Income is taxable when it is accrued in or derived from Singapore, regardless of the individual’s residency status. Foreign-sourced income is taxable only if received in Singapore by a resident individual through a local partnership.
Resident individuals enjoy personal reliefs and graduated tax rates from 0% to 24%. In contrast, non-residents are taxed at a flat rate of 24% with no reliefs. However, employment income of non-residents is taxed at either 15% or the resident rates (without reliefs), whichever is higher. This concession excludes non-resident directors.
A resident individual’s taxable income (after setoff of personal reliefs and deductions) is subject to income tax at progressive rates. Current rates from the year of assessment 2025 (income year 2024) are shown below.
| Taxable income (SGD) | Taxable income (SGD) | Year of assessment 2024 onwards | Year of assessment 2024 onwards |
|---|---|---|---|
| Over (column 1) | Not over | Tax on column 1 (SGD) | Percentage on excess (%) |
| 0 | 20,000 | – | – |
| 20,000 | 30,000 | – | 2 |
| 30,000 | 40,000 | 200 | 3.5 |
| 40,000 | 80,000 | 550 | 7 |
| 80,000 | 120,000 | 3,350 | 11.5 |
| 120,000 | 160,000 | 7,950 | 15 |
| 160,000 | 200,000 | 13,950 | 18 |
| 200,000 | 240,000 | 21,150 | 19 |
| 240,000 | 280,000 | 28,750 | 19.5 |
| 280,000 | 320,000 | 36,550 | 20 |
| 320,000 | 500,000 | 44,550 | 22 |
| 500,000 | 1,000,000 | 84,150 | 23 |
| 1,000,000 | – | 199,150 | 24 |
For year of assessment 2025, all resident individuals will be granted a tax rebate of 60% of tax payable, capped at SGD 200.
Non-resident individuals are taxed at a flat rate of 24%, except that employment income is taxed at a flat rate of 15% or at resident rates with personal reliefs, whichever yields a higher tax. A non-resident director’s remuneration does not qualify for the reduced rate, and withholding tax (WHT) at 24% must be deducted from remuneration paid to a non-resident director.
Income sourced in or derived from Singapore is subject to tax. Foreign income received in Singapore is generally not taxable unless under specific circumstances. Individuals are taxed only on certain income types, including:
Employment income in Singapore is taxable. This includes salaries, bonuses, commissions, allowances (e.g., housing, car), pensions, retirement and retrenchment benefits, and payments in lieu of notice. Non-taxable items include genuine redundancy payments, restrictive covenant payments, medical benefits available to all staff, skill-upgrading training, and staff welfare activities.
Shares granted as part of remuneration are taxable. If there are no vesting conditions, tax is due in the year of grant. With vesting conditions, tax applies upon vesting—even if the employee has left Singapore.
Share options are taxable upon exercise. For foreign employees leaving Singapore, the “deemed exercise” rule applies, meaning unexercised options or unvested shares are taxed as if exercised/vested at the time of departure, even if the individual remains in Singapore but changes employers.
Director’s fees from a Singapore-incorporated company are taxable. Fees earned by a Singapore tax resident from serving a foreign company are not taxable.
Rental income from property in Singapore is taxable. Profits from property sales are not taxed as capital gains. However, frequent transactions may be treated as a trade, and profits could then be taxed as income.
Interest from local banks and approved financial institutions is tax-exempt. Other interest—such as from private loans, non-approved institutions, or pawnshops—is taxable.
Gains from the sale of property, shares, or financial instruments are typically not taxable. However, if such transactions are frequent and indicate trading intent, the gains may be treated as taxable income.
When to file income tax returns?
The deadline for e-filing income tax returns is 18 April, while for paper filing, it is 15 April.
Individuals must file an income tax return if they receive a letter, form or an SMS from IRAS informing them to do so, regardless of their income level. On the other hand, they may also receive a letter or SMS from the IRAS stating that they do not need to file a tax return, often because the individual’s employer participates in the auto inclusion scheme. However, even with this notification, individuals can still file a return if they have additional income or deductions to declare.
The assessment, issued in May each year, notifies the taxpayer of their tax liability. This amount can be paid in one lump sum or in instalments via Giro. Employers are not required to deduct tax payments from salaries, so individuals must ensure they have sufficient resources to settle their tax bills.
Tax relief claims are only permissible for tax residents, including non-Singapore citizens spending over 183 days in a year in Singapore. These reliefs include:
- Earned income relief
- Spouse handicapped spouse relief
- CPF relief for employees
- Grandparent caregiver relief
- Parent/handicapped parent relief
- Working mother’s child relief
- Course fees relief
- SRS relief
To avoid costly mistakes and ensure accurate reporting, we strongly recommend seeking advice from our tax professionals before filing your tax return or making financial decisions that could have tax consequences.
