Income Tax in Singapore

Find out all you need to know about employee’s income tax in Singapore with this article.

What elements are considered taxable?

Each profit derived by employees from their employment are considered taxable, unless employees are exempt from income tax or covered by existing tax concession.

Refer to the IRAS guide for the full list.

How to calculate income tax

In Singapore, there are two different methods of calculating income tax based on an individual’s residency status:

  1. Tax Residents – Tax residents are taxed on income sourced both locally and from overseas using a progressive tax system ranging from 0% to 22%.
  2. Non-Tax Residents – Non-tax residents are only taxed on income sourced from Singapore using a flat rate of 15%.

The Inland Revenue Authority of Singapore (IRAS) is responsible for determining a person’s residency status and their tax obligations. Refer to IRAS’s Individual Income Tax Rates table here.

Who is responsible of submitting employee’s income tax to the tax authority?

By default, the employer is responsible for deducting the appropriate amount of income tax from the employee’s salary and submitting their monthly tax filings to the Inland Revenue Authority of Singapore (IRAS). However, this also depends on the declaration made during the tax filing.