Singapore Tax 2021
Last partial update, September 2021.Individual Income Tax: Singapore's individual income tax rates for 2021 are progressive, from 2% to 22%.
Personal annual tax rates 2021 (SGD, Singapore Dollar)
| Income (Singapore DOLLAR) | % |
|---|---|
| 1-20,000 | - |
| 20,001-30,000 | 2 |
| 30,001-40,000 | 3.5 |
| 40,001-80,000 | 7 |
| 80,001-120,000 | 11.5 |
| 120,001 -160,000 | 15 |
| 160,001-200,000 | 18 |
| 200,001-240,000 | 19 |
| 240,001-280,000 | 19.5 |
| 280,001-320-000 | 20 |
| Over 320,001 | 22 |
Non-residents pay the higher of15% or general rates on employment income and 22% on director's fees, consulting fees and other income.
Corporate Tax: Singapore corporate tax rate for 2021 is 17%.
There are reductions for the first SGD 200,000.
75% of the first SGD 10,000 and 50% of the next SGD 190,000 are tax exempt.
Capital Gains: There is no capital gain tax for both companies and individuals.
Dividend income is tax exempt by the recipients.
Singapore Residence
A company is resident when having its actual management in Singapore.Individuals are resident when generally living in Singapore.
Foreigners are residents if living in Singapore 183 days or more in a calendar year.
The Singapore income tax is imposed on a territorial basis.
Singapore companies and individuals pay income tax only on Singapore source income.
Income derived outside of Singapore is tax exempt.
Singapore Business Deductions
- Losses are carried forward indefinitely. There is a carry back for one year up to $ 100,000.
- Depreciation is deducted according to the type of the fixed asset.
The depreciation rate for hardware, software and automation equipment is 100% (one year).Fixed asset of up to $ 1,000 can be depreciated in one year too. - Vehicles and other fixed assets are depreciated 33.3% per year.
- Research &development ,R&D ,in the years 2019-2025 are 250% tax deductible subject to terms.
- There is no company consolidation for tax purpose.
Under certain term companies from the same group can offset within the group unutilized loss and capital allowances. - Thin capitalisation rules are not in effect in Singapore.
Singapore Tax Credits and Deductions (Singapore dollar)
For Singapore residents there are tax credits and deductions.Courses fees relief- up to $5,500 per year.
For handicapped people a relief of $4,000-$12,000 depending on age.
Relief for handicapped parent/grandparent $9,000-$14,000 staying/non staying parent/grandparent.
Handicapped child relief $7,500 per child.
Handicapped spouse relief $5,500.
Medical expenses - not deductible.
Singapore Tax Withholding Rates
In Singapore tax is deducted at source from the following payments to nonresident companies:Dividend- 0%.
Interest- 15%.
Royalties- 10%.
Branch remittance to head office- 0%.
Singapore Social Security CPF (Central Provident Fund)
The contributions by the employer and the employee to CPF, central provident funds are subject to to ceiling defined by law.Employer: 17% of the gross salary.
Employee: 20% of the gross salary.
More info www.iras.gov.sg
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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