Income Tax in Singapore: A Simple Guide for Expats

Singapore is famous for its clean streets, world-class infrastructure, and business-friendly climate—but it’s also known for something else: low personal income tax rates. If you’re working or living in the Lion City, it’s worth understanding how the local tax system works—especially because your tax status can change depending on how many days you spend in the country.

Let’s break it all down, minus the confusing jargon.

Tax Residency: It All Comes Down to Time

In Singapore, how much tax you pay—and how you’re taxed—depends largely on how many days you’re physically in the country.

Here’s the gist:

• 183 days or more in a calendar year? You’re a tax resident, and your income will be taxed progressively (more on that later).
• 183 days over two years? You’re also considered a resident for both years.
• If you're a permanent resident (PR) and have set up a permanent home here, you're generally treated as a resident too.
• Between 61 and 182 days? You’re a non-resident, and you’ll be taxed at 15% or the progressive resident rates—whichever is higher.
• 60 days or less? You’re usually tax-exempt, unless you’re a director, public entertainer, or other specific professional.

For directors, the income tax rate is flat at 22%, regardless of time spent.

Not sure where you fall? Singapore’s Inland Revenue Authority (IRAS) will usually notify you by SMS in mid-February if you need to file, but when in doubt, check your own income thresholds—or speak with a tax advisor. Better safe than sorry!

When You Must File

Even if you don’t get a message from IRAS, that doesn’t automatically mean you’re off the hook.

You’ll need to file taxes if:

• Your annual net business income exceeds S$6,000, or
• Your total income (including rental) is over S$22,000.

Since 2022, around 120,000 residents are placed on Singapore’s No-Filing Service, meaning they’ll receive a Direct Notice of Assessment (D-NOA) in May instead of needing to file. If that’s you, check the notice carefully and report any discrepancies to IRAS.

The NOR Scheme: A Tax Perk for Global Professionals

Singapore offers a special program called the Not Ordinarily Resident (NOR) Scheme for professionals relocating from abroad.

To qualify:

• You must be a Singapore tax resident for the current assessment year.
• You must have been a non-resident for the 3 years prior.
• You must spend at least 90 days outside of Singapore for work.
• Your Singapore-based income must be S$160,000 or more.

This scheme lets you pay tax only on the portion of your income earned while physically in Singapore. It's valid for 5 years and can be re-applied for if you meet the criteria again.

What Are Singapore’s Income Tax Rates?

For residents, Singapore uses a progressive tax system, meaning the more you earn, the higher your rate—capped at 24% for high earners.

Here’s a simplified look for YA2024 (income earned in 2023):

Income Range (S$)Tax RateFirst 20,0000%20,001 – 30,0002%30,001 – 40,0003.5%......Over 1,000,00024%

In short: Singapore remains one of the most tax-friendly countries for professionals—especially compared to the high rates found in many Western nations.

What If You’re a Non-Resident?

If you’re not a tax resident:

• Your employment income is taxed at 15% flat or 22%, depending on which results in a higher amount.
• Director’s fees, consultancy payments, and similar income are taxed at 22%.
• Public entertainers pay 15% (previously 10%).
• Other types of income (like SRS withdrawals or loan commissions) are generally taxed at 22%.

When and How to File Your Taxes

Singapore’s tax year follows the calendar year: January 1 to December 31. Tax returns are typically due by April of the following year.

You can file:

• Online via the myTax Portal using your SingPass, or
• By paper form, if that’s more your style.

Taxes aren’t deducted at the source—you’ll need to pay them yourself, usually in instalments.

If you’re leaving Singapore, don’t forget to apply for tax clearance—it’s mandatory!

What’s Taxable in Singapore?

Income tax applies to:

• Your salary, bonuses, and housing allowances
• Stock options and other employment benefits
• Rental income, including furniture and maintenance fees paid by tenants

What’s Not Taxable?

Some common forms of income are exempt from tax in Singapore:

• Capital gains (e.g., from stocks or property sales)
• CPF Life payouts
• Medical and education awards
• Lottery or gambling winnings, including 4D, TOTO, and horse racing

Ways to Lower Your Tax Bill

Yes, there are legal ways to reduce how much you owe. Some options include:

• Rental expense deductions (15% of rent + mortgage interest)
• Donations to approved charities (2.5x deduction)
• Course Fees Relief (up to S$5,500)
• Business and self-employed expense deductions
• Parenthood Tax Rebate (PTR) for parents
• Spouse and dependent reliefs

There’s a total cap of S$80,000 in personal reliefs, so plan accordingly.

Area Representative Scheme

If you’re based in Singapore but travel regularly for a foreign employer, you might qualify as an Area Representative. That means you’ll only be taxed on income earned for days spent working in Singapore.

To qualify:

• Your employer must be based outside Singapore
• You must travel regularly for work
• Your compensation is paid by the overseas employer
• You’ll need to file an Area Representative application, plus provide travel logs and employment documents

Good news? Once approved, you don’t need to reapply each year—just keep submitting your travel schedule.

Avoiding Double Taxation

No one wants to pay taxes twice on the same income—and thankfully, Singapore doesn’t expect you to.

The country has signed Avoidance of Double Taxation Agreements (DTAs) with around 100 countries, including:
Australia, China, Germany, India, Indonesia, the UK, and Vietnam—just to name a few.

This means your foreign income may be exempt or credited to avoid double payment.

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