Singapore Personal Income Tax Regulations Overview

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If you earn any form of income exceeding the individual tax-break threshold of S$22,000 per annum in Singapore, chances are you're obligated to pay some form of Singapore income tax. Whether you are a local or foreign employee, or being self-employed engaging in some form of freelancing, it is important to familiarize yourself with the personal income tax Singapore regulations set by the Inland Revenue Authority of Singapore (IRAS). The last thing you wanted is tax-related queries from IRAS during the tax season due to ignorance or negligence.

• Singapore follows a progressive personal income tax procedure wherein the personal income tax rate starts from 0% to 24% on income above S$20,000. Filing of tax returns is required if your annual income is S$22,000 or more. Starting from YA 2024, the top marginal Personal Income Tax rate will be increased from 22% to 24%.
  
  

• Starting from YA 2024, the income tax rate for non-tax residents will be set at 24%.
  
  

• Individuals need not pay any inheritance tax or capital gain. Capital gains derived from the sale or disposal of foreign asset where the gains are assessable as the income of an individual is exempt from tax. The tax exemption will not be granted if the gains are business revenue gains.
  
  

• Singapore levies tax only on the income earned in the country. Apart from a few exceptions, overseas income is exempted from taxation.
  
  

• The tax regulation in Singapore varies according to an individual's tax residency. 
  
  

• Every year, the due date of tax filing is 15 April (18 April if filed electronically), failing which can lead to penalties.
  
  

• The Income tax is assessed on a preceding-year basis.

   

From 1st January 2024, gains received in Singapore from the sale of foreign assets will be taxable