How to Calculate Income Tax in Singapore

Use a calculator to work out what income tax is due in Singapore

Singapore's income tax rates are among the lowest in the world, and haven’t changed since 2007. The calculation of income tax in Singapore is progressive. Income tax rates start at zero percent and increase to 20 percent when taxable income exceeds SG$320,000. Tax is chargeable only on income earned in Singapore. You must complete an income tax return by April 15 each year, if your income for the preceding year was above SG$22,000. Different tax rules apply depending upon your residency status. You are considered a resident if you are Singaporean from birth, or have become a permanent resident with your home in Singapore. You are considered a resident if you are a foreigner who has worked for 183 days, or more, in any one tax year.

Things You'll Need

• Calculator

Instructions

1. Work out what income you have earned during the preceding tax year. This is the total income you have earned during that year. You must include employment income (whether derived from being employed or self-employed), dividends, interest, profits and investment income. Employer-provided benefits must also be included. In Singapore these may include cars, travel and meal allowances and overtime payments.

2. Deduct allowable tax exemptions from your total income. Your allowable exemptions include employment-related costs, donations to authorized charitable organizations and educational course costs. The net result is your taxable income, used to calculate your income tax in Singapore.

3. Separate your total taxable income into tax bands. The first band is up to SG$30,000. The first SG$20,000 is tax-free. Deduct 3.5 percent from the next SG$10,000 (SG$350). If your taxable income doesn’t exceed SG$30,000, your maximum tax is SG$350.

4. Deduct 5.5 percent from your taxable earnings up to a further SG$10,000 (SG$550 maximum on this band). If your income doesn’t exceed SG$40,000, the maximum tax payable in total is SG$900.

5. Deduct 8.5 percent from taxable income for the next SG$40,000. Add the SG$900 to the amount for this band (maximum of SG$3,400). Your total tax on taxable income of SG$80,000 is SG$4,300.

6. Deduct 14 percent from taxable income between SG$80,000 and SG$160,000 (SG$11,200 maximum). Add the figure to SG$4,300 to give a maximum total of SG$15,500.

7. Deduct 17 percent from taxable income between SG$160,000 and SG$320,000 (SG$ 27,200 maximum). Add the figure to SG$15,500 to give a maximum total of SG$42,700.If your taxable income exceeds SG$320,000, deduct 20 per cent from all earnings above SG$320,000 and add to SG$42,700.

Tips & Warnings

• If you spend fewer than 60 days in any one tax year in Singapore you are generally exempt from tax (exceptions apply).

• If you work in Singapore for between 61 and 182 days you pay tax on all income. You can claim certain deductions.

References

• Inland Revenue Authority of Singapore: Filing tax: How to calculate my tax
• Inland Revenue Authority of Singapore: Most Frequently Asked Questions
• Inland Revenue Authority of Singapore: Filing tax, deductions to save tax
• Guide Me Singapore: Singapore Personal Income Tax Guide