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190322 Personal Income Tax Singapore Guide

Singapore Income Tax 2022 Guide: Singapore Income Tax Rates & How to File Your YA2022 Taxes

profileKenneth Lou

If you’re working in Singapore, chances are, you probably need to pay tax.

Source: Inland Revenue Authority of Singapore (IRAS)

Here in Singapore, we follow a progressive personal income tax rate that starts at 0% and maxes out at 22% for employment and self-employment incomes above $320,000.

Thankfully, there is no capital gain or inheritance tax.

Think that this is all too cheem (Hokkien: complex)?

Fret not!

This really simple and essential guide should help you figure out your personal income tax in no time!

This guide is written for Year of Assessment (YA) 2022, the current tax year in which income tax is calculated and charged. The assessment is for income you have earned in the preceding calendar year.

For YA 2022, the assessment for income is on income earned from 1 January 2021 to 31 December 2021.

Also, you have from Tuesday, 1 March 2022 to Monday, 18 April 2022 to file your taxes online.

Alternatively, if you would like to do a paper filing, you will have to do it by Friday, 15 April 2022.

Here’s all you need to know!


TL;DR: Singapore Personal Income Tax Guide 2022 — Year of Assessment (YA) 2022 Singapore Tax Guide

Paying your taxes is mandatory as it helps to fund Government spending on common resources (eg. infrastructure like roads, and security like the Singapore Armed Forces and the Singapore Police Force).

It’s pretty straightforward as you can do it online via myTax Portal or by paper filing.

To pay lesser tax, you can do so through various (legal) ways like charity contributions, NSman deductions, Central Provident Fund (CPF) top-ups etc.

If you want to know exactly how much income you have to pay…

You can use the IRAS Personal Tax Calculator to find out!


Do I Need to File My Income Tax?

Before you get started on filing your income tax, it’s important to understand whether you need to file your income tax or not.

First, let’s clarify tax residency in Singapore.

How Do I Know If I’m A Tax Resident?

Source: everhour

You will be treated as a tax resident for a particular YA if you are a:

  • Singapore Citizen who normally resides in Singapore except for temporary absences
  • Singapore Permanent Resident (SPR) who has established a permanent home in Singapore.

Singapore Income Tax for Foreigners

Also, there is the Singapore income tax for foreigners.

You will be treated as a Singapore tax resident if you are a foreigner who has stayed or worked in Singapore (excluding the director of a company) for 183 days or more in the previous year, i.e. the year before the YA.

Singapore Tax Residents Categories

If you are a Singapore tax resident you would receive either a letter or SMS from IRAS about your income tax.

IRAS groups tax residents into three categories:

1) You Receive a Letter, Form or SMS From IRAS Telling You That You NEED to File Your Income Tax

Pretty straightforward.

This means that you’ll need to file your income tax return via myTax Portal between 1 March to 18 April 2022.

If your employer applied for the Auto-Inclusion Scheme (AIS) for Employment Income, any information about your salary will be pre-filled.

If you’re a commission agent or taxi or private-hire car driver and you and your organisation are participating in the Pre-filling of Income for Self-Employed Persons Scheme, your income information from the organisation will also be pre-filled.

But, you’ll still need to complete the other field in your tax return form before submitting it.

You can also check if your employer is participating in the AIS here.

2) You Receive a Letter or SMS From IRAS Telling You That You DO NOT Need to File Your Income Tax — No-Filing Service (NFS)

If you receive a letter or an SMS telling you that you do not need to file your income tax for the year.

Self-Employed Persons Income Tax Singapore

If you are a Self-Employed Person (SEP) you will have to file under Form B and might receive a different SMS with the following contents depending on your registration for the No-Filing Service (NFS):

FYI: the SMS is sent around mid-February of each year.

If you have been selected for No-Filing Service (NFS), you are not required to file a tax return.

But, you will need to CHECK and verify the information in your tax return is correct.

Also, if you wish to make any adjustments (e.g. verify your income details or relief claims) you can log in to myTax Portal to file it.

The next thing you’ll need to look out for would be your Notice of Assessment (NOA) or tax bill which will be sent to you around end-April.

This will tell you how much income tax is payable.

Please note that it is your responsibility to ensure that your tax bill is accurate. If you have any other income that is not shown in the tax bill, or if your relief claims in the tax bill are incorrect, you need to inform IRAS through the “Object to Assessment” e-Service in myTax Portal within 30 days from the date of your tax bill.

