Individual income tax in Singapore

Time is coming to pay individual income tax in Singapore. I have checked IRAS web page for the 2010 figures. As you may know taxes payable each year of assessment is based on income earned in the preceding calendar year. So in 2011 we pay tax over the chargeable income earned during 2010. The chargeable income is the amount remaining after deducting from assessable income the personal reliefs to which tax payer entitled.

In Singapore progressive tax system is used for local residents. One do not pay tax for a annual chargeable income up to 20,000 SGD. From there you pay a fixed amount of tax for the first X SGD of your income and the remaining portion is taxed based on a rate from 3.5% up to 20%. For example if you are making 4,500 SGD per month (gross income) and have no reliefs your chargeable income will be 54,000 SGD. For the first 40,000 SGD you would pay a fixed amount of 900 SGD. For the remaining 14,000 SGD you would pay 1,190 on 8.5% rate (14,000 x 8.5%) so you totally pay 2,090 SGD.

Income	Tax Rate
Tax rate on first 20,000	0%
Tax rate on next 10,000	3.5%
Tax rate on next 10,000	5.5%
Tax rate on next 40,000	8.5%
Tax rate on next 80,000	14%
Tax rate on next 160,000	17%
Tax rate on above 320,000	20%
Tax rate on capital gains	0%
Tax rate on income earned overseas	0%
Tax rate on dividends received from Singapore company	0%

Singapore Individual Income Tax Rates

Below is a table I have prepared by using IRAS tax calculator. You can use this to quick check the tax you will probably pay (without any relief). For example someone making 5,000 SGD per month will pay 2,600 SGD for all year tax which is around 4.3% of the gross annual salary.

SGD / month	SGD / Year	Fixed Tax Portion	You pay	Remaining	rate %	You pay	Total tax	% to gross Income
2000	24000	20000	0	4000	3,5	140	140	0,6
2500	30000	20000	0	10000	3,5	350	350	1,2
3000	36000	30000	350	6000	5,5	330	680	1,9
3500	42000	40000	900	2000	8,5	170	1070	2,5
4000	48000	40000	900	8000	8,5	680	1580	3,3
4500	54000	40000	900	14000	8,5	1190	2090	3,9
5000	60000	40000	900	20000	8,5	1700	2600	4,3
5500	66000	40000	900	26000	8,5	2210	3110	4,7
6000	72000	40000	900	32000	8,5	2720	3620	5,0
6500	78000	40000	900	38000	8,5	3230	4130	5,3
7000	84000	80000	4300	4000	14	560	4860	5,8
7500	90000	80000	4300	10000	14	1400	5700	6,3
8000	96000	80000	4300	16000	14	2240	6540	6,8
8500	102000	80000	4300	22000	14	3080	7380	7,2
9000	108000	80000	4300	28000	14	3920	8220	7,6
9500	114000	80000	4300	34000	14	4760	9060	7,9
10000	120000	80000	4300	40000	14	5600	9900	8,3
10500	126000	80000	4300	46000	14	6440	10740	8,5
11000	132000	80000	4300	52000	14	7280	11580	8,8
11500	138000	80000	4300	58000	14	8120	12420	9,0
12000	144000	80000	4300	64000	14	8960	13260	9,2
12500	150000	80000	4300	70000	14	9800	14100	9,4
13000	156000	80000	4300	76000	14	10640	14940	9,6
13500	162000	160000	15500	2000	17	340	15840	9,8
14000	168000	160000	15500	8000	17	1360	16860	10,0
14500	174000	160000	15500	14000	17	2380	17880	10,3
15000	180000	160000	15500	20000	17	3400	18900	10,5
15500	186000	160000	15500	26000	17	4420	19920	10,7
16000	192000	160000	15500	32000	17	5440	20940	10,9
16500	198000	160000	15500	38000	17	6460	21960	11,1
17000	204000	160000	15500	44000	17	7480	22980	11,3
17500	210000	160000	15500	50000	17	8500	24000	11,4
18000	216000	160000	15500	56000	17	9520	25020	11,6
18500	222000	160000	15500	62000	17	10540	26040	11,7
19000	228000	160000	15500	68000	17	11560	27060	11,9
19500	234000	160000	15500	74000	17	12580	28080	12,0
20000	240000	160000	15500	80000	17	13600	29100	12,1

Singapore Individual Income Tax Table