Singapore is famous for its personal income tax. Indeed, it is lower than in other Western countries. Singapore does not tax capital gain in order to foster local and foreign investments. The authority dealing with taxes in Singapore is called the IRAS (Inland Revenue Authority of Singapore)
Note that the IRAS website is very well documented. If you have any question make sure to visit it.
The amount of income tax you’ll pay depends on your status. 3 options here:
- You live and work at least 183 days a year in Singapore, then you’ll be taxed at progressive rates on your income.
- You spent between 61 and 182 days working in the country. You’ll be either taxed at 15% or progressive rate, whichever gives the highest tax amount.
- You spent less than 60 in Singapore, your income is exempted from taxes.
Here are the detailed progressive rates:
Note that if you live in Singapore but receive income from a source abroad, you will not be taxed on it.
Taxpayers have to fil in their tax return each year by April 15th. It means that as an expat, you’ll start paying taxes around 18 months after arriving in Singapore.
Annual property taxes depend on the Annual Value (AV) of the property and on the Property tax rate that applies to you. The Annual Value of a property corresponds to its gross annual rent if it was rented. This annual rent is based on the market rentals of similar property. Your property tax rate varies if you live in your property or not.
Here are more details about the “Owner-Occupier Tax” rates and “Non-Owner Occupied Tax” rates.
Good and Services Tax (GST)
Singapore GST is similar to Value Added Tax (VAT) in other countries. GST current rate is 7%.