3) You DO NOT Receive Any Notification From IRAS

This DOES NOT mean that you don’t have to file your income tax.

You will still need to file a tax return if your:

  • Annual net business income exceeded $6,000, OR
  • Annual income (inclusive of rental income) was more than $22,000 last year

Just be a good citizen and head over to myTax Portal to file your tax return.

Starting from this year, about 120,000 selected taxpayers on the No-Filing Service will receive a Direct Notice of Assessment (D-NOA).

This means that they will not receive a notification from IRAS during tax filing season but will receive their tax bill directly from May onwards.

The D-NOA initiative will be extended to more taxpayers progressively over the next few years.

IRAS Income Tax Filing Checker

Alternatively, you can use this income tax filing checker from IRAS:

Source: IRAS

How to File Your Income Tax in 2022

It’s really simple.

There are three components to filing your personal income tax.

1) Singapore Taxable Income

You will need to pay income tax on income earned in or derived from Singapore. Generally, overseas income received in Singapore is not taxable, except in some circumstances.

When it comes to income, there is taxable income and non-taxable income.

Taxable Income Singapore

Here are some examples of taxable income in Singapore:

Type of IncomeDetails
Income From Employment
Employment incomeTypes of employment income and benefits-in-kind (to be computed by your employer):

-Salary, bonus, director's fee, commission and others
-Gains from the exercise of stock options
-Income received from overseas
-Pension
-Retirement benefits
-Retrenchment benefits
Income From Trade, Business, Profession or Vocation
Income received from overseasSome overseas income received in Singapore must be reported in your tax return
Income received in the form of Government GrantsFind out if these payouts will be auto-included in your tax return
-Special Employment Credit
-Wage Credit Payout
-Jobs Support Scheme
-COVID-19 related payouts
Income received in the form of virtual currenciesBusinesses that accept digital tokens are subject to normal Income Tax rules
Income From Property or Investments and Other Sources
Rent from propertyReport rental income and claim rental expenses
DividendsTaxable dividends must be reported in your tax return
InterestTaxable interests must be reported in your tax return
Gains from sale of property, shares and financial instrumentsTaxable gains must be reported in your tax return
Income From Other Sources
Annuity (recurring annual payments)
Taxable annuities must be reported in your tax return
Charge (alimony and maintenance payments)Check the taxability of alimony and maintenance payments in Singapore
Estate/Trust incomeEstate/trust income received in Singapore from an estate under administration or a trust is taxable
RoyaltyRoyalties are taxable though tax concessions are available
Withdrawals from Supplementary Retirement Scheme (SRS)Different tax rates apply depending on the year of your withdrawal

Source: IRAS

Non-Taxable Income Singapore

Non-taxable income includes:

  • Capital gains from stocks and property investments
  • Central Provident Fund (CPF) Life Payouts
  • National Service Housing, Medical and Education Award
  • Winnings from 4D, TOTO, horse betting and soccer betting.
Source: Facebook| Awesome Singapore

You can also refer to this IRAS table for a full list of what’s taxable and what’s not.

2) Singapore Tax Deductions

Deductions refer to any allowable expenses you incurred or approved donations you made during the year.

Some examples of deductions include:

  • Deductions on rental expenses
    • Can claim tax deductions on certain expenses related to rental income derived in Singapore (15% of the gross rent + mortgage interest on the loan taken to purchase the tenanted property)
  • Deductions on donations
    • Tax deductions of 2.5 times the qualifying donation amount
  • Deductions for self-employed, partnership, trade, business, profession or vocation
    • Can claim deductions for this category provided you satisfy the qualifying conditions
  • Deductions for employees
    • Can claim work from home (WFH) and other allowable employment expenses not reimbursed by your employer.

3) Singapore Tax Reliefs and Rebates

Usually given if you support certain government initiatives with “to promote specific social and economic objectives”.

Some common ones that most of you might qualify for include:

General Reliefs Available to ALL TaxpayersAmount of Tax Relief Each YearAdditional Reliefs Available to Married/ Divorced/ Widowed Taxpayers
Note: Eligibility is dependent on individual meeting the qualifying criteriaAvailable to Male and Female TaxpayersAvailable to Female Taxpayers
Course Fees ReliefUp to $5,500Qualifying/ Handicapped Child Relief

Spouse/ Handicapped Spouse Relief
Foreign Domestic Worker Levy Relief

Grandparent Caregiver Relief

Working Mother's Child Relief
CPF Cash Top Up
(You and your family member)
Up to $14,000
($7,000 for self, $7,000 for family members for YA 2022)
CPF Relief for Self-Employed
Tax relief for your Medisave and voluntary CPF contributions will be capped at the lower of:

