Personal Income Tax

Singapore's personal income tax system is highly attractive compared to most Western nations. It is progressive, meaning higher income earners pay a higher percentage of tax, but the top marginal rate remains low.

Determining Tax Residency

Your tax rate depends entirely on your residency status. You are considered a Tax Resident if you are:

1. A Singapore Citizen or Permanent Resident residing in Singapore.
2. A foreigner who has stayed or worked in Singapore for 183 days or more in the year preceding the Year of Assessment.

Resident Tax Rates (From YA 2024 onwards)

Residents enjoy progressive rates ranging from 0% to 24%.

• First S$20,000: 0%
• Next S$10,000: 2%
• ...scales up...
• S$500,000 to S$1,000,000: 22.5%
• Above S$1,000,000: 24% (New top tier introduced recently).

Additionally, there is no Capital Gains Tax in Singapore. Profits from the sale of shares or property (unless you are deemed to be trading in them) are entirely tax-free.

Non-Resident Tax Rates

If you stay in Singapore for less than 183 days, you are a non-resident.

• Employment Income: Taxed at a flat rate of 15% to 24%, or the progressive resident rate, whichever results in a higher tax amount.
• Director's Fees: Taxed at a flat rate of 24%. This is critical for foreign founders who pay themselves director's fees without residing in Singapore.