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Your Lowtax Account

Singapore: Working and Living

Taxation of Individuals

All individuals pay tax on income earned or received in Singapore; however overseas income received in Singapore after January 1, 2004, including income paid into a Singapore bank account (but excluding overseas income received through a partnership in Singapore), is not taxable.

Income tax is assessed based on a preceding year basis.

Tax Rates in 2010


The income tax rates for resident individuals are as follows:

Chargeable income
Rate (%)
Gross tax payable (SGD)
First SGD20,000
Next SGD10,000
First SGD30,000
Next SGD10,000
First SGD40,000
Next SGD40,000
First SGD80,000
Next SGD80,000
First SGD160,000
Next SGD160,000
First SGD320,000
Next SGD320,000

There is a one-off personal income tax rebate of 20% for resident individuals, subject to a cap of SGD2,000, for tax payable for year of assessment 2009.

The income tax rate for non-residents’ employment income is either 15% or the relevant resident tax rate, whichever produces the highest sum. Director's fees, consultation fees and most other income are taxed at 20%, which is generally withheld at source.

Certain other payments to non-resident individuals are subject to withholding tax at source.

The majority of dividend payments received are exempt from income tax.

Capital gains

Generally, capital gains realised from the sale of property in Singapore, or derived from buying and selling shares or other financial instruments, are not subject to tax.

If, however, such sale of property or buying and selling of shares and other financial instruments are regarded as a trade, the gain may be regarded as taxable income.

Real Estate Taxes

Property tax is charged on immovable property, including a house, building and land. The amount of tax due is calculated based on a percentage (tax rate) of the annual value of a property. The tax rate is 10%, or 4% where the property is granted an owner-occupier concession.

From January 1, 2011, the 4% tax rate will be replaced by a three-tier tax rate based on the annual value, as follows:

Annual value
Tax rate
First SGD6,000
Next SGD59,000
Above SGD65,000

Other Taxes

Stamp duty is payable on certain executed documents relating to properties and shares, or interest in properties and shares. Such documents include a lease, sale, purchase, gift or mortgage of property. Liability arises once the document is executed, even if the transaction itself has been aborted.

The amount of duty payable varies according to the transaction. For example, in the case of a mortgage, the duty is SGD4 for every SGD1,000 or part thereof, subject to a maximum duty payable of SGD500..

Withholding Taxes

There are no domestic withholding taxes on dividends, interest or royalties.



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