Singapore Individual Tax FAQs

This guide contains frequently asked questions and answers on personal taxes in Singapore. To learn about corporate taxes, see Singapore Business Tax Guide. For an overall understanding of Singapore's tax system, see Singapore Tax System.

The information provided here is for general guidance only and not meant to replace professional advice.

What is the personal income tax rate in Singapore?

Singapore follows a progressive tax rate, for tax residents, starting at 0% and ending at 20% above S$320,000. Tax residents are Singaporeans, SPRs, foreigners who have stayed/worked in Singapore for 183 days or more. For non-residents (a foreigner who stayed or worked in Singapore for less than 183 days) your employment income is taxed at 15% or resident rate, whichever gives rise to higher tax. Furthermore, all resident individual tax payers will be given a one-off income tax rebate of 20%, upto a cap of S$2,000, for the tax payable for YA 2009. For more details, see Singapore Income Tax for Individuals.

I am working for a Singapore company but was physically present in Singapore for about 100 days only. I spent rest of the time traveling overseas on business trips. Will I be taxed as a resident or non-resident in Singapore?

You will be taxed as a resident in Singapore since your travel is incidental to your Singapore employment. That is, as part of your work here, you need to travel overseas.

If I spend less than 183 days in Singapore, can I still choose to be taxed as Singapore resident by virtue of my employment with the Singapore company?

Whether you will be taxed as a resident or non-resident, this will be determined by the Inland Revenue Authority of Singapore on a case-by-case basis, depending on the nature of your employment. If for instance you are employed by a Singapore company as a sales consultant and as a result of frequent business trips you have spent less than 183 days here, you will still be taxed as a resident. However, if you are posted on an offshore project for several months, as a result of which you have spent less than 183 days in Singapore, you will be taxed as a non-resident. 

If I live in Singapore but provide consulting services to a foreign company with no office in Singapore, is my income taxable?

Yes. You will be taxed on your income (at resident rates) earned for the period you rendered consulting services in Singapore even if your employer is not a resident in Singapore or your income is not paid in Singapore.

Do I or my employer need to contribute to Central Provident Fund if I am on employment pass?

CPF contributions are not allowed for foreigners. Both the employer’s and employee’s contributions for foreign employees on Employment Pass, Professional Visit Pass or Work Permit will be rejected.

I am on employment pass and working for a Singapore company. Although I have been employed by my Singapore employer for the whole year, I was physically present in Singapore for only 3 months. For rest of the 9 months I was deputed by the employer for a project offshore. Do I pay Singapore taxes for the whole year or only for 3 months while I was physically in Singapore?

In this case, you will likely be regarded as a non-resident and only be taxed on income earned in Singapore. You will not be entitled to tax reliefs and your employment income will be taxed at a flat rate of 15% or the progressive resident rates depending on which results in a higher tax.

What is the annual due date for filing personal tax return in Singapore?

Tax filing due date for individuals is April 15 of each year. Income tax is assessed based on a preceding year basis. You will be subject to penalties for filing late or not filing.

If my company pays for my accommodations, will there be tax consequences for me?

Yes. This benefit comes under the umbrella of benefits-in-kind which refers to benefits received by employees, from the employer, in non-cash form. However many of these benefits are taxed at a reduced rate. 

If my company pays for my local transport expenses, will there be tax consequences for me?

Reimbursements of transport expenses incurred for discharging official duties including travelling from office/home to meet a client, between home/office and external venues for business or from home/office to airport or working overtime are not taxable.

For mileage on private cars - Reimbursements on private mileage are taxable. Reimbursements on mileage incurred for official trips (e.g. travelling from office/home to meet a client, between home/office and external venues for business or from home/office to airport) are not taxable.

A fixed monthly transport allowance is taxable.

If my company pays for my overseas travel expenses, will there be tax consequences for me?

Reimbursement of overseas travel expenses for business purposes, (e.g. meeting overseas clients, attending seminars, conferences and training) are not taxable. This is because a reimbursement is merely a payment back to you for expenses incurred on behalf of your employer.

I live overseas and get paid by a Singapore company as a consultant. Do I have to pay any taxes in Singapore? Does my Singapore employer have to deduct any withholding tax from my consulting payment?

Generally, if an employee is contracted to be stationed outside Singapore to render his services, his salary is not taxable in Singapore, as the income is sourced outside Singapore. This is irrespective of the fact that his contract of employment may be concluded in Singapore or his salary is paid into a Singapore bank account. For services or consulting done outside Singapore, there is no withholding tax. Withholding tax is applicable only for income from services provided or work done in Singapore.

In addition to my salary, I also received dividend payment from my Singapore company. Do I need to pay taxes on my dividend income?

The following types of dividends are exempt from taxation in Singapore.

• Dividends from Singapore companies to its shareholders.
• Foreign dividends received in Singapore. This excludes foreign source income received through partnerships in Singapore.
• Income distributions from unit trusts and real estate investment trusts (REIT), that are authorised under Section 286 of the Securities and Futures Act (excludes distributions out of franked dividends).

Does Singapore tax on worldwide income for its residents?

No. Taxation on worldwide income for Singapore residents depends on the source of income.

Income is liable to Singapore tax if the source of the income is in Singapore. In other words, your income was accrued in or derived from Singapore, as a result of employment exercised in Singapore, even though your employer is a non resident/overseas company.

However, income sourced overseas is tax exempt. In other words, your income was derived from outside Singapore, as a result of employment exercised outside Singapore.

There are certain circumstances under which overseas income is taxable:

• It is received in Singapore through partnerships in Singapore.
• Your overseas employment is incidental to your Singapore employment. That is, as part of your work here, you need to travel overseas.
• You are employed outside Singapore on behalf of Government of Singapore.

