Tax Planning Guide
Master Singapore's tax system to legally minimize your tax burden and grow your wealth. From understanding tax tiers to maximizing SRS benefits, this guide covers everything expats need for smart tax planning.
Singapore offers one of the most attractive tax environments globally. With no capital gains tax, no inheritance tax, and a territorial tax system, expats can legally optimize their tax position while building wealth.
Profits from selling shares, property investments, or business assets are not taxed.
Estate duty was abolished in 2008, enabling seamless wealth transfer to beneficiaries.
Only Singapore-sourced income is taxed. Foreign income remitted may be exempt under certain conditions.
Singapore dividends are tax-exempt. Foreign dividends may also be exempt if conditions are met.
Your tax residency status determines which rates apply to you. Singapore uses a 183-day rule: if you're physically present for 183 days or more in a calendar year, you're considered a tax resident.
| Status | Criteria | Tax Rate |
|---|---|---|
| Tax Resident | 183+ days in Singapore, or Singapore PR/Citizen | 0% to 24% progressive |
| Non-Resident | Less than 183 days in Singapore | 15% or resident rate (higher) |
| Short-Term (≤60 days) | Employment income ≤60 days | Exempt (conditions apply) |
Two-Year Administrative Concession: If you work in Singapore for a continuous period of at least 183 days spanning two calendar years, you may be treated as a tax resident for both years, even if you don't meet the 183-day rule in each individual year.
Singapore uses a progressive tax system. Tax is assessed on a preceding year basis, meaning income earned in 2024 is assessed in Year of Assessment (YA) 2025. The first $20,000 is tax-free, making it favorable for middle-income earners.
| Chargeable Income | Tax Rate | Gross Tax Payable |
|---|---|---|
| First $20,000 | 0% | $0 |
| Next $10,000 (to $30,000) | 2% | $200 |
| Next $10,000 (to $40,000) | 3.5% | $550 |
| Next $40,000 (to $80,000) | 7% | $3,350 |
| Next $40,000 (to $120,000) | 11.5% | $7,950 |
| Next $40,000 (to $160,000) | 15% | $13,950 |
| Next $40,000 (to $200,000) | 18% | $21,150 |
| Next $40,000 (to $240,000) | 19% | $28,750 |
| Next $40,000 (to $280,000) | 19.5% | $36,550 |
| Next $40,000 (to $320,000) | 20% | $44,550 |
| Next $180,000 (to $500,000) | 22% | $84,150 |
| Next $500,000 (to $1,000,000) | 23% | $199,150 |
| Above $1,000,000 | 24% | N/A |
For an annual income of $150,000:
Your Key to Tax Savings & Wealth Growth
The SRS is a voluntary savings scheme that lets you reduce your taxable income today while building retirement wealth. Contributions are tax-deductible, investment gains are tax-free until withdrawal, and only 50% of withdrawals are taxed at retirement age.
Every dollar contributed reduces your taxable income dollar-for-dollar.
Investment returns within SRS are not taxed until withdrawal.
Only half of withdrawals are taxed at statutory retirement age (63).
Singapore Citizens & PRs
$15,300
per year maximum
Foreigners
$35,700
per year maximum
Example: If your income is $150,000 and you contribute max SRS ($15,300 for SC/PR):
| Scenario | Without SRS | With SRS |
|---|---|---|
| Chargeable Income | $150,000 | $134,700 |
| Tax Payable | $12,450 | $10,190 |
| Annual Tax Savings | N/A | $2,260 |
* Assumes no other tax reliefs for simplicity. Actual savings depend on your tax bracket.
