have made any approved donations, enter that in the corresponding section. Put the value 2.5x the actual amount you have donated to an approved Institution of Public Character (IPC). For instance, if you have donated S$150, then enter the value as S$375 (S$150 x 2.5). This amount is non-chargeable for tax purposes.

    Personal relief:

    Any and all personal reliefs are non-chargeable expenses for tax purposes and include the following:

    • Earned income relief
    • Spouse/handicapped spouse relief
    • Qualifying/handicapped child relief
    • Working mother's child relief
    • Parent/handicapped parent relief
    • Grandparent caregiver relief
    • Handicapped brother/sister relief
    • CPF/provident fund relief
    • Life insurance relief
    • Course fees relief
    • Foreign maid levy relief
    • CPF cash top-up relief (self, dependent and Medisave account)
    • SRS (Supplementary Retirement Scheme) relief
    • NSman (self/parent/wife) relief

    Note: The total personal relief that can be claimed starting from Year of Assessment 2018 is capped at S$80,000.

    Parenthood tax rebate:

    • First child - S$5,000
    • Second child - S$10,000
    • Third child onwards - S$20,000

    Illustration for using income tax calculators for tax residents(Case Study)

    Mr. 'X' wants to calculate how much taxes he has to pay for YA 2018. So first, he downloads the "Income Tax Calculator for Tax Resident Individuals file from the IRAS website. Next, he has to provide the various sources of income he received the previous year (until 31 December 2017) and the expenses he incurred.

    Income type Amount
    Employment income S$30,000
    Employment expenses S$5,000 (non-chargeable for tax)
    Other income S$3,500
    Approved donations S$500 (actual amount of S$200 x 2.5) (non-chargeable for tax)
    Personal relief S$0
    Chargeable Income S$28,000
    Net Tax Payable S$160

    Note: To check the income tax rates for various income brackets, click here

    Income Tax calculator for non-resident individuals (YA 2017)

    Non-resident individuals include locals as well as foreigners who are in Singapore for less than 183 days.

    You have to fill in your income for various sources; here's a preview of what the calculator asks of non-tax residents:

    Employment income:

    • You will have to fill-in your salary, bonus, director's fee and other employment income such as gratuity, part-time income, allowances, etc.
    • When entering the values for the above, do not deduct the CPF amount paid.
    • Provide your allowable employment expenses which will be deducted from your chargeable income for tax purposes.

    Other income:

    • This includes income earned from pension, interest earned on deposits that are NOT from approved banks or licensed finance companies in Singapore, rent or income derived from property and royalty, charge, estate/trust income.
    • Approved donations: The value you enter for your approved donations should be 3 times the actual donated amount to an IPC. For instance, if you have donated S$150, then enter the value as S$450 (S$150 x 3). This amount is non-chargeable for tax purposes.

    Personal reliefs:

    This section is applicable to you only if your income is subject to tax at "progressive resident rates" and includes the following:

    • Earned income relief
    • Spouse/handicapped spouse relief
    • Qualifying/handicapped child relief
    • Working mother's child relief
    • CPF/provident fund relief
    • Life insurance relief

    Tax credit:

    Enter the TDS amount (Tax Deducted at Source) from consultation fees, director's fee, interest, etc. This amount is non-chargeable for tax purposes.

    Illustration for using income tax calculators for non-tax residents

    Ms. 'Y' wants to calculate how much taxes she has to pay for YA 2017. So first, she downloads the "Income Tax Calculator for Non-Resident Individuals) file from the IRAS website. Next, she has to provide the various sources of income she received the previous year (until 31 December 2016) and the expenses she incurred.

    Income type Amount
    Employment income S$1000,000
    Employment expenses S$25,000 (non-chargeable for tax)
    Other income S$10,000
    Approved donations S$600 (actual amount of S$200 x 3) (non-chargeable for tax)
    Personal relief S$0
    Chargeable Income S$84,400
    Net Tax Payable S$13,355.06

    Note: The above table does not take into account double taxation. If you are being taxed twice for the same source of income, you can claim Foreign Tax Credit (FTC). To know more about FTC, click here.

  • reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.