A Guide to Singapore Individual Income Tax

A Guide to Singapore Personal Tax

Richmond Corporate Advisory Pte. Ltd

COPYRIGHT © 2016 · RICHMOND CORPORATE ADVISORY PTE. LTD. (UEN 200815839Z), 16 RAFFLES QUAY #41-01 SINGAPORE 048581. TEL:64230777 ALL RIGHTS RESERVED.

Understanding the BasicsPersonal Tax: The Terms for Residents


You are a tax resident if you:

• Have spent at least 183 days in a year in the city-state.

• Have spent at least 183 days in the city-state for a continuous period of over two years.

• Have stayed in Singapore for three consecutive years.


https://www.iras.gov.sg/irashome/Individuals/Locals/Learning-the-basics/Basic-Guide-for-New-Taxpayers/

What is Taxable?All income earned in the city-state are subject to tax.


https://www.iras.gov.sg/irashome/Businesses/Companies/Working-out-Corporate-Income-Taxes/Taxable-and-Non-taxable-Income/

For income received abroad, profits are considered to be taxable under the following

terms from Section 10 (25) of the Income Tax Act:

• If the profit is remitted, brought, or transmitted into Singapore.

• If the profit is used to pay debts gained through trade or business carried in Singapore.

• If the profit is used as payment for any moveable property purchased in Singapore (materials or equipment used to a taxpayer’s business).


https://www.iras.gov.sg/irashome/Businesses/Companies/Working-out-Corporate-Income-Taxes/Taxable-and-Non-taxable-Income/

In Focus: Singapore’s Tax Rates for

ResidentsSingapore’s residents

are charged with graduated rates that range from 0 to 20 percent. Check the

table for the income tax rate for specific salary

brackets. Tax Rate Before 2017


In 2017, Singapore is set to increase its

taxes for those in the higher income

bracket. Only those earning more than

$160,000 a year will be affected by this

hike. Here is the new table which will be

effective come 2017.


https://sg.finance.yahoo.com/news/highest-income-tax-rates-world-160000035.html

From Filing to Managing: How To Be Organised With Your Personal Taxes


Types of Filing for Personal Taxes

• E-Filing

• Paper Filing

• No-Filing Service (NFS)


Payment Options• Giro

• Internet Banking

• Cash/NETS

• Cheque/Cashier’s Order

• Telegraphic Transfer


Managing Your Taxes

• To properly manage your tax payments, you can check the myTax Portal to get the electronic copy of your bill or see if your payment has been properly filed by the IRAS.


https://mytax.iras.gov.sg/ESVWeb/default.aspx

Personal Tax: Everything Non-Residents Should Know


Who are considered as non-residents in Singapore jurisdiction?

• Individuals who have worked in Singapore for 61 to 182 days.

• Individuals who worked for 60 days or less. Short-term employments are exempted from taxes. However, it does not apply if the individual is a professional, a director, or a public entertainer.


Which aspects of non-residents’ income are taxable?• Director’s Remuneration

• Non-resident professionals

• Public entertainers

• Foreign property owners

• Interest and royalties


Non-resident Tax Rates: A Summary

• For non-residents, a flat tax rate of 15% or the progressive resident tax rates, whichever is higher, is charged from their profits. Consultation fees and Director’s fees are charged a higher amount, however, at a rate of 20%.


Non-resident Tax Rates: A Summary

• Come 2017, the taxation for non-residents (except those who have reduced final withholding tax rates) will be increased to 22%. The change is decided upon by the government to keep the parity between the taxes of the non-residents and the top marginal rates of the residents.


Managing Your Taxes as a Non-Resident

• Non-residents need to file Form M which can be requested from the IRAS. This form is only available in hardcopy so it is highly suggested to contact the tax-managing body if it isn’t received between February and March of every year.

• For payment options, non-residents can pay their taxes using the same channels available for residents.


https://www.iras.gov.sg/IRASHome/Individuals/Foreigners/Filing-your-taxes/How-to-File-Tax/Filing-Form-M/

https://www.iras.gov.sg/irashome/Individuals/Foreigners/Paying-your-taxes-Claiming-refunds/How-to-Pay-Tax/

Deducting the Numbers: How To Make Your Taxes

More Friendly To Your Pocket


Below is a list of Tax Reliefs for Resident Tax Payers

• Employee Deduction

• Rental Expenses Deductions

• Donations Deductions

• Angel Investors Tax Deduction Scheme

• Rebates and reliefs

• Personal Income Tax Relief CapCOPYRIGHT © 2016 · RICHMOND CORPORATE ADVISORY PTE. LTD. (UEN 200815839Z), 16 RAFFLES QUAY #41-01 SINGAPORE 048581. TEL:64230777

ALL RIGHTS RESERVED.

Below is a list of Tax Reliefs for Resident Tax Payers

• Costs Incurred by Sole Proprietors, Self-employed individuals, or Partners

• Business expenses

• Capital Expenditure incurred on renovation or refurbishment

• Productivity and Innovation Credit

• Capital Allowances on fixed assets

• R&D Expenditure

• Medical Expenses

• Land Intensification Allowance

• Unabsorbed capital allowances and Business making losses

• Expenses incurred before start of business


Need assistance in your individual income tax filing? Richmond Corporate Advisory Pte. Ltd. is a leading corporate solutions provider offering expert company formation, accounting, secretarial, bookkeeping, and tax ation services to small and medium-sized enterprises in Singapore. Visit www.rbcrca.com.sg to learn more our services or connect through these channels:

Facebook: https://www.facebook.com/richmondcorporateadvisory/Twitter: https://twitter.com/rbcrca LinkedIn: https://www.linkedin.com/company/richmond-corporate-advisory-pte-ltd Pinterest: https://www.pinterest.com/rbcrca/

“For more information on Singapore Individual Tax Filing, visit:

Inland Revenue Authority of Singapore (www.iras.gov.sg)


http://www.rbcrca.com.sg

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A Guide to Singapore Individual Income Tax

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