Income Tax
All income earned / received in Singapore is subjected to payment of income tax, Singapore has no capital gain tax, but when someone trades properties frequently , his gain is subjected to income tax. Income tax is assessed based on last year's income basis.
Tax resident:
1. Singaporean
2. SPR if permanent home is established in Singapore
3. Foreigner who stayed or worked in Singapore for 183 days or more in the previous year*Not including director of a company
If otherwise, the person will be treated as a non-resident of Singapore for tax purpose.
From YA 2012 onwards
Chargeable Income Rate
First $20,000 - Rate (0%) , Gross Tax Payable ($0)
Next $10,0000 - Rate (2%), Gross Tax Payable ($200)
First $30,000 - Rate (-), Gross Tax Payable ($200)
Next $10,000 - Rate (3.5%), Gross Tax Payable ($350)
First $40,000 - Rate (-), Gross Tax Payable ($550)
Next $40,000 - Rate (7%), Gross Tax Payable ($2 800)
First $80,000 - Rate (-), Gross Tax Payable ($3 350)
Next $40,000 - Rate (11.5%) , Gross Tax Payable ($4 600)
First $120,000 - Rate (-), Gross Tax Payable ($7 950)
Next $ 40,000 - Rate (15%), Gross Tax Payable ($6 000)
First $160,000 - Rate (-), Gross Tax Payable ($13 950)
Next $ 40,000 - Rate (17%), Gross Tax Payable ($6 800)
First $200,000 - Rate (-), Gross Tax Payable ($20 750)
Next $120,000 - Rate (18%), Gross Tax Payable ($21 600)
First $320,000 - Rate (-), Gross Tax Payable ($42 350)
Above $320,000- Rate (20%)
Tax rates for non-resident individuals
1. Employment income: 15% or resident rate, whichever higher
2. Director's fees, consultation fees & all other income will be taxed at 20% from YA 2005 onwards
Income Tax on rental Incomes
Rent received from letting of property is subjected to income tax, rent of the premises, maintenance, furniture and fittings are all include in Rental Income. After deductions for allowable expenses, the net amount is taxable.
Formula :
Gross Rent - Total allowable expenses / by net taxable rent
*Allowable rental income expenses
1. Housing loan interest
2. Property Tax
3. Fire Insurance
4. Maintenance Fee to MCST
5. Repairs(Including painting & pest control, but excluding renovations)
6. Cost of renewal of lease*Includes commission paid to Agent
7. Management fees paid to Agents to take care of the tenant**case to case basis subject to maximum of 5% gross rent
8. Agent Commission
9. Replacement of furniture and fittings*Cannot account for Depreciation & cost of getting new and additional furniture and fittings
10. Rental of furniture
11. Internet charge/ expenses and utility expenses for tenant
Rental income is taxed when it is due and payable to property owner, not the date of actual receipt , any rental deficits cannot be used to offset any other income and all joint owners is taxed on rental income based on their share in the property regardless how much each contribute to the purchase price of the property and regardless of who collects the rent.
Tax returns need to be filled by 15 April(for paper returns) or 18 April(for e-Filing)
*Enforcement actions for not filing on time includes:
1. 5% penalty
2. 1% additional penalty if amount of tax outstanding is not paid within 60 days of the imposed 5% penalty
3. Warrant of Arrest
4. Other legal actions
5. Payment due within 1 month from date of Notice of Assessment
6. Summons to attend Court
7. Composition fee imposed (up to maximum of $1000)
*Other enforceable actions will be taken to recover the outstanding loan may include:
-Instructing any third parties, payer's bank or tenant to pay to the Comptroller*Includes informing the Statutory Boards and Ministries
-Issuing a direction to prevent payer's employer to deduct outstanding tax from salary
-Instituting legal proceedings against payer to recover the outstanding tax
-issuing a direction to prevent payer from leaving Singapore
Tax resident:
1. Singaporean
2. SPR if permanent home is established in Singapore
3. Foreigner who stayed or worked in Singapore for 183 days or more in the previous year*Not including director of a company
If otherwise, the person will be treated as a non-resident of Singapore for tax purpose.
From YA 2012 onwards
Chargeable Income Rate
First $20,000 - Rate (0%) , Gross Tax Payable ($0)
Next $10,0000 - Rate (2%), Gross Tax Payable ($200)
First $30,000 - Rate (-), Gross Tax Payable ($200)
Next $10,000 - Rate (3.5%), Gross Tax Payable ($350)
First $40,000 - Rate (-), Gross Tax Payable ($550)
Next $40,000 - Rate (7%), Gross Tax Payable ($2 800)
First $80,000 - Rate (-), Gross Tax Payable ($3 350)
Next $40,000 - Rate (11.5%) , Gross Tax Payable ($4 600)
First $120,000 - Rate (-), Gross Tax Payable ($7 950)
Next $ 40,000 - Rate (15%), Gross Tax Payable ($6 000)
First $160,000 - Rate (-), Gross Tax Payable ($13 950)
Next $ 40,000 - Rate (17%), Gross Tax Payable ($6 800)
First $200,000 - Rate (-), Gross Tax Payable ($20 750)
Next $120,000 - Rate (18%), Gross Tax Payable ($21 600)
First $320,000 - Rate (-), Gross Tax Payable ($42 350)
Above $320,000- Rate (20%)
Tax rates for non-resident individuals
1. Employment income: 15% or resident rate, whichever higher
2. Director's fees, consultation fees & all other income will be taxed at 20% from YA 2005 onwards
Income Tax on rental Incomes
Rent received from letting of property is subjected to income tax, rent of the premises, maintenance, furniture and fittings are all include in Rental Income. After deductions for allowable expenses, the net amount is taxable.
Formula :
Gross Rent - Total allowable expenses / by net taxable rent
*Allowable rental income expenses
1. Housing loan interest
2. Property Tax
3. Fire Insurance
4. Maintenance Fee to MCST
5. Repairs(Including painting & pest control, but excluding renovations)
6. Cost of renewal of lease*Includes commission paid to Agent
7. Management fees paid to Agents to take care of the tenant**case to case basis subject to maximum of 5% gross rent
8. Agent Commission
9. Replacement of furniture and fittings*Cannot account for Depreciation & cost of getting new and additional furniture and fittings
10. Rental of furniture
11. Internet charge/ expenses and utility expenses for tenant
Rental income is taxed when it is due and payable to property owner, not the date of actual receipt , any rental deficits cannot be used to offset any other income and all joint owners is taxed on rental income based on their share in the property regardless how much each contribute to the purchase price of the property and regardless of who collects the rent.
Tax returns need to be filled by 15 April(for paper returns) or 18 April(for e-Filing)
*Enforcement actions for not filing on time includes:
1. 5% penalty
2. 1% additional penalty if amount of tax outstanding is not paid within 60 days of the imposed 5% penalty
3. Warrant of Arrest
4. Other legal actions
5. Payment due within 1 month from date of Notice of Assessment
6. Summons to attend Court
7. Composition fee imposed (up to maximum of $1000)
*Other enforceable actions will be taken to recover the outstanding loan may include:
-Instructing any third parties, payer's bank or tenant to pay to the Comptroller*Includes informing the Statutory Boards and Ministries
-Issuing a direction to prevent payer's employer to deduct outstanding tax from salary
-Instituting legal proceedings against payer to recover the outstanding tax
-issuing a direction to prevent payer from leaving Singapore
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