Singapore Tax 2021Last 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)||%|
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 ResidenceA 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 RatesIn Singapore tax is deducted at source from the following payments to nonresident companies:
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
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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