All About Singapore Personal Tax

It is a fact that almost all income accumulated in Singapore is subject to income tax

. All sales transactions that occur in Singapore or monies received in Singapore are taxable. Taxable income includes income from your business, salary from employment, interest earned on your deposits and rental income. There are two categories of taxpayers identified by the Inland Revenue Authority of Singapore (IRAS), Tax Residents and Non-residents.

Tax residents are Singapore citizen or permanent resident who resides permanently in Singapore or a foreigner who has stayed/worked (but not in the capacity of company director) in Singapore for 183 days or more, in the year preceding the YA. On the other hand, a Non-resident taxpayer is other individual taxpayer who is not tax resident and is subject to withholding tax.

On this page, we will be discussing taxation for personal income. Personal Income Tax is a type of Singapores taxation that is the most friendly and competitive in the world. It is payable annually on a preceding year basis. Overseas income received in Singapore is not taxable. This, however, does not apply to overseas income received in Singapore through partnerships in Singapore.

Personal income tax rates follow a progressive pattern where the rate ranges from 0%-20%. The maximum tax rate, for chargeable income above S$320,000, has been reduced over time and has reached the present rate of 20% since YA 2007. Chargeable income is the net income after deduction of expenses, donations, and personal relief.

In Singapore, All taxpayers are subject to filing of annual tax returns with IRAS for the YA based on income earned in the preceding year. The tax filing due date is April 15 of YA. For instance, income earned in Singapore during the calendar year of 2009 needs to be reported in individual tax return due by 15 April, 2010.

For more information on Singapore Personal Tax, please do not hesitate to ask for Rikvins assistance.

by: Shayne Hughes

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