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Last updated at
October 21, 2025
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Book NowIncome tax in Singapore is collected by the Inland Revenue Authority of Singapore (IRAS) and applies to income earned in the country while income earned overseas is generally not taxable even if received in Singapore, except in specific cases. The tax follows a progressive system for residents. It starts at 0 percent and rises to 24 percent for chargeable income above one million Singapore dollars in the Year of Assessment 2024. Non-residents generally face a flat 24 percent rate on most types of income. Employment income for non-residents may be taxed at 15 percent or at resident rates if that results in a higher tax. This blog explains who needs to pay income tax, how the system works and the steps involved in filing and staying compliant.
Income tax in Singapore is a direct tax on income of individuals and businesses that is earned in the country or received in Singapore. The system is managed by the Inland Revenue Authority of Singapore and it applies every year on chargeable income. The assessment year will run on a preceding year basis so income earned in 2024 is taxed in the Year of Assessment 2025.
The scope of taxable income will include salary, bonuses, allowances, trade profits, rental of property, and investment returns. Income from overseas will also be taxed if it is received in Singapore under specific conditions.
Resident status or non resident status will decide the applicable tax rates and filing rules. Residents pay on a progressive scale up to 24 percent while non-residents pay a flat rate that usually applies on employment or other income earned in Singapore.
Your tax rate in Singapore will depend on your residency status for tax purposes and not on your nationality. The meaning of being a resident or a non-resident will decide how the income tax will be calculated.
Resident status applies when:
You are a Singapore Citizen or Permanent Resident who makes Singapore your permanent home.
You are a foreigner who stayed or worked in Singapore for at least 183 days in the previous year and your presence is proven by records of work or residence.
You worked in Singapore for three continuous years even if one or more years had fewer than 183 days.
You worked across two calendar years and stayed without a break for at least 183 days.
Non-resident status applies when:
You stayed in Singapore for fewer than 183 days in a calendar year and do not meet the tests of residency.
You came only for short-term employment or business trips and Singapore is not your main place of residence.
Residents of Singapore will pay tax using progressive rates. This means higher income is taxed at higher marginal rates. Below are the rates for the Year of Assessment 2024.
| Chargeable Income (SGD) | Tax Rate on Excess (%)
|
| 0 – 20,000 | 0% |
| 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% |
| 320,001 – 500,000 | 22% |
| 500,001 – 1,000,000 | 23% |
| Above 1,000,000 | 24% |
Non-residents in Singapore will pay tax under a different system from residents. The rules for non-residents are simpler but generally result in higher rates. Tax is applied depending on the type of income earned in Singapore and the duration of stay.
Non-resident tax rules:
Employment income will be taxed at a flat 15 percent or at resident rates whichever results in higher tax. This ensures fairness for short-term workers.
Director’s fees, consultancy income, and rental income will be taxed at a flat 24 percent. These types of income are not eligible for progressive rates.
Non-residents will not qualify for most personal reliefs or rebates. This means their taxable income is fully chargeable without deductions available to residents.
Income above S$22,000
If your total income in the preceding year exceeds S$22,000, you are required to file an income tax return.
Self-employment profit above S$6,000
If you have self-employment income with a net profit exceeding S$6,000, you must file an income tax return.
Non-resident with Singapore income
If you are a non-resident who derived income from Singapore, you are required to file an income tax return, regardless of the amount earned.
Notice from IRAS
If you receive a notice from the tax authority requiring a return, you must file even if your income is below the limits.
The tax year in Singapore will run on the calendar year. Income of a person earned in one year will be taxed in the Year of Assessment of the next year. The system will make sure that all income is on record and tax will be worked out in a proper way.
Key deadlines and process:
Paper filing usually closes in early April each year. Taxpayers submitting a paper return must ensure that the forms reach IRAS on or before the deadline.
Electronic filing can be done from 1 March 2025 and closes on 18 April 2025. Filing online is faster and automatically calculates tax payable.
You can file using a Singpass account. Once the return is submitted, IRAS will issue a Notice of Assessment starting from the end of April.
If you disagree with the assessment, you must file an objection within 30 days.
Residents of Singapore may claim reliefs to lower chargeable income. These reliefs reduce total tax and ensure tax applies only on income after eligible deductions. Knowing available reliefs helps plan tax efficiently.
Common reliefs include:
Earned income relief for age and income level.
Spouse relief for supporting a spouse with low or no income.
Parent relief for supporting dependent parents or grandparents.
CPF relief on mandatory contributions to the Central Provident Fund.
Example: Earning S$120,000 in 2023 and claiming S$20,000 in reliefs reduces taxable income to S$100,000. This lowers effective tax. For YA 2025 a personal income tax rebate of 60 percent up to S$200 applies automatically.
Failure to file or pay tax in Singapore will result in penalties from the IRAS. The authority will impose a fine of up to S$5,000 and may issue a summons on the taxpayer to enforce compliance. A late payment penalty of 5 percent will apply on any unpaid tax. If the balance remains unpaid the IRAS will add further penalties at 1 percent per month for each completed month on the outstanding amount until full settlement is made. Interest may also accrue on unpaid amounts increasing the total liability over time.
Repeated failure to meet filing or payment duties will result in stronger action. The case may go to court and legal steps will be taken to recover the tax. Filing and paying on time will avoid extra charges and will help a taxpayer keep a clear record with the IRAS.
Income tax in Singapore applies to residents and non-residents. Residents will pay tax on the chargeable income of a year using progressive rates. Non-residents will pay a flat rate on most income and certain benefits. The total tax will depend on the residency status of a person, the amount of chargeable income, and the reliefs that will be claimed on the income. Filing will be required when income or self-employment profit exceeds a threshold set by the IRAS. The annual deadline will fall in the month of April. Penalties will apply on late or incorrect filing. Knowing the residency status and claiming reliefs correctly will help manage the tax on the income and maintain a clear record on the IRAS system.
Who pays income tax in Singapore?
Anyone earning income in Singapore or receiving income sourced from Singapore will pay tax. Residents follow progressive rates. Non-residents pay a flat rate on most income.
How does residency affect income tax in Singapore?
Residency decides which rate applies. Residents can claim some reliefs. Non-residents usually cannot.
What income is taxed under income tax in Singapore?
Salary, bonuses, allowances, business profit, rental and investment returns are taxed. Overseas income is taxed if received in Singapore.
When must income tax in Singapore be filed?
A return will be required when income or self-employment profit exceeds the IRAS threshold. Non-residents with Singapore income or receiving a notice from IRAS will also need to file.
What happens if income tax in Singapore is not filed on time?
If the deadline is missed, penalties and interest will apply. Continued delay can result in legal action.
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