Singapore taxes individuals on a territorial basis: the base captures income earned in Singapore plus a narrow set of receipts from abroad — and for individuals foreign-sourced income is almost always exempt. The top resident rate of 24% took effect from YA2024 and applies unchanged for YA2026. The rules sit in the Income Tax Act 1947 (ITA), administered by the Inland Revenue Authority of Singapore (IRAS).
Four elements matter for planning: the residence tests, the progressive scale with personal reliefs, the flat non-resident rates, and the wide exclusions — capital gains, one-tier dividends, foreign income. The jurisdiction-wide context sits in the Singapore hub.
Concept
Assessment runs on a preceding year basis: income of calendar year N is assessed in year of assessment (YA) N+1, so YA2026 covers 2025 income. A resident pays on the progressive scale and claims reliefs; a non-resident pays flat rates with no reliefs. Source follows the place of activity: employment physically exercised in Singapore is taxable regardless of where the employer sits or where salary is paid (Income Tax Act 1947, s.10).
Tax Residence: 183 Days and the Qualitative Test
An individual is resident for a YA if, in the preceding calendar year, they stayed or worked in Singapore for 183 days or more, or if they "reside in Singapore" within s.2(1) ITA — the qualitative test of settled abode: home, family, economic ties (IRAS — tax residency). IRAS adds two administrative concessions: a continuous work period straddling two calendar years with at least 183 days in total makes both YAs resident; a work period covering three consecutive years makes all three resident even where the edge years fall short of 183 days.
A non-resident with short employment — 60 days or less in a calendar year — is exempt on that employment income; the exemption does not extend to directors, public entertainers and professionals. The mechanics and common mistakes are covered in the article on the 60-day rule.
YA2026 Rates
A resident's chargeable income — income after deductions and reliefs — is taxed on the Second Schedule scale in force from YA2024; Budget 2026 left the rates untouched (IRAS — individual income tax rates). The full scale:
| Chargeable income (S$) | Rate | Tax at top of band (S$) |
|---|---|---|
| 0 – 20,000 | 0% | 0 |
| 20,001 – 30,000 | 2% | 200 |
| 30,001 – 40,000 | 3.5% | 550 |
| 40,001 – 80,000 | 7% | 3,350 |
| 80,001 – 120,000 | 11.5% | 7,950 |
| 120,001 – 160,000 | 15% | 13,950 |
| 160,001 – 200,000 | 18% | 21,150 |
| 200,001 – 240,000 | 19% | 28,750 |
| 240,001 – 280,000 | 19.5% | 36,550 |
| 280,001 – 320,000 | 20% | 44,550 |
| 320,001 – 500,000 | 22% | 84,150 |
| 500,001 – 1,000,000 | 23% | 199,150 |
| above 1,000,000 | 24% | — |
Tax on the first S$320,000 comes to S$44,550 — an effective 13.9%; the headline 24% starts only above S$1,000,000 of chargeable income. No rebate applies for YA2026: the rebate list on the IRAS rates page stops at YA2025, which carried a 60% rebate capped at S$200.
A non-resident pays on employment income the higher of two amounts — a flat 15% or tax computed on the resident scale. Director's fees, rental and most other non-resident income is taxed at a flat 24% (s.43(1)(b) ITA, from YA2024).
The Tax Base
The base takes in employment income (salary, bonus, share options, benefits in kind), income from a trade, business or profession, rental from Singapore property, and royalties. For private capital the list of what Singapore leaves untaxed matters more:
- Capital gains. There is no CGT; disposals of shares, crypto or property stay untaxed unless IRAS recharacterises the activity as trading under the badges of trade — the criteria are set out in capital gains vs trading.
- Singapore dividends. The one-tier system: the company pays corporate tax, and dividends are exempt in shareholders' hands.
- Local interest. Interest on deposits with approved banks and licensed finance companies is not taxable for individuals.
- Foreign income. Dividends, interest, rent and other foreign-sourced receipts of an individual are exempt under s.13(7A) ITA — except income received through a Singapore partnership. The provision, the remote-work traps and the partnership carve-out are analysed in foreign income of individuals in Singapore.
- Inheritance and gifts. Estate duty was abolished in 2008; there is no inheritance tax.
Indirect taxation has moved the other way: GST stands at 9% since 2024, so for a resident living on exempt passive income, consumption is where Singapore actually collects.
Reliefs: What Reduces Chargeable Income
A resident deducts personal reliefs: earned income relief (S$1,000 below age 55), spouse relief (S$2,000), qualifying child relief (S$4,000 per child), working mother's child relief — fixed at S$8,000, S$10,000 and S$12,000 for the first, second and further children born or adopted on or after 1 January 2024 — and parent relief (S$5,500–14,000). Compulsory employee CPF contributions are fully deductible; that line concerns citizens and PRs only — Employment Pass holders sit outside CPF.
Voluntary tools: CPF cash top-ups (up to S$8,000 for one's own accounts plus S$8,000 for family members) and the Supplementary Retirement Scheme — SRS contributions are deductible up to the yearly maximum contribution — S$15,300 for citizens and PRs, S$35,700 for foreigners (IRAS, SRS relief). Total reliefs are capped at S$80,000 per YA. Course fees relief is discontinued with effect from YA2026, the final claim year being YA2025 (IRAS); FDW levy relief lapsed from YA2025 on consultants' summaries.
Effective Burden: Three Profiles
The gap between headline and effective rates shows in typical profiles (computed on the YA2026 scale, no rebate):
| Profile | Annual cash income | Tax | Effective rate |
|---|---|---|---|
| Expat on an EP: S$300,000 salary | S$300,000 | ≈S$40,550 | ≈13.5% |
| Founder: S$150,000 salary + S$500,000 one-tier dividends | S$650,000 | ≈S$12,450 | ≈1.9% |
| Family office principal: foreign dividends and gains | any | ≈0 | ≈0% |
The third profile explains why wealth planning in Singapore starts with the principal's residence: a foreign passive portfolio held by a Singapore resident produces zero personal tax — provided the assets are held directly or through structures outside Singapore partnerships.
Administration: the Annual Cycle and Departure
- The return for a YA opens on 1 March: e-filing via myTax Portal closes 18 April, paper filing 15 April.
- IRAS issues the Notice of Assessment (NOA), typically from late April to September; disagreement is raised by objection within 30 days of the NOA.
- Tax is payable within one month of the NOA, or by up to 12 interest-free GIRO instalments. There is no PAYE withholding from a resident's salary — the taxpayer sets money aside for the bill.
- When a non-citizen employee resigns or leaves Singapore for more than three months, the employer runs tax clearance: it files Form IR21 at least one month before cessation and withholds all monies due to the employee — salary, bonus, leave pay — until IRAS issues its directive. Exceptions: employment of 60 days or less in the year (directors excluded) and income below S$21,000 subject to conditions.
Residence in Cross-Border Structures
Singapore residence comes cheap for mobile capital: there is no worldwide taxation, foreign passive income is exempt, and access to Singapore's extensive treaty coverage runs through the Certificate of Residence — IRAS confirmation for a specific DTA (the CoR procedure). The special expatriate regimes have ended: the NOR scheme is closed, the last statuses expired with YA2024, and planning relies on the general rules — 183 days, the concessions, DTAs.