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.

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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.

Employment Income

Employment income is considered to be derived from Singapore if the duties are exercised here.

Not Ordinarily Resident (NOR) Scheme

The NOR scheme has ceased, as announced in Budget 2019. The last NOR status granted will be valid from YA 2020 to YA 2024. Individuals who have qualified for the NOR status will continue to enjoy NOR tax concessions until their NOR status expires, if they continue to meet the conditions of the concessions.

Personal Deductions

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

Enhancing of Parent and Handicapped Parent Reliefs

Learn more about the Parent and Handicapped Parent Reliefs below.

Enhancing of Handicapped Dependant Reliefs

You may claim the following reliefs for the Year of Assessment 2023 for your handicapped spouse, sibling and child.

Tax Rates

The total income of a resident individual is taxed on a sliding scale. To achieve greater progressivity, the top marginal personal income tax rate in Singapore will be increased with effect from YA 2024.

Corporate Taxation

A corporation is generally liable for Singapore income tax on all income accruing in, or derived from Singapore, as well as foreign sourced income remitted or deemed remitted into the country.

Tax - A Matter of Moral or Rule of Law?

In the course of running a business, having to pay taxes is a testimony that one has done well in the business. That said, it has always been a taxpayer’s right to arrange its business within the framework of the law to minimize the tax burden. Some tax payers have taken this to a great distance and they have successfully created and implemented elaborate schemes with the use of entities in exotic...