• Income Tax Rates in Singapore(updated 2017)

    Residents and non-residents of Singapore have to pay taxes. The income tax rate, however, is based on the tax residency status of the individual.

    You will be considered a tax resident for a Year of Assessment (YA) under the following circumstances:

    • You are a Singapore citizen or a Permanent Resident residing in Singapore OR
    • You are a foreigner staying and/or working in Singapore (except if you are a company’s director) for a minimum of 183 days in the last year (before the current Year of Assessment).

    If neither of the above circumstances are applicable to you, you will be considered a non-resident of Singapore for the purpose of paying taxes.

    Resident Tax Rates for YA 2017

    Income chargeable for Income Tax

    Income Tax Rate

    Gross Tax Payable

    Initial S$20,000 Next S$10,000

    0% 2%

    S$0 to S$200

    Initial S$30,000 Next S$10,000

    Not Applicable 3.50%

    S$200 to S$350

    Initial S$40,000 Next S$40,000

    Not Applicable 7%

    S$550 to S$2,800

    Initial S$80,000 Next S$40,000

    Not Applicable 11.5%

    S$3,350 to S$4,600

    Initial S$120,000 Next S$40,000

    Not Applicable 15%

    S$7,950 to S$6,000

    Initial S$160,000 Next S$40,000

    Not Applicable 18%

    S$13,950 to S$7,200

    Initial S$200,000 Next S$40,000

    Not Applicable 19%

    S$21,150 to S$7,600

    Initial S$240,000 Next S$40,000

    Not Applicable 19.5%

    S$28,750 to S$7,800

    Initial S$280,000 Next S$40,000

    Not Applicable 20%

    S$36,550 to S$8,000

    Initial S$320,000 Post S$320,000

    Not Applicable 22%

    S$44,550

    Update for YA 2017: Residents can get a personal tax rebate of 20% of the taxes payable up to S$500.

    Did you know?

    The personal income tax rates for Singapore residents is progressive, i.e. if you are resident earning a higher income, then you will pay proportionately higher taxes. Currently, 22% is the highest personal income tax rate.

    Resident Tax Rates between YA 2013 and YA 2016

    Income chargeable for Income Tax

    Income Tax Rate

    Gross Tax Payable

    Initial S$20,000 Next S$10,000

    0% 2%

    S$0 to S$200

    Initial $30,000 Next $10,000

    Not Applicable 3.50

    S$200 to S$350

    Initial S$40,000 Next $40,000

    Not Applicable 7%

    S$550 to S$2,800

    Initial S$80,000 Next $40,000

    Not Applicable 11.5%

    S$3,350 to S$4,600

    Initial S$120,000 Next S$ 40,000

    Not Applicable 15%

    S$7,950 to S$6,000

    Initial S$160,000 Next S$ 40,000

    Not Applicable 17%

    S$13,950 to S$6,800

    Initial S$200,000 Next S$120,000

    Not Applicable 18%

    S$20,750 to S$21,600

    Initial S$320,000 Post S$320,000

    Not Applicable 20%

    S$42,350

    Non-Resident Tax Rates YA 2017

    Non-residents are required to pay an employment income tax of 15% or progressive tax rates paid by residents, depending on whichever of the two tax amounts is higher.

    Non-resident tax rates starting from YA 2017 has been increased to 22% from the earlier 20% with the exception of some reduced final withholding tax rates. Income tax by non-residents will be paid according to the type of income earned.

    Income Type

    YA 2017 non-resident tax rates for individuals/withholding tax rate

    Salary earned by directors 

    22%

    Non-resident professionals earning income from activities such as trainers, consultants, coaches, etc.

    22% of your net income or 15% of your gross income

    Non-resident professionals earning income from activities related to public entertainment such as musicians, artists, sportsmen, etc.

    Concessionary rate of 10% (No change made on this tax rate)

    SRS withdrawal made by SRS members who are non-citizens

    22%

    Other income earned by non-residents such as property rental income

    22%

    Income earned from interest or royalty, etc. 

    Reduced final withholding tax rate subject to the following conditions: 

      • Royalty: 10%

      • Interest: 15% OR

      • If the reduced final withholding tax rate does not apply to you: 22%

    Corporate Tax Rates

    Since YA 2010, all companies in Singapore, whether local or foreign, will be taxed at a flat income tax rate of 17% on the company’s chargeable income.

    This is what the corporate tax rates in Singapore have looked like over the years:

    YA

    Between 2005 and 2007

    Between 2008 and 2009

    2010 onwards

    Income Tax

    20%

    18%

    17%

    Corporate Income Tax Rebates/SME Cash Grants for different Years of Assessment:

    Year of Assessment

    Corporate Income Tax Rebates/SME Cash Grants

    Rebate cap

    YA 2011

    5% SME Cash Grant or 20% Corporate Income Tax Rebate, depending on whichever of the two is higher

    Not Applicable

    YA 2012

    5% SME Cash Grant on a one-off basis

    Not Applicable

    YA 2013, 2014 and 2015

    Corporate Income Tax Rebate of 30%

    S$30,000 per YA

    YA 2016

    Corporate Income Tax Rebate of 50%

    S$20,000

    YA 2017

    Corporate Income Tax Rebate of 50%

    S$25,000

    YA 2018

    Corporate Income Tax Rebate of 20%

    S$10,000

    News About Income Tax Rates in Singapore

    • Singapore to Raise GST from 7% to 9%

      The government has declared its intention to increase the Goods and Service Tax to 9% from 7%. The change will come into effect sometime between 2021 and 2025. Heng Swee Keat, the Finance Minister of Singapore, told the parliament about this hike in GST which has remained at 7% since 2007.

      As per the government, the change will be made depending on the state of the economy, the growth in the country’s expenditure, and how resilient the current taxes are. It is expected that the change will be made earlier than later in the period. The increase in GST has become essential because a big gap still exists even after the presence of different options to manage future outlays through judicious spending.

      The people in Singapore were expecting a hike in GST as the nation could no longer avoid social spending to fulfil the needs of its aging residents. The increase in GST by two percentage points could give the government an increased revenue of almost 0.7% of GDP per year. GST was introduced in Singapore in 1994 with a 3% rate. This was later raised to 4% in 2003 and 5% in 2004.

      21st February 2018

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