FAQ on Personal/Individual Income Tax

1. What is the Singapore income tax rate?
2. What is the annual set date for filing individual / personal income tax in Singapore?
3. How are fringe benefits taxed?
4. Are foreigner employees required to contribute to the CPF fund?
5. What is the individual taxation scheme for non-residents?

Answers

1. What is the Singapore income tax rate?

   The Singapore individual income tax rates for YA 2007 and onwards are shown below. Singapore individual / personal income taxes are charged progressively (0% - 20%), based on your chargeable income. The chargeable income is your income plus any other personal income, minus all deductions, relief’s and rebates.

   	Chargeable Income (S$)	Rate (%)	Gross Tax Payable (S$)
   On the first On the next	20,000 10,000	0 3.50	0 350
   On the first On the next	30,000 10,000	- 5.50	350 550
   On the first On the next	40,000 40,000	- 8.50	900 3,400
   On the first On the next	80,000 80,000	- 14	4,300 11,200
   On the first On the next	160,000 160,000	- 17	15,500 27,200
   On the first Above	320,000 320,000	- 20	42,700

   For YA 2008 and 2009, a personal income tax rebate of 20%, up to a maximum of S$2,000 is granted.

2. What is the annual set date for filing individual / personal income tax in Singapore?

   Due date for filing individual taxes in 15 April each year. Late filing or failing to file at all could incur penalties.

3. How are fringe benefits taxed?

   Employer-provided fringe benefits are taxed in the employee's hands. As a number of benefits are taxed on a concessionary basis in Singapore, it is possible to reduce an individual's tax liability through appropriate structuring of his/her remuneration package.

4. Are foreigner employees required to contribute to the CPF fund?

   Foreigners on Singapore work passes such as Employment Pas, S Pass, etc. are exempt from CPF contributions in Singapore.

5. What is the individual taxation scheme for non-residents?

   Non-residents are taxed at a flat rate of 15%.