What is the Tax Rate?
Income tax rates depend on an individual’s tax residency status and different tax rates apply to tax residents and non-residents as provided below.
Tax Rates for Resident Individuals
Individuals are taxed at progressive tax rates. For Year of Assessment (YA) 2020, individual tax rates start at 0% and is capped at 22% (for chargeable income above S$320,000) for residents.
Tax Rates for YA 2020
| Chargeable Income ($) | Rate (%) | Gross Tax Payable ($) | |
| On the first | 20,000 | 0 | 0 |
| On the next | 10,000 | 2 | 200 |
| On the first | 30,000 | – | 200 |
| On the next | 10,000 | 3.5 | 350 |
| On the first | 40,000 | – | 550 |
| On the next | 40,000 | 7 | 2,800 |
| On the first | 80,000 | – | 3,350 |
| On the next | 40,000 | 11.5 | 4,600 |
| On the first | 120,000 | – | 7,950 |
| On the next | 40,000 | 15 | 6,000 |
| On the first | 160,000 | – | 13,950 |
| On the next | 40,000 | 18 | 7,200 |
| On the first | 200,000 | – | 21,150 |
| On the next | 40,000 | 19 | 7,600 |
| On the first | 240,000 | – | 28,750 |
| On the next | 40,000 | 19.5 | 7,800 |
| On the first | 280,000 | – | 36,550 |
| On the next | 40,000 | 20 | 8,000 |
| On the first | 320,000 | – | 44,550 |
| In excess of | 320,000 | 22 | |
Tax rates for Non-Resident Individuals
Generally, non-resident individuals are taxed at a flat rate of 22%. However, for non-residents deriving employment income, a flat rate of 15% or the progressive resident tax rate (see table above) is levied on employment income, whichever results in a higher tax liability.
With certain exemptions, short-term employment income from an employment exercised in Singapore for 60 days or less can be exempt from tax.
When is an individual regarded as a tax resident in Singapore?
An individual can be regarded as a tax resident in Singapore if the individual is:-
- a Singapore citizen or Singapore Permanent Resident who resides in Singapore except for temporary absences; or
- a foreigner who is physically present or has exercised employment (other than as a director of a company) in Singapore for 183 days or more in the year preceding the year of assessment. He or she need not be continuously present in Singapore for 183 days and being present for any part of a day can be counted as a whole day.
Who can be taxed at the individual income tax rate?
Individuals (being natural persons) including partners of partnerships and sole proprietors are taxed at progressive individual income tax rates.
What are the reliefs available for tax residents?
The total amount of personal reliefs that a tax resident individual can claim will be capped at S$80,000 for YA 2020. The applicable reliefs available for tax residents are as follows:
| Earned Income Relief | YA 2020 | |||
| Below 55 years old | S$1,000 | |||
| For the handicapped | S$4,000 | |||
| 55 to 59 years old | S$6,000 | |||
| For the handicapped | S$10,000 | |||
| 60 years old and above | S$8,000 | |||
| For the handicapped | S$12,000 | |||
| YA 2020 | ||||
| Spouse Relief | S$2,000 | |||
|
Handicapped Spouse Relief |
S$5,500 |
|||
| Staying with Dependant | Not staying with Dependant | |||
| Parents, grandparents, parents-in-law and grandparents-in-law relief
(up to 2 dependants) |
S$9,000 | S$5,500 | ||
| Handicapped parents, grandparents and grandparents-in-law relief
(up to 2 dependants) |
S$14,000 | S$10,000 | ||
| Grandparent caregiver relief
(claimable by working mothers only) |
S$3,000 | |||
| Handicapped sibling and sibling-in-law relief | S$5,500 | |||
| NSmen relief | General Population | NS key command and staff appointment holder | ||
| For those in active service (perform NS activities in the preceding year) | S$3,000 | S$5,000 | ||
| For those not in active service (did not perform NS activities in the preceding year) | S$1,500 | S$3,500 | ||
| For parent or wife | S$750 | |||
| Children relief | ||||
| Normal child relief | S$4,000 per child | |||
| Handicapped child relief | S$7,500 per child | |||
| Working mother’s child relief (claimable by wife only) | ||||
| 1st child | 15% of mother’s earned income | |||