-37% of your net trade income assessed

-CPF relief cap of $37,740

-Actual amount contributed by you
CPF Relief
(Compulsory & Voluntary Medisave Contributions)
The amount of tax relief given to the lowest of the following:

-Voluntary cash contribution directed specifically to Medisave Account or

-Annual CPF contribution cap for the year, less Mandatory Contribution (MC)* or

-Prevailing Basic Healthcare Sum(BHS)^, less the balance in Medisave Account before the voluntary cash contribution
Earned Income ReliefBelow 55: $1,000

55 to 59: $6,000

60 and above: $8,000
Earn Income Relief
(for handicapped person)
Below 55: $4,000

55 to 59: $10,000

60 and above: $12,000
Handicapped Brother/Sister Relief$5,500 for each handicapped sibling or sibling-in-law
Life Insurance Relief
(Your total contributions for the following in 2021 was less than $5,000:
a. compulsory employee CPF contribution
b. self-employed Medisave/voluntary CPF contribution
c. voluntary cash contribution to your Medisave account)
The lower of the:

Difference between $5,000 and your CPF contribution
OR
Up to 7% of the insured value of your own/your wife's life or the amount of insurance premiums paid
NSman ReliefSelf: $1,500 - $5,000

Wife: $750

Parent With NSman child: $750
Parent ReliefTaxpayer stays with dependant:
$9,000 per dependant

Taxpayer does not stay with dependant:
$5,500 per dependant
Handicapped Parent ReliefTaxpayer stays with dependant:
$14,000 per dependant

Taxpayer does not stay with dependant:
$10,000 per dependant
Supplementary Retirement Scheme (SRS) ReliefSingapore Citizens/Permanent Residents: $15,300

Foreigners: $35,700

Source: IRAS

Married couples and families will also enjoy tax reliefs and rebates like the Parenthood Tax Rebate (PTR) which can be shared based on an apportionment agreed by both of you.

You can also refer to this IRAS table for a full list of qualifying reliefs, expenses, donations to make sure you don’t miss out on any!

Singapore Income Tax Relief Ceiling 2022

Do note that there is a limit to the amount of tax relief that you can receive.

The income tax relief ceiling for YA 2022 is currently $80,000.

Personal Income Tax Rates for Residents in Singapore 2022

Once you’ve filed your income tax.

You’ll want to see how much you’re getting taxed.

As mentioned earlier, tax residents are taxed at progressive tax rates.

Here’re the personal income tax rates for residents from YA 2017 to YA 2023:

Singapore Tax Brackets: Tax Rates From YA 2017 – YA 2023

Chargeable IncomeIncome Tax Rate (%)Gross Tax Payable (S$)Total Income Tax in this income bracket (S$)
First $20,000
Next $10,000
0
2
0
200
200
First $30,000
Next $10,000
-
3.50
200
350
550
First $40,000
Next $40,000
-
7
550
2,800
3,350
First $80,000
Next $40,000
-
11.50
3,350
4,600
7,950
First $120,000
Next $40,000
-
15
7,950
6,000
13,950
First $160,000
Next $40,000
-
18
13,950
7,200
21,150
First $200,000
Next $40,000
-
19
21,150
7,600
28,750
First $240,000
Next $40,000
-
19.50
28,750
7,800
36,550
First $280,000
Next $40,000
-
20
36,550
8,000
44,550
First $320,000
In excess of $320,000
-
22
44,550-

As you can see from the Singapore tax brackets, the more you earn, the more you’re taxed.

Singapore Resident Tax Rates From YA 2024 Onwards

Note that from YA 2024 (2023 income assement period), the income tax rate for non-resident individuals (except on employment income and certain income taxable at reduced withholding rates) will be raised from 22% to 24%. This is to maintain parity between the income tax rate of non-resident individuals and the top marginal income tax rate of resident individuals.

Here is what it looks like:

Chargeable IncomeIncome Tax Rate (%)Gross Tax Payable ($)
First $20,000
Next $10,000
0
2
0
200
First $30,000
Next $10,000
-3.5200
350
First $40,000
Next $40,000
-7550
2,800
First $80,000
Next $40,000
-11.53,350
4,600
First $120,000
Next $40,000
-157,950
6,000
First $160,000
Next $40,000
-1813,950
7,200
First $200,000
Next $40,000
-1921,150
7,600
First $240,000
Next $40,000
-19.528,750
7,800
First $280,000
Next $40,000
-2036,550
8,000
First $320,000
Next $180,000
-2244,550
39,600
First $500,000
Next $500,000
-2384,150
115,000
First $1,000,000
In excess of $1,000,000
-24199,150

Source: IRAS

It’s also worth noting that Singapore boasts one of the lowest tiered tax rates in the world for a country with a pretty high standard of living.

