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Individual income tax in Singapore is imposed on the personal income of the earning people in Singapore. It is regarded as one of the important taxes in Singapore. The Individual Income Tax in Singapore is primarily based on a progressive tax system.
Assessment: Individual Income Tax in Singapore
- The year of assessment (YA): 1st January to 31st December in a calendar year. The taxes on income earned by an individual are assessed in the following calendar year of assessment.
An individual can earn income in Singapore or the income can be sourced from overseas but received in Singapore. Both are taxable income.
The amount of tax the individual needs to pay depends on the amount of income he earns and the status of his residence in Singapore.
Resident Status
- Resident Individual: An individual in Singapore will be regarded as a resident individual, if he has been in Singapore for not less than 183 days in a calendar year. As a tax resident, the individual needs to pay tax on his income earned in Singapore. The resident individual will get tax relief. The income of the individual will be taxed at graduated rates ranging from 0% to 22%.
- Not Ordinarily Resident (NOR): An individual will be treated as a Not Ordinarily Resident, if he is a resident of Singapore for a particular year of tax assessment and concurrently he is not a resident of Singapore for three successive years of tax assessment immediately before that year of assessment. Not Ordinarily Resident in Singapore will enjoy tax concessions and exemptions. A resident NOR Singapore employee will get tax exemption on any contribution made by his employer to any non-compulsory overseas contribution plan.
- Non-Resident Individual: An individual in Singapore will be treated as a non-resident individual, if he has been in Singapore for not more than 182 days in a calendar year. As a non resident, an individual needs to pay taxes on his income earned in Singapore. The non-resident individual will not get personal reliefs. The non resident individual will be taxed on his income in Singapore at a flat rate of 15 percent.