Individual Tax

 The Singapore Personal Income Tax rate is one of the lowest in the world. In order to determine the Singapore income tax liability of an individual, you need to first determine the tax residency and amount of chargeable income and then apply the progressive tax rate to it.  

Key points of Singapore’s income tax for individuals include:

• Singapore follows a progressive tax rate starting at 0 percent and ending at 22 percent (above S$320,000).
• There are no capital gains or inheritance taxes.
• Individuals are taxed only on the income earned in Singapore. The income earned by individuals while working overseas is not subject to taxation (barring a few exceptions).
• Tax rules differ based on the tax residency of the individual.
• Income tax is assessed on a preceding-year basis.

 Broadly, income earned overseas by Singaporean employees on or after January 1, 2004, is generally not subject to taxation, following the guidelines established by the Inland Revenue Authority of Singapore (IRAS). Nevertheless, specific exceptions exist where overseas income may become 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.

The tax year in Singapore spans from January 1 to December 31, with the deadline for filing income tax returns set for April 15 each year. Income tax assessment follows a preceding year basis. Non-resident individuals in Singapore are subject to a flat tax rate of 15% or the prevailing income tax rates, whichever results in a higher tax liability.

T RAVI PRACTICE PAC offers comprehensive income tax planning services, providing guidance on optimizing personal income tax savings and various other Singapore tax-related services. Additionally, we facilitate the process of filing income tax returns with IRAS and manage associated formalities on your behalf.