Singapore (SG)
Singapore is a city-state island nation at the southern tip of the Malay Peninsula and one of the world's foremost global cities.
Tax & Payslip Guide
Understanding your taxes in Singapore — tax year Calendar year — 1 January to 31 December. Tax is assessed for the Year of Assessment (YA), which refers to income earned in the preceding calendar year (e.g. YA 2026 assesses income earned in 2025)..
📊 Income Tax Brackets
| Income from | Income to | Rate | Notes |
|---|---|---|---|
| 0 | 20,000 | 0% | No income tax on first S$20,000 of chargeable income. This makes Singapore tax-free for very low earners. |
| 20,001 | 30,000 | 2% | S$200 tax on this band (2% of S$10,000). |
| 30,001 | 40,000 | 3.5% | S$350 tax on this band. |
| 40,001 | 80,000 | 7% | S$2,800 tax on this band. The 7% bracket covers a wide income range. |
| 80,001 | 120,000 | 11.5% | S$4,600 tax on this band. |
| 120,001 | 160,000 | 15% | S$6,000 tax on this band. |
| 160,001 | 200,000 | 18% | S$7,200 tax on this band. |
| 200,001 | 240,000 | 19% | S$7,600 tax on this band. |
| 240,001 | 280,000 | 19.5% | S$7,800 tax on this band. |
| 280,001 | 320,000 | 20% | S$8,000 tax on this band. |
| 320,001 | 500,000 | 22% | S$39,600 tax on this band (22% on income S$320,001–S$500,000). |
| 500,001 | 1,000,000 | 23% | S$115,000 tax on this band (23% on income S$500,001–S$1,000,000). |
| 1,000,001 | ∞ | 24% | Top marginal rate of 24% on chargeable income above S$1,000,000 (introduced for Year of Assessment 2024 onwards). This is exceptionally competitive vs comparable financial centres — Hong Kong top rate 17%, UK 45%, USA federal 37%. Singapore has no capital gains tax, no inheritance tax, and no dividend tax — making it highly attractive for high-net-worth individuals. |
🏛️ Social Contributions
CPF is Singapore's mandatory social security and savings scheme for citizens and permanent residents ONLY. Foreign nationals on Employment Passes, S Passes, or other non-PR work passes do NOT contribute to CPF and their employers do NOT contribute on their behalf. CPF contributions are split across three accounts: Ordinary Account (OA) — housing, education, insurance; Special Account (SA) — retirement; MediSave Account (MA) — healthcare. CPF contribution rates reduce at age 55+ (employee contributions reduce progressively; employer contributions also reduce). From 2026: age ≤55 — employee 20% + employer 17% = 37% total; age 55–60 — employee 16% + employer 15% = 31%; age 60–65 — employee 10.5% + employer 12% = 22.5%; age 65–70 — employee 7.5% + employer 9% = 16.5%; age 70+ — employee 5% + employer 7.5% = 12.5%. Maximum monthly CPF contribution (ordinary wages at S$8,000 ceiling, age ≤55): employee S$1,600; employer S$1,360.
The Skills Development Levy is paid by employers (not employees) and contributes to the SkillsFuture Fund for national workforce training and upskilling programmes. SDL applies to all employees (citizens, PRs, and foreigners on work passes). It is not deducted from employees' salaries — it is an additional employer cost on top of salary. Maximum SDL per employee per month: S$11.50 (0.25% × S$4,600). Collected by IRAS together with CPF contributions.
MediShield Life is Singapore's national health insurance scheme — mandatory for all Singapore citizens and PRs. Premiums are paid from the CPF MediSave account and do not reduce take-home pay directly. Foreign nationals on work passes are NOT covered by MediShield Life and do not pay the premium. For those who have integrated Shield Plans (IP) through private insurers, the IP premium is split — the MediShield Life component from MediSave; the IP rider component paid from personal funds.
🛒 VAT Rates
Exempt from GST (not zero-rated — no input tax credit): financial services (loans, insurance, share trading — except fund management), residential rental, and sale of bare land. The key distinction: zero-rated businesses can reclaim input GST; exempt businesses cannot. Most expat daily life transactions are at 9% GST — retail, restaurants (note: the 10% service charge is separate from GST), groceries (except basic food items which are sometimes confused — basic food staples are standard-rated at 9% in Singapore, unlike the EU zero-rate on food). GST vouchers are paid quarterly to lower-income households (citizens and PRs only) to offset the regressive impact of GST.
🧾 Sample Payslip Decoder
🌍 Special Expat Tax Rules
Singapore has no special expat tax regime or non-domicile provisions. Tax residents (physically present or exercising employment in Singapore for 183+ days in the calendar year) are taxed on Singapore-source income only — no worldwide taxation for most individuals. Key features for expats: (1) No capital gains tax — gains on shares, property, and other investments are not taxed, regardless of residency status. (2) No inheritance tax (estate duty was abolished in 2008). (3) No tax on dividends received by individuals — one-tier corporate tax system. (4) Employment income is taxed on a progressive basis — see brackets above; the effective rate on S$200,000 income is approximately 15%. (5) Tax residency rules: if you arrive mid-year, only Singapore income from arrival date is assessable; if you are in Singapore for less than 60 days, income for those days is exempt. (6) If you leave mid-year: IRAS requires an IR21 tax clearance to be filed by your employer 1 month before you leave permanently or for 3+ months — final tax assessment is processed and any refund/liability settled before departure; your employer withholds your final salary pending clearance. (7) Not-ordinarily-resident (NOR) scheme: allows qualifying expats to be taxed only on the portion of their employment income for time spent in Singapore — applicable to those who have NOT been Singapore tax resident for the preceding 3 years; lasts for 5 consecutive YAs. Check IRAS for NOR eligibility.
📋 Double Tax Treaties
Singapore has comprehensive Double Taxation Agreements (DTAs) with 90+ countries, including USA, UK, Australia, Germany, France, Japan, China, India, Canada, Switzerland, Netherlands, Indonesia, Malaysia, Thailand, Philippines, and most OECD nations. DTAs typically cover: employment income (which country has taxing rights), dividends, interest, royalties, and pensions. Singapore's treaty network is one of the most extensive in Asia and significantly reduces withholding taxes on cross-border income. Withholding tax rates for non-residents: dividends 0% (Singapore exempts dividends at source); interest 15% (reduced by treaty); royalties 10% (reduced by treaty); rental income from Singapore property 15%. Specific note: the Singapore-USA tax treaty was updated in 2023 — US persons in Singapore are subject to both IRAS and IRS obligations but the treaty prevents double taxation. Consult IRAS's treaty page or a Singapore-registered tax advisor for specific treaty provisions.
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