Income tax in Singapore

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Income Tax in Singapore can be categorized into two types, viz. individual income tax [1] and corporate income tax.[2] The two types cover both income earned within the country and outside for individuals and corporate entities.

Individual income tax[edit]

Individual income tax in Singapore is payable on an annual basis, it is currently based on the progressive tax system (for local residents and tax residents), with taxes ranging from 0% to 20% since Year of Assessment 2007. The Year of Assessment (YA) is based on the calendar year commencing 1 January to 31 December, and is payable on a preceding year basis, whereby taxes payable per year of assessment is based on income earned in the preceding calendar year.

Taxation is based on the source principle, in which only income earned at source, in this case in Singapore, or those derived from overseas but received in Singapore, are taxable. Any income arising from sources outside Singapore and received in Singapore on or after 1 January 2004 by an individual (other than partners of a partnership) is exempt from tax. This system has the potential to allow for tax avoidance practiced by individuals who derive income from abroad, gain tax exemptions via their non-resident status there, and use this income outside Singapore. Expatriates and foreign workers in Singapore are also liable for paying income tax.[3]

Corporate income tax[edit]

Corporate income tax like individual income tax is payable on annual basis. However, foreign income earned by a Singapore company may require dual taxation [4] once in the income origin country and in Singapore. In such a case, companies can claim Foreign Tax Credit (FTC) payable on the same income.


  1. ^ "Complete information on individual income tax: Types, filing details and other". IRAS on individual income tax. Retrieved 26 February 2015. 
  2. ^ "Corporate income tax liabilities, types, rate, procedures, etc". 3E Accounting on corporate income tax. Retrieved 26 February 2015. 
  3. ^ "Income tax details for foreigners and expatriates". IRAS on individual income tax. Retrieved 26 February 2015. 
  4. ^ "On dual taxation for income earned from foreign source". 3E Accounting on dual taxation for foreign income. Retrieved 26 February 2015. 

External links[edit]