Tax services
Personal Income Tax Filing
Globally, Singapore Personal Income Tax structure is one of the most welcoming and competitive compared to other countries, which makes the city-state an ideal location for high-income earners.
Filing your personal income taxes
Filing is different from paying. Filing means notifying the IRAS the amount you earned in the previous year as well as your eligibility for tax reliefs. You only pay when the tax bill arrives, which is usually sometime between May to Sept.
When you start the gathering information required to file personal tax in Singapore, it is important to know that apart from regular monthly salary, your personal income tax is also calculated on your other sources of income such as bonuses, overtime pay, rental income of your property, etc.
However, when you receive a letter indicating that you’re under the “No-Filing Service”, you don’t have to file anything because IRAS already knows how much you earn. All you have to do is countercheck if your details are spot on.
What you need to know when filing your taxes
Five account types make up the chart of accounts: Income and Expenses appear on the profit and loss statement, while Assets, Liabilities, and Owner’s Equity appear on the balance sheet report.
Personal Tax for Singapore Residents
You are considered a tax resident if you are:
- A Singaporean
- A Singapore Permanent Resident with a permanent home in Singapore
- A foreigner who has stayed or worked in Singapore for 183 days or more in the tax year
Personal Tax for Singapore Non-Residents
If you are a foreigner who stayed or worked in Singapore for less than 183 days in the tax year, you are eligible to pay personal income tax as a non-resident. You will be taxed as below:
- Your personal income is exempted from tax if your employment is on a short-term basis of 60 days or less in a year. This exemption does not apply to company directors, public entertainers, or those exercising a profession in Singapore such as experts, speakers, queen’s counsels, consultants, trainers, coaches etc.
- If you are in Singapore for 61-182 days in a year, you will be taxed on all income earned in Singapore. Your employment income is taxed at 15% or the progressive resident tax rate.
- Director fees and remuneration, consultant fees and all other incomes are taxed at a range of 15% to 22%.
Personal Income Tax Rates
If an individual earns an annual income of S$22,000 or more, he/she has to file personal tax return. While those with an annual income of below S$22,000 do not need to file tax returns, they may still need to if they have been informed by Singapore tax authority to do so.
Singaporeans whose overseas employment is for a period of at least six months in any calendar year can choose to be treated as a non-resident for the year of assessment following the year of overseas employment. Foreign income received in Singapore is not subject to tax under certain conditions.
The personal income tax rates for individual residents in Singapore are levied on a progressive resident scale as shown below.
Chargeable Income | Percentage Tax Rate (%) | Gross Tax Payable ($) |
On the First 20,000 On the next 10,000 | 0 2 | 0 200 |
On the First 30,000 On the next 10,000 | – 3.5 | 200 350 |
On the First 40,000 On the next 40,000 | – 7 | 550 2,800 |
On the First 80,000 On the next 40,000 | – 11.5 | 3,350 4,600 |
On the First 120,000 On the next 40,000 | – 15 | 7,950 6,000 |
On the First 160,000 On the next 40,000 | – 18 | 13,950 7,200 |
On the First 200,000 On the next 40,000 | – 19 | 21,150 7,600 |
On the First 240,000 On the next 40,000 | – 19.5 | 28,750 7,800 |
On the First 280,000 On the next 40,000 | – 20 | 36,550 8,000 |
On the First 320,000 In excess of 320,000 | – 22 | 44,550 |
Filing Personal Income Tax Returns
Filing your tax return is an annual obligation for all eligible individuals who must duly complete the forms and submit them to IRAS by the 15th of April.
You can choose to submit your details through mail or by e-filing. Upon request, IRAS will send you the right paper tax form for mail submission, while the online form is always available as from 1 March of every year. The following are the appropriate forms and the taxpayers who should fill them.
- For self-employed – Form B
- For tax resident individuals – Form B1
- For non-resident individuals – Form M
Remember, not to miss the deadlines — 15 Apr for paper form submission and 18 Apr for the online form. Otherwise, you’ll find yourself with more letters from IRAS and worse, a monthly penalty fee of 5% on your outstanding taxes. And for every month you delay payment, the penalty increases by 1%.
Get started, let us know what you need
Do you have any questions about income tax filing or do you need help to file your personal income tax online? Our experts at Tianlong Services can do the income tax filing work for you both accurately and before the deadline. Contact us today by clicking on the Get Started button above!