Don't let your SRS funds sit idle! You can invest in various instruments:
| Investment Type | Typical Returns | Risk Level | Best For |
|---|---|---|---|
| Fixed Deposits | 2.5% to 3.5% | Low | Capital preservation |
| Singapore Savings Bonds | 2.8% to 3.2% | Low | Guaranteed returns |
| Bond Funds | 3% to 5% | Low-Med | Stable income |
| Balanced Funds | 4% to 7% | Medium | Balanced growth |
| Equity Funds / ETFs | 6% to 10%+ | Higher | Long-term growth |
| REITs | 5% to 8% | Medium | Dividend income |
| Insurance Products | 2% – 4% | Low | Protection + savings |
Beyond SRS, Singapore offers numerous tax reliefs to reduce your taxable income. The personal income tax relief cap is $80,000 per Year of Assessment.
| Relief Type | Amount | SC/PR | FR | Conditions |
|---|---|---|---|---|
| Earned Income Relief | Up to $1,000 | ✓ | ✓ | Below 55 years old |
| Earned Income Relief (55-59) | Up to $6,000 | ✓ | ✓ | 55 to 59 years old |
| Earned Income Relief (60+) | Up to $8,000 | ✓ | ✓ | 60 years and above |
| SRS Relief | $15,300 / $35,700 | ✓ | ✓ | $15,300 for SC/PR, $35,700 for FR |
| CPF Cash Top-up Relief | Up to $16,000 | ✓ | ✗ | $8,000 self + $8,000 family (CPF members only) |
| Course Fees Relief | Up to $5,500 | ✓ | ✓ | Approved courses for employment |
| Life Insurance Relief | Up to $5,000 | ✓ | ✓ | If CPF contributions less than $5,000 |
| Relief Type | Amount | SC/PR | FR | Conditions |
|---|---|---|---|---|
| Spouse Relief | $2,000 | ✓ | ✓ | Spouse income below $4,000 |
| Handicapped Spouse Relief | $5,500 | ✓ | ✓ | Handicapped spouse |
| Qualifying Child Relief (QCR) | $4,000 per child | ✓ | ✓ | Child below 16, or in full-time education |
| Handicapped Child Relief | $7,500 per child | ✓ | ✓ | Handicapped child |
| Working Mother's Child Relief | 15%/20%/25% | ✓ | ✗ | % of mother's earned income (1st/2nd/3rd+ child) |
| Parent Relief (living with) | $9,000 | ✓ | ✓ | Parent 55+ living with you |
| Parent Relief (not living with) | $5,500 | ✓ | ✓ | Parent 55+ not living with you |
| Grandparent Caregiver Relief | $3,000 | ✓ | ✗ | Unmarried grandparent caring for child |
| Foreign Maid Levy Relief | 2× levy paid | ✓ | ✓ | Married women with children |
| Relief Type | Amount | SC/PR | FR | Conditions |
|---|---|---|---|---|
| NSman Relief | $1,500 to $5,000 | ✓ | ✗ | Depends on NS activities and key appointment |
| Donations (IPC) | 250% of donation | ✓ | ✓ | Donations to approved IPCs |
| NSman Wife Relief | $750 | ✓ | ✗ | Wife of NSman |
| NSman Parent Relief | $750 | ✓ | ✗ | Parent of NSman |
Note: All tax reliefs require you to be a tax resident (residing in Singapore for 183 days or more in a calendar year). Non-tax residents are not eligible for any reliefs.
If you're a PR or citizen running your own business, freelancing, or doing gig work, you're considered self-employed. You must declare all business income and are responsible for your own CPF contributions.
Register your business if annual revenue exceeds $100,000 or register as self-employed with IRAS.
PRs and citizens must contribute to MediSave (mandatory) and can make voluntary CPF contributions.
Maintain records of income and expenses for at least 5 years. IRAS may request documentation.
File Form B/B1 by 18 April (paper) or 15 April (e-filing). Report all business income.
Employment Pass (EP) Holders
Your EP is tied to a single employer for a specific job. Freelancing or taking extra work outside your sponsoring employer is prohibited by MOM. You would need an EntrePass or to register a company with a Singaporean/PR director.
