What is Personal Tax Rates?
Similar to corporate tax, Singapore’s personal tax rate is one of the lowest and most competitive in the world. Depending on the tier of income earned, tax rates start from 0% to a maximum of 22% and there are also various tax reliefs that the taxpayer can apply to reduce the tax payable.
The Table shows the tax rates effective for Tax Resident for each tier of income from YA2017 onwards. [Extracted from IRAS – Individual Income Tax Rates]
| Chargeable Income | Income Tax Rate (%) | Gross Tax Payable ($) |
| First $20,000 Next $10,000 | 0 2 | 0 200 |
| First $30,000 Next $10,000 | – 3.50 | 200 350 |
| First $40,000 Next $40,000 | – 7 | 550 2,800 |
| First $80,000 Next $40,000 | – 11.5 | 3,350 4,600 |
| First $120,000 Next $40,000 | – 15 | 7,950 6,000 |
| First $160,000 Next $40,000 | – 18 | 13,950 7,200 |
| First $200,000 Next $40,000 | – 19 | 21,150 7,600 |
| First $240,000 Next $40,000 | – 19.5 | 28,750 7,800 |
| First $280,000 Next $40,000 | – 20 | 36,550 8,000 |
| First $320,000 In excess of $320,000 | – 22 | 44,550 |
Tax reliefs are available and can be applied for if you are a Singapore Tax Resident and if you also meet the qualifying condition for the tax reliefs. You can apply for multiple tax reliefs as long as you are eligible during the year to be assessed. It is important to ensure that you are able to fulfill all the criteria for a tax relief before applying for one.
Type of Tax Reliefs
There are various tax reliefs that can be applied for, which include, but are not limited to the following:-
- Earned Income
You are eligible for this relief as long as you have taxable income from employment, pension and/or trade, business, profession or vocation.
Eligibility: All Tax Residents
- Spouse / Handicapped Spouse
You are eligible for this relief if your spouse was living with and/or supported by you and your spouse have not earned more than S$4,000 in the year assessed.
Eligibility: All Tax Residents
- Qualifying Child / Handicapped Child
You are eligible for this relief if you are maintaining your biological/ legally adopted and/or step child. For qualifying child relief, it is important to note that the child must be below the age of 16 years old or studying full-time at any university or other educational institution. The child should also not have an annual income exceeding S$4,000 in the year assessed.
Eligibility: All Tax Residents
- Parent / Handicapped Parent
This relief is also applicable to tax residents who are supporting their parents, grandparents, parents-in-law and/or grandparents-in-law in Singapore
In order to be eligible for this relief, the dependant has to be residing in Singapore, living in the same household as the Tax Payer or Tax Payer must have at least incurred S$2,000 or more in order to support the dependant should the dependant be living in a different household.
The dependant has to be at least 55 years of age and/or suffered from physical or mental disability and must not have a annual income exceeding S$4,000 in the year assessed.
Eligibility: All Tax Residents
- Life Insurance
You are eligible for this relief only if you fulfill all three qualifying conditions:
- Your total compulsory employee CPF contribution, self-employed Medisave/Voluntary CPF contribution and voluntary cash contribution to your Medisave account in 2019 was less than $5,000;
- You paid insurance premiums in 2019 on your own lifeinsurance policy; and
- The insurance company must have an office or branch in Singapore if your policies are taken on or after 10 August 1973.
Eligibility: All Tax Residents
- Course Fees
This relief can be claimed should the course fees be incurred in 2019 for any course, seminar or conference leading to an approved academic/ professional/ vocation qualification or relevant to current employment, trade or business.
Eligibility: All Tax Residents
- NSmen, NSman Wife and NSman Parent
You are eligible for this relief as long as you have completed your full-time National Service under the Enlistment Act and/or deemed to have completed such service by the relevant authority.
Eligibility: All Tax Residents
- Foreign Domestic Worker Levy
Only female tax resident are able to claim for this relief provided that she or her spouse have engaged the service of a foreign domestic worker in 2019 and can only be used to offset her earned income.
Eligibility: Female Tax Residents
- Working Mother’s Child Relief
Only female tax resident who have Singapore Citizens child/children are eligible for this relief. Regardless of marital status, as long as the tax payer have earned income from employment or pension and she must have maintained a child who is a Singapore Citizen in 2019.
Eligibility: Female Tax Residents
For a comprehensive list of reliefs eligible for you, please refer to IRAS – Deductions for Individuals (Reliefs, Expenses, Donations). Our consultants will be able to provide you with the assistance you need to calculate your personal income tax and other tax rates. Contact us today to see how we can help you.
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