Both I and my wife are working in Singapore? From the taxation point of view, is it better for us to file personal tax return individually or jointly?

Singapore does not allow joint filing of personal income tax returns effective 2005.

Are mortgage payments tax deductible in Singapore?

Monthly instalment repayment of housing loan or mortgage is not a tax deductible expense. However, interest paid on the loan or mortgage falls under the umbrella of both Rental Expenses and Net Annual Value (of your property) expenses and can be deducted from your rental income or annual value of your property in Singapore, as the case may be.

What is the rate of property tax on residential property in Singapore? Is property tax on my residential property, tax deductible?

Currently, owner-occupied residential properties are taxed at a concessionary 4% rate while wholly rented out residential properties are subject to a property tax rate of 10%.  

With effect from January 2011, a 3-tier tax rate will apply for owner occupied residential property. A tax rate of 0% for the first S$6000 of AV; 4% for the next S$59,000 of AV; and 6% for the balance of AV in excess of S$65,000. Wholly rented out residential properties and other properties will continue to be subject to 10% property tax. 

The Annual Value (AV) of a property is the estimated annual rent of the property (determined by the tax department every year, by analysing rents of comparable properties), excluding the rent for furniture, fittings and service charge. 

Property tax is a tax deductible expense from your rental income or annual value of your property.

Are my auto, life, and medical insurance premiums tax deductible in Singapore?

Auto insurance premiums are not tax deductible.

Medical premiums paid by yourself are not tax deductible. Group medical insurance premiums are tax deductible only when paid by the employer as a benefit of employment from the Year of Assessment 2008 onwards. 

Life insurance premiums for you and your wife, whether paid by you or your employer, are tax deductible only if your CPF contributions are less than S$5,000 for the assessment year.

What is the taxation policy on rental income from residential property?

Rent received from the letting of property in Singapore is subject to income tax. Your rental income includes rent of the premises, maintenance, furniture and fittings. After deductions for allowable expenses (such as property tax), the net amount is taxable.

Gross rent - Total allowable expenses = Net taxable rent.

If I pay course fees from my own pocket, are they tax deductible?

Yes, you can claim course fees relief if you are or have been gainfully employed and satisfy any of the following conditions:

1. The course, seminar or conference relates to your trade, business, profession, vocation or employment;
2. The course, seminar or conference does not relate to your trade, profession, vocation or employment at the time they were taken but are now relevant due to a career change;
3. Course, seminar or conference leads to an approved academic, professional or vocational qualification.

You can claim the actual course fees paid, up to a maximum of S$3,500 each year, regardless of the number of courses, seminars or conferences you attended. According to the 2010 Budget, the course fees relief will be increased from S$3,500 to S$5,500 with effect from YA 2011. The course fees you may claim include registration fees or enrolment fees, examination fees, tuition fees and aptitude test fees (for computer courses). You cannot claim living expenses, expenses for textbooks or traveling.

I am a Singapore Permanent Resident. Are my CPF contributions (both mine and my employer's contributions) considered income to me? If so, what is the taxation policy on it?

Yes, CPF contributions (both by you and your employer) are considered income. You can claim CPF relief on compulsory employee CPF contributions only. Employer contributions are taxable. The amount you can claim as CPF relief depends on the amount you have contributed towards CPF. The CPF contributions are subject to certain limits under the CPF Act.

You cannot claim relief on:

• Voluntary contributions that you made in excess of the compulsory contributions under CPF Act.
• Voluntary contributions made while you are seconded or posted overseas for work.

Are our maid expenses, tax deductible?

Expenses incurred for the maid are not tax deductible.

Only foreign maid levy (normal rate of S$265 or concessional rate of S$170) is tax deductible, subject to certain conditions.

You may only claim this relief if in the previous year, you are a

• Married woman who lived with your husband, OR
• Married woman and your husband was not resident in Singapore, OR
• Woman separated from your husband, divorced or widowed and had children who lived with you and on whom you could claim child relief.

Please note that single or male taxpayers are not eligible for this relief.

This relief can only be used to offset against your earned income (i.e. income from employment, pension, trade, business, profession or vocation).

I am a non-resident director of a Singapore company. The company pays me salary and director's fee. What is the taxation policy on this?

Generally, directors' remuneration derived from a company resident in Singapore is taxable in Singapore regardless of your physical presence in Singapore, as the income was derived in Singapore. Taxable income refers to both cash and non-cash payments and includes salary, bonus, director's fees, accommodation provided etc.

Your employer must:

• Withhold tax at 20% (with effect from Year of Assessment 2005) of all payments made to you; and
• File Form IR37 and pay the withholding tax by the 15th of the month following the date of payment to you.

As your employer has withheld tax at source and filed IR37, you need not file a separate tax return for the director's remuneration. However, if you have been issued a tax return, please declare all sources of income derived from Singapore including director's remuneration and enter the tax withheld under the field "Tax deducted at source".

If I incurred gains on my stock investments, are they taxable?

As an employee, you may receive either share options as a result of any office held by you (e.g. a director or an external auditor) or you may own or purchase shares in the company or in its parent company using the share awards and other similar forms of employee share purchase plans. Gains from such benefits are taxable.

Profits from the buying and selling of shares or other financial instruments on your own account are viewed as personal investments and are not subject to tax as they are Capital gains. However, to determine whether an individual is trading, factors such as the frequency and volume of transactions, the interval between the purchase and sale, and the manner of financing the purchase of shares, will be taken into consideration.

If I incurred losses on my stock investments, are they tax deductible?

Losses on any personal investments like stocks are not tax deductible. Capital loss expenses are not allowed as deductions.