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Tax Guide Singapore

Singapore also follows a progressive taxation regime. As far as personal taxation is concerned, it can be seen that tax is levied on all income that is derived within Singapore. As far as income outside Singapore is concerned, it is only taxed in the case where the income is claimed by an individual residing in Singapore, and the income results from a partnership in Singapore.

Individuals residing in Singapore are supposed to pay personal allowances, which are further subject to different tax rates that range from 0% to 22%. As far as non-resident individuals are concerned, it can be seen that they are not subject to entitlement towards personal allowance. Furthermore, they are subject to a flat tax rate, levied at 22%. However, in order to compensate for no personal allowances, as well as a higher tax rate, employment income for non-residents in Singapore is taxed at a rate of 15%. In fact, a higher or 15% tax rate is levied.

Personal Income Tax Rates – Residents

As mentioned earlier, it can be seen that for individuals classified as residents of Singapore, income tax is applied at progressive rates. The tax rates for different income levels are mentioned below:

  • For an income between 0 SGD (Singapore Dollars) and 20000 (Singapore Dollars): No taxation is levied.
  • For an income between 20,000 SGD (Singapore Dollars) and 30,000 (Singapore Dollars): A 2% tax rate, on excess is applied.
  • For an income between 30,000 SGD (Singapore Dollars) and 40,000 (Singapore Dollars): A tax of 200 SGD and a 3.5% on access is applied.
  • For an income between 40,000 SGD (Singapore Dollars) and 80,000 (Singapore Dollars): A tax of 550 SGD and a 7% on access is applied.
  • For an income between 80,000 SGD (Singapore Dollars) and 120,000 (Singapore Dollars): A tax of 3350 SGD and a 11.5% on access is applied.
  • For an income between 120,000 SGD (Singapore Dollars) and 160,000 (Singapore Dollars): A tax of 7950 SGD and a 15% on access is applied.
  • For an income between 160,000 SGD (Singapore Dollars) and 200,000 (Singapore Dollars): A tax of 13,950 SGD and a 18% on access is applied.
  • For an income between 200.000 SGD (Singapore Dollars) and 240,000 (Singapore Dollars): A tax of 21,550 SGD and a 19% on access is applied.
  • or an income between 240,000 SGD (Singapore Dollars) and 280,000 (Singapore Dollars): A tax of 28,750 SGD and a 19.5% on access is applied.
  • For an income between 280,000 SGD (Singapore Dollars) and 320,000 (Singapore Dollars): A tax of 36,550 SGD and a 20% on access is applied.
  • For an income over 320,000 SGD (Singapore Dollars): A tax of 44,550 SGD and a 22% on access is applied.

Personal Income Tax Rates – Nonresidents

For non-residents in Singapore, a flat tax rate of 22% is applied. However, Singapore employment income is taxed at higher of the two between the percentage of 15% and/or at resident rates with personal reliefs. However, for non-resident company directors, the reduced rate is not applicable. It also incurs an additional withholding tax amounting to 22% from the remuneration paid to non-resident directors.

Corporate Taxes in Singapore

For corporations that are based in Singapore, the tax base applies to all the income that is derived from Singapore related sources. On the other hand, as far as foreign income is concerned, it is only taxed in the case where that particular foreign income is remitted inside Singapore.

On the other hand, as far as non-residents are concerned, they are additionally subject to an additional Withholding Tax on certain categories of income. Examples of these categories include interests, royalties, technical service fees, and rental of movable property).

The tax rate applied on Corporate Income in Singapore is taxed at a flat at a rate of 17%.  

Additionally, for corporates, there is also a partial tax exemption available. For start-ups a three year start-up tax exemption is applicable.

Other Corporate Taxes in Singapore

Goods and Service Tax (GST)

In addition to Corporate Income Tax in Singapore, a consumption tax, in the form of Goods and Service Tax is also applicable. The Goods and Service Tax (GST) is applicable at the rate of 7%. However, there are a couple of services that are exempt from GST, including financial services, as well as rental properties. Some goods and services are also zero-rated, including export of goods, as well as international services. However, GST is applied on almost all imported goods and services.

Customs and Excise Duties

Singapore is a free port, which has minimal import restrictions. Customs and excise duties are mostly imposed on motor vehicles, liquors, as well as petroleum products.

Property Tax

Property Taxes are annually levied on annual value of houses, land, and buildings.

As far as residential properties are concerned, the owner-occupier tax rates vary from 0% to 16%. On the other hand, non-owner occupied tax rates vary from 0% to 20%. The rates vary depending on annual value brands.

On the other hand, as far as non-residential properties are concerned, the applicable tax rate is 10%.

Foreign Workers Levy

Foreign workers levy is a monthly levy that abides employers to pay for each foreign employee that they have on payroll. The levy rate, however, varies from industry to industry, as well as the ratio of foreign employees to local permanent residents employed in the given country.

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