Singapore Non-Resident Tax Rates 2022

Here are the personal income tax rates for non-residents:

Type of IncomeWithholding Tax RateWithholding tax rate
From YA 2017 to YA 2023From YA 2024 onwards
1. Remuneration including director's fees received by non-resident directors22%
See Tax Obligations for Non-Resident Directors
24%
2. Income received by non-resident professionals (e.g. consultants, trainers and coaches) for services performed in Singapore15% of gross income or 22% of net income
See Taxable Income of Non-Resident Professionals
15% of gross income or 24% of net income
3. Income received by non-resident public entertainers for services performed in Singapore10% concessionary rate up to 31 Mar 2022; 15% concessionary rate from 1 Apr 2022
See Tax for Non-Resident Public Entertainers
15% concessionary rate
4. SRS withdrawals received by non-Singapore SRS account holders*22%
See Withholding Tax on SRS
24%
5. Interest, commission, fee or other payment in connection with any loan or indebtedness**15% reduced final withholding tax rate (subject to conditions) or 22% if reduced withholding tax rate is not applicable15% reduced final withholding tax rate (subject to conditions) or 24% if reduced withholding tax rate is not applicable
6. Royalty or other lump sum payments for the use of movable properties**10% reduced final withholding tax rate (subject to conditions) or 22% if reduced withholding tax rate is not applicable10% reduced final withholding tax rate (subject to conditions) or 24% if reduced withholding tax rate is not applicable

Source: IRAS

^The same withholding tax rates also apply to the income derived by a Hindu Joint Family that is registered outside Singapore.
*With effect from 1 Jul 2014, the concessionary withholding tax rate of 15% will apply if the following conditions are met:
i. Cumulative amount withdrawn by the SRS account holder in the calendar year does not exceed $200,000; and
ii. The SRS account holder does not have any other income besides the SRS withdrawal(s) during the calendar year when the withdrawal(s) are made.
To enjoy this concession, the SRS account holder must declare that he fulfils the two conditions above using Form IR37B(1). The Form IR37B91) is obtainable from the SRS operator.
**The reduced withholding tax rate applies if the income is not derived from any trade, business, profession or vocation carried on or exercised by the non-resident individual in Singapore. If the income is derived from any trade, business, profession or vocation carried on or exercised by the non-resident individual in Singapore, then the withholding tax rate is 22% for YA 2017 to YA 2023 or 24% from YA 2024.

Non-residents may also use this Tax Calculator for Non-Resident Individuals sheet to estimate their tax payable.

Income Tax in Singapore FAQs (Frequently Asked Questions)

If this is your first time paying income tax, you probably have a lot of questions.

Source: SpongeBob SquarePants | Giphy

Here are some commonly asked ones.

Who Is Subjected to Income Tax?

Generally, income tax applies to people in Singapore who are tax residents and are deriving some form of income from:

Are My Investment Dividends Taxable?

This is a very common question that we always get from members of the Seedly community.

Non-Taxable Dividends

Generally, the following dividends are not taxable:

  1. Dividends paid on or after 1 Jan 2008 by a Singapore resident company under the one-tier corporate tax system except for co-operatives;
  2. Foreign dividends received in Singapore on or after 1 Jan 2004 by resident individuals. If an individual resident in Singapore receives foreign-sourced dividends through a partnership in Singapore, these dividends may be exempt from Singapore tax if certain conditions are met. For details, please refer to Tax Exemption for Foreign-Sourced Income;
  3. Income distribution from Real Estate Investment Trusts (REITs), except distributions derived by individuals through a partnership in Singapore, or from the carrying on of a trade, business or profession in REITs.

Taxable Dividends

The following dividends are subject to income tax:

  1. Dividends paid by co-operatives;
  2. Foreign-sourced dividends are derived by individuals through a partnership in Singapore. Conditions may apply. For more details, please refer to Tax Exemption for Foreign-Sourced Income;
  3. Income distribution from Real Estate Investment Trusts (REITs) derived by individuals through a partnership in Singapore, or from the carrying on of a trade, business or profession in REITs.

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