What does an expatriate in Singapore need to know about paying taxes and how much?

Expatriates need to pay taxes, and the amount of tax depends on how much you have earned and on your tax residency in Singapore.

A  resident expatriate will be taxed on all income earned in Singapore and any overseas income that was brought into Singapore prior to 01 Jan 2004. The income, after deduction of tax reliefs, will be taxed at progressive resident rates. The foreign-sourced income (with the exception of those received through partnerships in Singapore) brought into Singapore on or after 01 Jan 2004 is tax exempt.

Tax implications at a glance

If your period of stay (including work) in Singapore	Resident status	Tax implications
Is 60 days or less	Non-resident	Your short term employment income is exempt from tax.
Is 61 to 182 days in a year	Non-resident	Your income earned in Singapore will be taxed at 15% or progressive resident rates, whichever is higher. Director’s fees and other income earned in or derived from Singapore are taxed at the prevailing rate of 20%
Is at least 183 days in a year	Resident for that year	All your income will be taxed at progressive resident rates.  You may claim tax reliefs.
Is at least 183 days for a continuous period over two years	Resident for both years	As above
Covers three consecutive years	Resident for both years	As above

 

Singapore’s taxation rate is one of the most competitive in the world. After deducting personal reliefs, personal income taxes are levied on a graduated scale which starts at 0% and is capped at a favorable 20%. There is no tax on income derived and received outside of Singapore, and no capital gains or estate taxes to worry about.

	Chargeable Income (SGD$)	Rate (%)	Gross Tax Payable (SGD$)
On the first On the next	$20,000 $10,000	0 3.50	$0 $350
On the first On the next	$30,000 $10,000	- 5.50	$350 $550
On the first On the next	$40,000 $40,000	- 8.50	$900 $3,400
On the first On the next	$80,000 $80,000	- 14	$4,300 $11,200
On the first On the next	$160,000 $160,000	- 17	$15,500 $27,200
On the first On the next	$320,000 $320,000	- 20	$42,700

 

Please refer to the Inland Revenue Authority of Singapore website for more information.