Singapore offers some of the lowest personal tax rates in the world, making it an ideal location for high-income earners. Singapore’s personal income tax rate is one of the lowest in the world.

Singapore income tax system

Singapore implements a progressive tax rate, starting from 0% and ending at 22% above SGD 320,000. There are no capital gains or inheritance taxes. Individuals are taxed only on income earned in Singapore. There is no tax on income earned from employment outside of Singapore. This includes income received in a Singapore bank account

The Singapore corporate tax rate is capped at 17%. By maintaining the competitiveness of corporate interest rates, Singapore continues to attract large amounts of foreign investment. Singapore follows a single-tier corporate tax system, and the taxes paid by companies on their profits are not attributed to shareholders (ie, dividends are exempt from tax).

Singapore’s personal tax rate starts at 0%, the upper limit for residents is 22% (over S$320,000), and the flat tax rate for non-residents is 15% to 22%.

 

How to reduce your personal tax 

1. Apply for applicable tax deductions and tax rebates.

2. Contribute to SRS (Supplementary Retirement Scheme)

3. Make voluntary contributions to your MediSave account.

4. Top up your CPF (Central Provident Fund)

5. Apply for the Non-Ordinary Resident (NOR) program.

Key facts

Singapore follows the principle of territorial taxation. In other words, companies and individuals are mainly taxed on Singapore-sourced income. Income from foreign sources (branches profits, dividends, service income, etc.) will be taxed when remitted or deemed to be remitted to Singapore, unless the income has been taxed in a jurisdiction with a title tax rate of at least 15%. 

The current goods and services tax rate is 7%. The balanced combination of consumption tax and income tax reduces the vulnerability of income to adverse changes in economic conditions and enhances the flexibility of Singapore’s fiscal position.

Interest paid to non-residents (individuals or companies), royalties, rent of movable properties, management and technical fees, and directors' fees are subject to withholding tax in Singapore.

For more Singapore tax details, please visit: https://www.iras.gov.sg/irashome/default.aspx 

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