Singapore Taxes





Singapore Tax 2021

Last partial update, September 2021.

Individual Income Tax: Singapore's individual income tax rates for 2021 are progressive, from 2% to 22%.

Personal annual tax rates 2021 (SGD, Singapore Dollar)



Income (Singapore DOLLAR) %
1-20,000 -
20,001-30,000 2
30,001-40,000 3.5
40,001-80,000 7
80,001-120,000 11.5
120,001 -160,000 15
160,001-200,000 18
200,001-240,000 19
240,001-280,000 19.5
280,001-320-000 20
Over 320,001 22




Non-residents pay the higher of15% or general rates on employment income and 22% on director's fees, consulting fees and other income.

Corporate Tax: Singapore corporate tax rate for 2021 is 17%.
There are reductions for the first SGD 200,000.
75% of the first SGD 10,000 and 50% of the next SGD 190,000 are tax exempt.

Capital Gains: There is no capital gain tax for both companies and individuals.
Dividend income is tax exempt by the recipients.

Singapore Residence

A company is resident when having its actual management in Singapore.
Individuals are resident when generally living in Singapore.
Foreigners are residents if living in Singapore 183 days or more in a calendar year.
The Singapore income tax is imposed on a territorial basis.
Singapore companies and individuals pay income tax only on Singapore source income.
Income derived outside of Singapore is tax exempt.



Singapore Business Deductions

  • Losses are carried forward indefinitely. There is a carry back for one year up to $ 100,000.
  • Depreciation is deducted according to the type of the fixed asset.
    The depreciation rate for hardware, software and automation equipment is 100% (one year).Fixed asset of up to $ 1,000 can be depreciated in one year too.
  • Vehicles and other fixed assets are depreciated 33.3% per year.
  • Research &development ,R&D ,in the years 2019-2025 are 250% tax deductible subject to terms.
  • There is no company consolidation for tax purpose.
    Under certain term companies from the same group can offset within the group unutilized loss and capital allowances.
  • Thin capitalisation rules are not in effect in Singapore.


Singapore Tax Credits and Deductions (Singapore dollar)

For Singapore residents there are tax credits and deductions.
Courses fees relief- up to $5,500 per year.
For handicapped people a relief of $4,000-$12,000 depending on age.
Relief for handicapped parent/grandparent $9,000-$14,000 staying/non staying parent/grandparent.
Handicapped child relief $7,500 per child.
Handicapped spouse relief $5,500.
Medical expenses - not deductible.



Singapore Tax Withholding Rates

In Singapore tax is deducted at source from the following payments to nonresident companies:
Dividend- 0%.
Interest- 15%.
Royalties- 10%.
Branch remittance to head office- 0%.

Singapore Social Security CPF (Central Provident Fund)

The contributions by the employer and the employee to CPF, central provident funds are subject to to ceiling defined by law.

Employer: 17% of the gross salary.
Employee: 20% of the gross salary.


More info www.iras.gov.sg



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