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Personal Income Tax for Singaporean

This guide is not meant to be a comprehensive guide on Singapore Individual Income Tax. It only covers the tax obligations for Individuals who are Sole-proprietors (Self Employed) or Employees.


Taxable Income


  • Any income that is "accrued" or received in Singapore by a person or business is subject to income tax.
  • In essence, it means that if your customer pays you for a product in Singapore or you receive money from your overseas sales in Singapore, the money is subject to tax.
  • Taxable income includes income from your business, salary from employment, interest earned on your deposits and rental income.


Capital Gains


  • Capital gains are not subject to tax.
  • For instance, if you buy and sell shares at a profit, the profit is not subject to tax. However, the dividends that you earn from the shares are income and subject to tax.

The tax rates for are shown in the table below. Taxes are charged progressively (0% - 20%) on your chargeable income. The chargeable income is your income plus any other personal income, minus all deductions, relief's and rebates.


For Year of Assessment 2007


Chargeable Income ($) Rate (%) Gross Tax Payable ($)
On the first
On the next
20 000
10 000
0
3.50
0.00
350.00
On the first
On the next
30 000
10 000
5.50
350.00
550.00
On the first
On the next
40 000
40 000
8.50
900.00
3 400.00
On the first
On the next
80 000
80 000
14
4 300.00
11 200.00
On the first
On the next
160 000
160 000
17
15 500.00
27 200.00
On the first
Above
320 000
320 000
20
42 700.00

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