This article provides insight into income and corporate tax rates in Singapore.
The enforcement and collection of taxes is handled by the Inland Revenue Authority of Singapore (IRAS), which acts as an agent of the government and represents Singapore internationally on all matters related to taxation. According to the IRAS, income tax rates in Singapore are amongst the lowest in the world.
The highest rate of personal taxation, or income tax, is only 20%. The corporate tax rate is currently 18%, but has never been above 20%. For example, in 2005 residents earning between S$30,000 and S$40,000 were in an income tax bracket of six percent. As a non-resident, legally defined as a person living or working in Singapore for less than 183 days, your employment income is taxed 15% or the resident rate, whichever is higher.
Only income earned in Singapore is taxable, but non-residents are not eligible for personal relief. For residents, tax rebates and reliefs are available and given in acknowledgement for a person’s efforts. These rebates are given to promote social objectives including family formation, training, retraining, and upgrading of skills as well as reliefs given to those serving National Service.