S Pass Holders
S Pass holders face even stricter rules. Freelancing or moonlighting violates your work pass conditions and requires special MOM approval. Unauthorized freelance work, even for overseas clients, risks pass cancellation.
Only Singapore Citizens and PRs can freely engage in self-employment and freelance work.
Reduce your taxable income by claiming legitimate business expenses:
* Personal expenses, capital expenditure, and private car expenses are generally not deductible.
Singapore's corporate tax rate is a flat 17%, one of the lowest in the world. New companies enjoy additional exemptions and incentives.
17%
Flat corporate tax rate on chargeable income
~8.5%
For first $300,000 with partial exemption
Singapore holding companies can receive dividends from subsidiaries tax-free under the Foreign-Sourced Income Exemption (FSIE) scheme, provided certain conditions are met.
International reporting requirements affect expats, especially US citizens. Singapore participates in automatic information exchange with over 100 jurisdictions.
US citizens and green card holders must report worldwide income and foreign accounts:
Deadline: April 15 (with extension to October 15). FBAR due April 15 with automatic extension to October 15.
Common Reporting Standard applies to all expats:
Note: The US does not participate in CRS but has FATCA bilateral agreements.
Even if you're not a US citizen, you're still affected by international tax reporting. Here's why:
All Singapore banks require FATCA/CRS self-certification forms when opening accounts, regardless of your nationality.
Under CRS, Singapore reports your account info to your tax residence country. Ensure you're compliant with your home country's tax laws.
Financial institutions require tax residency declarations for insurance policies, investment accounts, and wealth management services.
Singapore financial institutions are legally required to collect and report this information. Non-compliance can result in account restrictions.
Contrary to popular belief, US citizens residing in Singapore are not excluded from financial planning. While some products may have restrictions, many options remain available:
Restrictions vary by provider. Check availability.
💡 Tip: US citizens will need to complete FATCA and CRS declarations when applying for financial products. Work with an advisor experienced in US-Singapore cross-border planning to navigate the options available to you.
Free Trade Agreement Benefits
Under Singapore's Free Trade Agreements (FTAs), certain foreign nationals are eligible for ABSD remission, meaning they're treated the same as Singapore Citizens for property stamp duty purposes. This is a significant benefit that can save hundreds of thousands of dollars!
US Nationals are accorded the same stamp duty treatment as Singapore Citizens.
Nationals and PRs of Switzerland, Norway, Iceland, and Liechtenstein qualify for remission.
| Scenario | Regular Foreigner | FTA National |
|---|---|---|
| First Residential Property | 60% ABSD | 0% ABSD |
| Second Residential Property | 60% ABSD | 20% ABSD |
💰 Example Savings: On a $2,000,000 property, a US citizen saves $1,200,000 in ABSD compared to other foreigners!
IRAS may pre-assess your tax and send you a Notice of Assessment without requiring you to file. You'll receive an NFS notification letter if you qualify.
Action required: If you receive NFS but have additional income or reliefs to claim, you MUST still file by the deadline.
1
Tax Season Opens
e-Filing portal opens
15
e-Filing Deadline
Online filing via myTax Portal
18
Paper Filing Deadline
Physical form submission
Multiple convenient ways to pay your income tax:
Use CardUp to pay taxes with your credit card and earn rewards:
CardUp is licensed by the Monetary Authority of Singapore (MAS)
Set up GIRO and pay your taxes in up to 12 monthly interest-free instalments. Apply via myTax Portal before your tax payment is due. This helps with cash flow management without any additional charges.
Open an SRS account and maximize your tax savings. Our advisors can help you choose the right SRS investments for your goals.
Cross-border tax situations can be complex. Connect with experienced tax professionals who specialize in expat taxation.
Get Tax Consultation →Tax Experts
From SRS planning to cross-border tax obligations, our network of licensed tax professionals can guide you through the complexities.
Top Tax Rate
22%
One of Asia's Lowest