Singapore: Living There - Tax Issues
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Living There
INDIVIDUAL TAXATION
Non-residents are liable to tax on their Singaporean-sourced income. Married couples are generally taxed jointly but a couple may elect separate taxation.
INCOME TAX
Residents are taxed at progressive rates on their income. The income tax rates for 2007 were as follows:
INCOME TAX RATES FOR 2007 |
|
| TAXABLE INCOME, SGD (US$) | MARGINAL TAX RATE |
| Up to 20,000 (US$14,093) | nil |
| 20,000 – 30,000 (US$21,140) | 3.50% on band over US$14,093 |
| 30,000 – 40,000 (US$28,187) | 5.50% on band over US$21,140 |
| 40,000 – 80,000 (US$56,374) | 8.50% on band over US$28,187 |
| 80,000 – 160,000 (US$112,748) | 14% on band over US$56,374 |
| 160,000 – 320,000 (US$225,495) | 17% on band over US$112,748 |
| Over 320,000 (US$225,495) | 20% on all income over US$225,495 |
| Source: Global Property Guide | |
Residents are entitled to various tax reliefs (tax allowances), which can be deducted from their assessable income to arrive at their taxable income.
Tax Reliefs
- An SGD2,000 (US$1,409) allowance for the spouse who earns up to SGD2,000 (US$1,409) income (this allowance is not available to taxpayers whose spouse is earning more than the threshold amount)
- An SGD3,500 (US$2,466) for a handicapped spouse
- A child’s allowance of SGD2,000 (US$1,409) for each qualifying child
- An handicapped child’s allowance of SGD3,500 (US$2,466) for each qualifying handicapped child
- A parent relief of SGD3,500 (US$2,466) if the taxpayer is not living with the parent or SGD5,000 (US$3,523) if the taxpayer is living with the parent
- A handicapped parent relief of SGD6,500 (US$4,580) if the taxpayer is not living with the parent or SGD8,000 (US$5,637) if the taxpayer is living with the parent
- A handicapped sibling relief of SGD3,500 (US$2,466) for each handicapped dependant
- Grandparent caregiver relief of SGD3,000 (US$2,114) for one parent of the taxpayer or his spouse
- Provident fund relief of a SGD4,500 (US$3,171) for the year 2006
- Relief for the taxpayer’s and his wife’s premium payments for their life insurance policies
- Course fee relief of up to SGD3,500 (US$2,466) if the taxpayer took up a course leading to approved academic and professional qualifications or vocational qualifications
- Relief for foreign maid levy of SGD7,380 (US$4,636)
CAPITAL GAINS TAX
There is no capital gains tax in Singapore.
PROPERTY TAX
Property Tax
Property tax is based on a percentage of the annual value of the property, i.e., the estimated rent if rented out, with the landlord bearing all expenses. Since 01 July 2001, the property tax has been 10% of the annual value for all residential properties, except owner-occupied dwellings whose owners pay 4% of the annual value. Foreigners pay, in addition, a 10% surcharge.
Singapore - more data and information
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