Who needs to file taxes?
Singapore has one of the world’s lowest personal income tax rates. Individuals in Singapore are categorized as tax residents or non-tax residents, with different tax rates and calculation methods. Therefore, whether an individual is deemed a tax resident in Singapore is a key factor affecting their tax burden.
You will be considered a tax resident for a specific Year of Assessment (YA) if you meet the following conditions:
1. A Singapore citizen residing in Singapore (excluding temporary absences).
2. A Singapore permanent resident who has established a permanent home in Singapore.
3. A foreigner who has resided or worked in Singapore (excluding company directors) for 183 days or more in the preceding year (i.e., the year before the taxable year).
If you do not meet the above conditions, you will be considered a non-tax resident in Singapore.
Additionally, starting from the YA 2024, the highest personal income tax rate will increase to 24%.
Which incomes need to be taxed?
For individual tax residents in Singapore, personal income tax is levied at different rate tiers based on the level of taxable income. The taxable scope includes earned income, property leasing, dividends (specific types), interest, business income, and more. Click to learn more | In affluent Singapore, what types of income require taxation? For more details.
Starting from the YA 2024, a 0% tax rate is applicable to taxable income below SGD 20,000, while a 24% tax rate is applied to taxable income exceeding SGD 1,000,000.
Since the YA 2018, individuals can apply for a maximum annual personal income tax relief of SGD 80,000.
When to file taxes?
The personal income tax filing period in Singapore is from March 1st to April 18th.
The tax year corresponds to the year after the calendar year, for example, for the tax year 2024, it pertains to the calendar year 2023, meaning you need to file the personal income tax for the year 2022.
You can log in to the myTax portal using your Singpass or Singpass Foreign User Account (SFA) to verify the automatically included information and preview your tax statement for the period between March 1st and April 18th.
Your Notice of Assessment or tax statement (in digital or paper format) will be sent to you between the end of April and September.
How to file taxes?
To file taxes, you need to log in to the tax website at mytax.iras.gov.sg and submit your information online through E-filing.
After completing the filing, the tax authority will issue a Notice of Assessment explaining the tax payable. This must be paid within one month of receiving the notice, or penalties may apply.
If you require additional time to submit your income tax return, an extension of up to 14 days can be requested through the myTax Portal.
Documentation required for tax filing
1. IR8A Form
2. Family details (e.g., children, parents) for new deduction claims
3. Detailed information on rental income and other sources of income, if applicable
4. Business registration number, partnership tax reference number (applicable for self-employed individuals and partners)
5. Singpass/Singpass Foreign User Account (SFA)
How to pay taxes?
After receiving the Notice of Assessment, you can choose one of the following methods to pay your taxes based on your situation:
1. ATM (DBS/POSB, OCBC)
2. AXS online platform, AXS stations
3. Cheque/GIRO/online banking/phone banking (service activation required)
4. SingPost Automated Machines (SAM)
5. Telegraphic Transfer (TT)
Tax deductions and rebates
In the 2024 Singapore Budget, the government announced a 50% personal income tax rebate for the 2024 estimated tax year, capped at SGD 200. This initiative is primarily aimed at benefiting middle-income workers, with a total rebate amounting to SGD 350 million.
Furthermore, to allow more taxpayers responsible for family members to enjoy tax rebates, starting from the 2025 estimated tax year, the government will raise the annual income cap for qualifying family members from the current SGD 4,000 to SGD 8,000.
Considering the continuous rise in living costs and wage levels, feedback from the public, tax professionals, and labor representatives prompted the government to consider raising the income threshold for eligible tax-deductible family members.
Currently, taxpayers can receive relevant tax rebates if the annual income of family members they care for is SGD 4,000 or below.
The relevant tax rebate programs include spouse relief, qualifying child relief, and working mother child relief.
