Personal Taxation

In general, individuals are liable to Singapore income tax only on income accruing in or derived from Singapore.

Various categories of personal investment income from qualifying unit trusts, real estate investment trusts, bonds and bank deposits are exempt from tax.

Under the law, an individual’s business income is determined in the same way and subject to the same deductions as a corporation. However, it is usually more difficult for an individual to claim certain business deductions.

Other Personal Taxation Information

See the topics about Removing of Section 40 Relief, Removing of Tax Concession on Home Leave Passages for Expatriate Employees and Introducing a Cap of $80,000 on Personal Income Tax Reliefs here.

Tax Rates

The total income of a resident individual is taxed on a sliding scale as follows:

Personal Deductions

A resident individual is entitled to various reliefs for earned income, spouse, children and dependent parents and siblings.

Not Ordinarily Resident (NOR) Scheme

Where an individual has not been a tax resident in Singapore for the 3 immediate preceding years, he/she may qualify for the Not Ordinarily Resident (NOR) status for 5 consecutive years from the year that they are a tax resident of Singapore.

Tax Residency

An individual is a tax resident in Singapore if he/she is physically present or exercises employment in Singapore for 183 days or more during the calendar year preceding the YA. This rule is applied on a calendar year basis.