Income tax in Singapore
Taxation Researcher | December 25, 2020
INDIVIDUAL TAXATION
Residents are liable to tax on their Singaporean-sourced income. Married couples are generally assessed separately.
INCOME TAX
Income tax is imposed on the following types of income: (1) income from trade, business, profession, or vocation, (2) employment income, (3) dividends, interests or discounts, (4) pension, charge or annuity, (5) rents, royalties, premiums or any other gains arising from property, and (6) any other income.
Residents are taxed at progressive rates on their income.
INCOME TAX 2017-2020 |
|
| TAXABLE INCOME, SGD (US$) | MARGINAL TAX RATE |
| Up to 20,000 (US$14,815) | 0% |
| 20,000 - 30,000 (US$22,222) | 2% on band over US$14,815 |
| 30,000 - 40,000 (US$29,630) | 3.50% on band over US$22,222 |
| 40,000 - 80,000 (US$59,259) | 7% on band over US$32,000 |
| 80,000 - 120,000 (US$88,888) | 7% on band over US$29,630 |
| 120,000 - 160,000 (US$118,519) | 11.50% on band over US$59,259 |
| 160,000 - 200,000 (US$148,148) | 15% on band over US$88,888 |
| 200,000 - 320,000 (US$237,037) | 18% on band over US$148,148 |
| Over 320,000 (US$237,037) | 20% on all income over US$237,037 |
| Source: Global Property Guide | |
Residents are entitled to various tax reliefs (tax allowances), which can be deducted from their assessable income to arrive at their taxable income.
CAPITAL GAINS TAX
There is no capital gains tax in Singapore.
PROPERTY TAXATION
Property Tax
Property tax is levied on immovable property. Property tax is levied on a percentage of the annual value of the property.
For residential properties occupied by owners, property tax is levied at progressive rates.
PROPERTY TAX FOR OWNER-OCCUPIED PROPERTIES 2015 |
||
| TAX BASE, SGD (US$) | ||
| Up to 8,000 (US$5,926) | 0% | |
| 8,000 - 55,000 (US$40,741) | 4% | |
| 55,000 - 70,000 (US$44,444) | 6% | |
| 70,000 - 85,000 (US$51,852) | 8% | |
| 85,000 - 100,000 (US$74,074) | 10% | |
| 100,000 - 115,000 (US$85,185) | 12% | |
| 115,000 - 130,000 (US$96,296) | 14% | |
| Over 130,000 (US$96,296) | 16% | |
| Source: Global Property Guide | ||
Foreigners pay, in addition, a 10% surcharge.
For residential properties not occupied by owners, property tax is levied from 10% to 20%.
A flat rate of 10% is levied on industrial properties, commercial properties, and rental properties.
CORPORATE TAXATION
INCOME TAX
Companies in Singapore are subject to a flat withholding tax of 17%. Income-generating expenses and operating costs are deductible from the gross income.