Singapore tax — the complete guide for expats

Singapore's tax system is one of the most straightforward and favourable in the world for expats. There is no capital gains tax, no inheritance tax, and no tax on most foreign-sourced income. The progressive income tax rates top out at 24% — significantly lower than most Western countries.

The Inland Revenue Authority of Singapore (IRAS) administers all individual income tax. Most expats on a standard employment arrangement will find the process relatively painless — your employer withholds tax, IRAS pre-fills much of your return, and the myTax Portal makes filing straightforward.

That said, there are a few things that catch expats out: understanding whether you're a tax resident, knowing what overseas income is taxable, and making the most of available reliefs. This guide covers all of it.

Your tax residency status determines which rates apply to your income. Singapore uses a simple day-count rule:

You are a tax resident if you are physically present in Singapore for 183 days or more in a calendar year, or if you are employed in Singapore for a continuous period spanning at least two years (regardless of the day count in any one year).

Tax residents pay progressive rates from 0% on the first S$20,000 up to 24% on income above S$1,000,000. They also qualify for personal reliefs that can significantly reduce their taxable income.

Non-residents are generally taxed at a flat 15% on employment income, or at resident rates — whichever results in a higher tax bill. Different rules may apply to other types of non-resident income. Non-residents do not qualify for personal reliefs.

For most expats on a standard Employment Pass arriving at the start of the year, you'll be a tax resident from your first full calendar year. If you arrive mid-year, your first year may be assessed as a non-resident — though IRAS does apply a "tax resident treatment" to some cases where employment spans two consecutive years.

Singapore uses a progressive tax system for residents. The rates below apply to chargeable income — that is, your income after deducting all eligible reliefs. All figures are in Singapore dollars.

Singapore taxes income accruing in or derived from Singapore. For most expats on employment, this means your Singapore salary, bonuses, director fees, and benefits-in-kind. A few things to know:

Employment benefits: Benefits provided by your employer — housing allowances, school fee reimbursements, club memberships, car benefits — are generally taxable as employment income. The value is added to your assessable income. Your employer's HR team should include these in your IR8A form each year.

Overseas income: Foreign-sourced income (dividends, rental income, consulting income from overseas clients) is generally not taxable in Singapore unless it is remitted to a Singapore bank account. Even then, there are exemptions for certain types of income. This is a meaningful advantage for expats with investment income abroad.

What is not taxable: Capital gains (Singapore has no CGT), inheritance and gifts, most investment returns on overseas assets not remitted here, and CPF employer contributions.

The Singapore tax year runs from 1 January to 31 December. Filing is done in the first four months of the following year — the deadline for online filing via myTax Portal is 18 April. Paper filing closes 15 April.

Most expats on standard employment will find the process simpler than in their home country. Here's how it works:

Tax reliefs reduce your chargeable income — the figure on which your tax is calculated. Even if your gross income is high, claiming all eligible reliefs can meaningfully reduce your effective tax rate. Reliefs are claimed when you file your return via myTax Portal.

As an expat (non-Singapore citizen or PR), you won't qualify for all reliefs — some, like the Parent Relief or Grandparent Caregiver Relief, require the dependant to be a Singapore citizen or PR. But several reliefs are open to all tax residents:

Singapore has an extensive network of Double Taxation Agreements (DTAs) with over 90 countries. A DTA prevents you from being taxed on the same income in both Singapore and your home country.

How this works in practice: if your home country wants to tax your Singapore employment income, the DTA typically allocates taxing rights to Singapore (where the work is performed). Your home country may still require you to declare the income, but should provide a credit for Singapore tax paid — so you don't pay twice.

DTAs cover different types of income differently — employment income, dividends, royalties, capital gains, and pensions all have separate provisions. If your situation involves income from multiple sources or countries, it's worth consulting a cross-border tax adviser or your home country's tax authority.

Countries with DTAs with Singapore include:

The Supplementary Retirement Scheme (SRS) is a voluntary savings scheme that offers one of the most straightforward and meaningful tax reductions available to expats in Singapore. It is worth understanding even if you're early in your Singapore tenure.

How it works: You open an SRS account at DBS, OCBC, or UOB. Each dollar you contribute to the account in a calendar year is deducted from your taxable income for that year. For a foreigner, the annual contribution cap is S$35,700.

The tax saving: If your marginal tax rate is 15%, a maximum S$35,700 contribution saves you S$5,355 in tax in the year of contribution. If your rate is 18%, the saving is S$6,426. The saving is immediate — it appears in your tax assessment for that year.

What happens to the money: SRS funds can be left in cash, but many account holders invest them through their SRS bank's platform to seek better returns. Options include Singapore stocks, ETFs, unit trusts, bonds, and insurance products.

Withdrawal rules: For SRS, the retirement age applicable when you first opened your account determines when penalty-free withdrawals can begin. On or after that prescribed retirement age, only 50% of each withdrawal is subject to tax. Premature withdrawals (before the prescribed retirement age) are generally subject to a 5% penalty plus full taxation of the withdrawn amount.

Foreigners leaving Singapore: Foreigners who meet IRAS's 10-year conditions may qualify for a special lump-sum withdrawal treatment, subject to IRAS rules, under which only 50% of the amount is taxable and no 5% penalty applies. Check the current IRAS conditions before relying on this, as eligibility criteria apply.