| 2nd child | 20% of mother’s earned income | |||
| 3rd child and beyond | 25% of mother’s earned income | |||
| Maximum relief per child (inclusive of qualifying child relief, handicap child relief plus working mother child relief) | S$50,000 | |||
| Foreign Maid Levy Relief
(claimable by married women only) |
Twice the amount of the foreign domestic worker levy paid in the previous year on one foreign domestic worker | |||
| Course Fee Relief | S$5,500 | |||
| Central provident fund (CPF) / approved pension / provident fund relief | ||||
| Compulsory contributions as an employee | Capped by the amount of compulsory employee CPF contributions made in respect of Ordinary Wages and Additional Wages under the CPF Act | |||
| Contributions to CPF Medisave Account (voluntary contributions) | Subject to a cap restricted to the lowest of the following:-
a) Voluntary cash contribution directed specifically to Medisave Account; or b) Annual CPF contribution cap for the year, less Mandatory Contribution (MC*); or c) Prevailing Basic Healthcare Sum, less the balance in Medisave Account before the voluntary cash contribution.
*MC refers to compulsory contribution by employee and his employer, and compulsory Medisave Account for self-employed individuals |
|||
| Contributions to top up Retirement Account or Special Account (does not exceed the limit on cash top-up amount) |
||||
| By taxpayer or his/her employer to his/her account | Lower of actual cash top up or S$7,000 | |||
| By taxpayer to his/her spouse, sibling, parents or parents-in-law and grandparents or grandparents-in-law account | Lower of actual cash top up or S$7,000 | |||
| Life insurance relief | Subject to a cap restricted to the lowest of the following:-
a) Life insurance premium paid; or b) 7% of the capital sum assured on own or wife’s life; or c) The difference between S$5,000 and CPF contributions. |
|||
| Supplementary Retirement Scheme (SRS) relief | Lower of actual SRS contribution or SRS contribution cap^ applicable | |||
| ^ The SRS contribution cap for Singapore citizen or permanent resident and foreigner are S$15,300 and S$35,700 for YA2020 respectively. | ||||
When are the due dates for filing my returns?
Individual tax returns will need to be filed by 15 April for paper filing or 18 April for e-filing of each year.
For YA 2020, the deadline for filing individual tax returns has been extended to 31 May 2020 (for both paper filing and e-filing) in light of the COVID-19 outbreak.
What happens if I disagree with the assessment?
Where the taxpayer disagrees with the assessment, an objection must be raised within 30 days from the date of service of the Notice of Assessment (NOA). Regardless of any objection lodged against tax assessments, the full amount of tax must be paid within one month from the date of service of the NOA.
What happens if I am late in filing?
If you do not file your tax return by the due date, IRAS may take the following enforcement actions:-
- Impose a late filing fee of up to S$1,000;
- Issue an estimated NOA (for which you will be required to pay the tax amount based on IRAS’ estimated NOA within 30 days);
- Summon you to Court;
- Issue you a Warrant of Arrest; or
- Take prosecution actions against you and upon conviction, impose a penalty that may be twice the tax amount assessed by IRAS and a fine of up to S$1,000.
This information was last updated on 29 April 2020.
Please note that there may be changes to the law subsequent to the date of update indicated above. We shall not be responsible or held accountable in any way for any damage, loss or expense whatsoever, arising directly or indirectly from any inaccuracy or incompleteness in the contents of the write-up herein. We shall not be responsible or held accountable in any way for any decision made or action taken by you or any third party in reliance upon the contents herein. This information aims to provide a better general understanding of taxpayers’ tax obligations and is not intended to comprehensively address all possible tax issues that may arise.