Singapore Personal and Corporate Tax Rates for 2020

When we are talking about Singapore tax, we normally mean the personal and corporate taxes. Well, whichever it is, Singapore taxes are the lowest in the world.

Singapore Personal Income Tax Rate

Every Singapore resident who has been making an income in the city-state is liable for the personal income tax. Singapore citizen, permanent residents, and foreigners residing in the city-state for at least 183 days in a tax year are categorized as residents.

The personal tax for residents is between 0%, which is if the yearly income is $22,000 or less. From that, the tax system is progressive, i.e., increasing depending on how much a person makes in a year. The personal income tax can go up to 22% if the yearly income is $3,20,000 or more.

You can see a detailed table of Tax Rate Singapore to know how much you may need to pay depending on your income.

Personal Tax Rate for Non-Residents

Certain categories of non-residents should also pay taxes in the city-state if they make an income in the country.

●     If you are in here for short-term employment of up to 60 days, you are clear of taxes.

●     If you reside in Singapore for 62 to 182 days, you will have to pay taxes the amount of the residents or 15% of your total income- whichever is higher.

●     Consultant and director fees, remuneration, etc. are between 15% and 22%.

Remember, if you are a Singapore citizen, you will only need to pay taxes for the income you make in the city-state.

Singapore Corporate Tax Rate

Singapore Corporate Tax is for companies in the city-state.

Generally speaking, the Singapore corporate tax rate is a flat 17%. However, many companies actually need to pay less than that. There are incentives that enable mostly startups and SMEs to pay lesser than the general Corporate tax.

For newly incorporated companies:

These are the incentives for newly incorporated companies which have been registered for less than three years:

●     There will be a 75% corporate tax exemption for the first $100,000 taxable income.

●     They will also get an additional 50% exemption on another $100,000 taxable income.

●     Anything above that is a flat 17%.

For other Singaporean Companies

●     The tax rate for income between up to $1,00,000 is 4.25%.

●     The tax rate for income between between $1,00,000 and $2,00,000 is 8.5%.

●     Anything above that is 17%.

 Remember, a company needs to fulfil the following conditions to get the tax incentive:

●     The company should be incorporated in Singapore.

●     The company should be a tax resident.

●     The firm can’t have more than 20 shareholders, and among that, one shareholder should hold at least 10% of the total taxes.

What is the Singapore Tax Filing Date?

You usually need to file the personal tax in the month of April. In the case of Corporate tax rate, the IRAS requires you to file it in late November or early December. You can file either by paper or online.