Mastering Local Taxation in Singapore
Understanding Singapore’s tax system is essential for optimising your income and ensuring compliance. Discover the rules on tax residency, progressive tax rates and deduction strategies.
Determine Your Tax Residency
In Singapore, your tax rate mainly depends on your residency status. Here are the key criteria applied by IRAS.
The 183-Day Rule
You are considered a tax resident if you stay or work in Singapore for at least 183 days during a calendar year. This presence includes weekends and short holidays taken from Singapore.
The 2-Year Rule
If you work over a period spanning two calendar years with a total presence exceeding 183 days, you may be considered a resident for both years, even if you did not reach 183 days in one of them.
Singapore Permanent Residents (PRs)
All Singapore Permanent Residents (SPRs) who ordinarily reside in Singapore are automatically taxed as tax residents, thereby benefiting from attractive progressive rates.
Implications Based on Length of Stay
Non-resident taxation is strictly structured to encourage long-term residence while remaining competitive for experts on short-term assignments.
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1
0 to 60 days
Employment income is tax-exempt (except for company directors, entertainers and professionals).
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2
61 to 182 days
Taxed at the flat rate of 15% or according to the residents’ progressive tax rates (whichever is higher).
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3
Directors & Professionals
A fixed rate of 22% to 24% applies to directors’ fees and other income, without the 60-day threshold applying.
Note: In 2026, the Inland Revenue Authority of Singapore (IRAS) strengthened its digital tracking systems. It is essential to keep an accurate record of your entries into and exits from the country.
2026 Income Tax Calculator
Estimate your annual tax liability as a tax resident in Singapore. This calculation is based on the current progressive tax rates, including the higher tax bands.
* For information purposes only. Consult an expert regarding your legal matters.
The Residents’ Progressive Tax Rates
One of Singapore’s main advantages is its limited progressivity. Rates remain among the lowest in the world for executives and entrepreneurs.
| Income band (SGD) | Rate (%) | Tax on this band |
|---|---|---|
| 0 - 20,000 | 0% | 0 |
| 20,001 - 30,000 | 2% | 200 |
| 30,001 - 40,000 | 3.5% | 350 |
| 40,001 - 80,000 | 7% | 2,800 |
| 80,001 - 120,000 | 11.5% | 4,600 |
| 120,001 - 160,000 | 15% | 6,000 |
| 160,001 - 200,000 | 18% | 7,200 |
| 200,001 - 240,000 | 19% | 7,600 |
| 240,001 - 280,000 | 19.5% | 7,800 |
| 280,001 - 320,000 | 20% | 8,000 |
| Above 320,000 | 22% à 24% | Progressive |
For more details on the cost of living associated with these incomes, see our Singapore budget guide.
Tax Planning and Deductions
Charitable Donations
Singapore encourages philanthropy through an exceptional scheme: for every dollar donated to an Institution of Public Character (IPC), you receive a tax deduction of 250% of the donation amount. This is one of the most powerful ways to reduce your taxable income.
Parenthood & Family
- Qualifying Child Relief (QCR)
- Working Mother’s Child Relief (WMCR)
- Parenthood Tax Rebate
Supplementary Retirement Scheme (SRS)
For foreigners, the SRS is an alternative to CPF (reserved for citizens/PRs). Contributions to your SRS account are deductible from your taxable income up to an annual limit (approximately 35 700 SGD in 2026).
Open an SRS account through our partner banks.
Working from Home & Training Expenses
If your employer does not reimburse certain costs related to working from home (electricity, internet), a flat-rate deduction may be claimed. Professional training expenses aimed at acquiring new skills are also deductible up to 5 500 SGD.
Timeline and Obligations
Don’t miss any steps to remain compliant with IRAS. Administrative rigour is a core value in Singapore.
Tax Period
From 1 January to 31 December of the previous year (Year of Assessment - YA).
January - March: Preparation
Employers submit salary details directly to IRAS through the Auto-Inclusion Scheme (AIS). If your company participates in AIS, your income will be pre-filled on your tax return. Check your local news for any changes to the regulations.
1 March - 18 April: Filing (e-Filing)
This is the statutory period for submitting your tax return through the myTax Portal. Singpass must be used. Even if you have not received a notification from IRAS, you must file if your annual income exceeds 22 000 SGD.
May - September: Notice of Assessment (NOA)
You receive your NOA (Notice of Assessment). You have 30 days to pay or report any discrepancy. Payment is generally made by GIRO (monthly instalments) or by a single bank transfer.
Permanent Departure: Tax Clearance
Before leaving Singapore or changing employers, you must complete the Tax Clearance process (Form IR21). Your employer will withhold your final salary until IRAS confirms that all your taxes have been paid.
Entrepreneurs & Companies Focus
If you are considering setting up a business in Singapore, you should know that the corporate tax regime is one of the most competitive in the world.
Single Tax Rate
The standard rate on corporate profits is set at 17%, but numerous exemptions apply to startups during their first 3 years.
Goods and Services Tax
GST (equivalent to VAT) is 9% in 2026. Registration is only compulsory above SGD 1 million in annual turnover.
Frequently Asked Questions About Tax
Does Singapore tax worldwide income?
Is there a tax on capital gains?
What about benefits in kind (Housing, Car)?
Is there a tax treaty with France?
How do I declare my rental income?
Is CPF compulsory for expatriates?
What are the penalties for late filing?
Can I deduct my healthcare expenses?
What is the NOR scheme?
How do I obtain a tax residence certificate?
Need personalised guidance?
Tax can be complex, especially during your first year. Join our community to exchange advice with other expatriates.