Singapore Personal Income Tax Guide

By Author: Diane Paz
Total Articles: 172
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One of the lowest Personal income tax rates in the world are in Singapore. In order to determine the Singapore income tax liability of an individual, you need to first determine the tax residency and amount of chargeable income and then apply the progressive tax rate to it. Some of the most important factors about Singapore income tax for individuals include:

* The rule followed in Singapore is a progressive tax rate that starts at 0% and ends at 20% above S$320,000.
* There is no capital gain or inheritance tax.
* Income being taxed in Singapore are only income earned in the country. Barring few exceptions, no tax is imposed on income earned by individuals while working overseas.
* Tax rules depend on the tax residency of the individual.
* Tax filing due date for individuals is April 15 of each year. Income tax is assessed based on a preceding year basis.

A list of the progressive tax rate for individuals who are residents in Singapore is found below. Filing of personal tax return is mandatory if your annual income is S$22,000 or more. You do not need to pay tax if your annual ...
... income is less than S$22,000. However, if you have been informed by Singapore tax department to submit your tax return, you may still need to file a tax return.

It is the yearly obligation for every eligible taxpayer to file his tax return. All completed forms must be submitted to Singapore tax department by the 15th of April.

If your annual income is less than S$22,000, you do not need to pay tax. However, returns if you have been informed by tax authority to submit your tax form, you may still need to file returns . Even if you do not have any income in previous years, you still need to declare zero income in your tax form and submit by 15 Apr. If your annual income is S$22,000 or more, the filing of tax returns is compulsory.

You can choose to file your returns online or by mail. IRAS will send you the appropriate paper tax form, as listed below, during February to March.

1. For tax resident individuals – Form B1
2. For self-employed – Form B
3. For non-resident individuals – Form M

Penalties are imposed for filing late or not filing.

After you have filed your returns, you will receive your Notice of Assessment or tax bill by September. The amount of tax you have to pay will be indicated on the tax bill. If you disagree with your tax amount, you need to inform tax department within 30 days from the date of your tax bill and state your reasons for objection.

Within 30 days from receiving your Notice of Assessment, you must pay the full amount of tax. Such payment must be made, whether or not you have informed tax authority about your objection. If your tax remains outstanding after 30 days, a penalty will be imposed.

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