Personal Income Tax Services
Overview
Employees, self-employed persons, sole proprietorships, partnerships, and other individuals who may be Singapore Citizens, Singapore Permanent Residents (SPR), and foreigners should file their individual income tax returns to the Inland Revenue Authority of Singapore (IRAS).
An individual income tax (or personal income tax) is charged on employment income such as salary, bonus, director’s fee, commission, allowances, investments, or other forms of income an individual or household earns. Singapore imposes a progressive income tax where rates increase with income.
All income earned in or derived from Singapore is chargeable to income tax. Generally, overseas income received in Singapore is not taxable, except in some circumstances.
Tax residency
Income tax rates depend on an individual's tax residency status. You will be treated as a tax resident for a particular Year of Assessment (YA) if you are a:
- Singapore Citizen or Singapore Permanent Resident who resides in Singapore except for temporary absences; or
- A foreigner who has stayed/worked in Singapore (e.g. Holders of EntrePass, Employment Pass, S Pass, Work Permit and other relevant passes)
- For at least 183 days in the previous calendar year; or
- Continuously for 3 consecutive years, even if the period of stay in Singapore may be less than 183 days in the first year and/or the third year; or
- A foreigner who has worked in Singapore for a continuous period straddling 2 calendar years and the total period of stay is at least 183 days*. This applies to employees who entered Singapore but excludes directors of a company, public entertainers, or professionals.
If you are not any of the above, then you are considered a non-tax resident.
Tax Rates
Singapore imposes progressive income tax rates for resident taxpayers where tax rates increase with income being 22% as the highest rate.
Individual Income Tax Filing Obligations
There are 2 stages to fulfilling your income tax obligations; filing your income tax and paying your tax bill.
1. Filing your Income Tax
Individuals are taxed based on the income earned in the preceding calendar year. Filing for the Year of Assessment begins on 1 Mar and you must file your Income Tax Return by 18 Apr.
Generally, there are 2 groups of taxpayers:
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those who are required to file an Income Tax Return; and
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those who are on the No-Filing Service.
You will be notified by IRAS through letter, form, or SMS if you are required to file an Income Tax Return or have been selected for No-Filing Service.
Non-residents who derived income from Singapore in the preceding year are required to file an Income Tax Return. It does not matter how much you earned in the previous year.
2. Paying your tax bill
Once you receive your tax bill you will need to pay your outstanding tax before the date indicated in the bill. You may apply for GIRO and enjoy up to 12 interest-free monthly installments or pay in full through available electronic payment modes.
Auto-Inclusion Scheme (AIS) for Employment Income
For YA 2022, AIS is compulsory for employers with 5 or more employees. AIS aims to simplify tax filing by eliminating the distribution of hardcopies of IR8A/IR8S/Appendix 8A/Appendix 8B by employers to their employees. Through AIS, the submitted income information will be auto-included in employees’ tax returns for their verification and electronic tax filing.
Employers may start to submit their employees’ income to IRAS from 6 January and must be completed by 1 March each year.
Tax reliefs, rebates and deductions
Tax reliefs and rebates are only available for Singapore tax residents. Subject to qualifying conditions, a personal income tax relief cap of S$80,000 applies to the total amount of all tax reliefs claimed for each YA. Deductions on rental expenses, donations, for self-employed, partnership, trade, business, profession or vocation, and for employees can be claimed if you satisfy the qualifying conditions.
Accmaster as your tax agent
Accmaster is a group of Accredited Tax Advisers (ATA) and Accredited Tax Practitioners (ATP) who can help you maximize the benefits of business-friendly taxation policies in Singapore. You will have access to our skilled experts who are experienced in your specific industry and up-to-date on various tax and regulatory changes. Our tax services include tax optimization strategy advice and implementation and tax planning and filing.
We also act on behalf of employers to prepare and file the employees’ income tax through Auto Inclusion Scheme.
Our Individual Income Tax services and tax plan include:
- Preparation of income tax returns and tax computations for individuals, sole-proprietorship and partnerships
- Preparation of Individual Income
- Tax Returns for doctors, lawyers and commission agents Tax clearance for expatriates (Form IR21)
- Application for tax schemes - Not Ordinarily Resident scheme
- Assistance to attending to queries from IRAS
- Application to IRAS for voluntary disclosures of past tax errors / negligence
- Local personal tax planning and advisory
- Assistance to tax investigation case
