Individual Tax Regulations in Singapore

Singapore’s individual income tax rates are progressive, meaning the rate of tax increases as the taxable income increases. As of my knowledge cutoff in September 2021, the rates range from 0% to 22%. Here is a general overview:

  1. Resident Tax Rates: For tax residents, the tax rate is progressive and ranges from 0% to 22%. A person is considered a tax resident if they are a Singaporean; a Singapore Permanent Resident who has established a permanent home in Singapore; or a foreigner who has stayed or worked in Singapore for 183 days or more in the previous year.
  2. Non-Resident Tax Rates: Non-residents are taxed at a flat rate of 15% or the progressive resident tax rate, whichever results in a higher tax amount, on employment income. Director’s fees and other income are taxed at the prevailing rate of 22%. However, certain types of income, like bank interest and dividends from a Singaporean company, are tax-exempt.
  3. Not Ordinarily Resident (NOR) Scheme: The NOR scheme provides tax concessions for certain types of income to qualified individuals who are not ordinarily residents in Singapore. The scheme lasts for a period of five years.

Other elements of the individual tax system include:

  • Tax Reliefs and Rebates: Singapore’s tax system provides various reliefs and rebates to reduce taxable income, such as Earned Income Relief, Spouse Relief, Child Relief, and others.
  • Tax Filing: The tax year is the same as the calendar year, i.e., from 1st January to 31st December. All individuals must file their income tax returns by 15th April of the following year.
  • Goods and Services Tax (GST): This is a broad-based consumption tax levied on the import of goods, as well as nearly all supplies of goods and services in Singapore. As of my knowledge cutoff in September 2021, the GST rate is 7%.

This is a general overview of individual tax regulations in Singapore as of my last training cut-off in September 2021. For the most updated information, you should refer to the website of the Inland Revenue Authority of Singapore (IRAS) or consult a tax professional.

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