Taxpayers
Taxpayers of personal income tax are divided into two categories: resident individuals and non-resident individuals. Resident individuals generally refer to individuals who reside in Singapore. Individuals who stay in or are employed in Singapore for more than 183 days in a tax year are also considered resident individuals for that tax year.
Taxable Objects and Tax Rates
Generally, both resident individuals and non-resident individuals are required to pay tax on any income sourced from Singapore and any income received in Singapore from outside Singapore.
If a portion of the business activities conducted by a non-resident is carried out in Singapore, the profits obtained from such activities that are not directly related to the activities conducted outside Singapore are considered income sourced from Singapore.
The following types of income, if paid directly or indirectly by resident individuals or a permanent establishment located in Singapore, or if such payments can be deducted from income sourced from Singapore, are considered income sourced from Singapore:
1. Interest, commissions, fees, or any other expenses related to any loan or debt;
2. Royalties, technical fees, and management fees;
3. Rent or other expenses for the use of any movable property.
Singapore does not impose tax on personal capital gains, and capital losses cannot be offset.
If a non-resident individual’s country of residence has a tax treaty with Singapore, that non-resident individual may apply for corresponding tax relief according to the provisions of the tax treaty.
Additionally, there are some specific tax relief agreements for non-residents, such as income sourced from outside Singapore that is remitted to Singapore by non-resident individuals being exempt from tax.
The progressive tax rate table for resident individuals for the tax year ending December 31, 1994 (omitted).
Resident individuals in Singapore can enjoy certain tax reliefs; for the tax year ending December 31, 1994, each person can enjoy a one-time tax relief of 10% of the annual taxable amount, and in 1995, the tax relief amount was changed to a maximum of 600 Singapore dollars.
Generally, non-resident individuals are taxed on their taxable income at a rate of 27%; those applicable under tax treaties are taxed according to the provisions of the treaties.
In many cases, non-resident individuals can enjoy a preferential tax rate of 10%.
If a non-resident individual resides in Singapore for more than 60 days but less than 183 days in any calendar year, their employment income may be taxed at a rate of 15%.
The withholding tax rate is generally 27%.
The tax year for personal income tax is the calendar year. Taxpayers must pay the tax within 30 days after the tax amount is calculated by the tax authority.
