The Inland Revenue Authority of Singapore (IRAS) acts as an agent of the government and administers, assesses, collects and enforces payment of taxes. The IRAS also advises the government and represents Singapore internationally on matters relating to taxation.
A Singapore citizen or a Singapore Permanent Resident who returns to work here will be liable to pay income tax. You will be required to complete and submit the relevant tax form that will be mailed to you.
Your employer may furnish your salary details to IRAS directly and this portion of your income need not be included in your tax return. However, you must still submit the tax form and report other income you received in Singapore in the previous year.
Should your employer not give IRAS your salary details, you should be issued with the IR8A form, which is the form that shows the gross employment income that you have earned in the previous year. You must include the IR8A with your completed tax form. The chargeable income, that is, your income after deduction of personal reliefs, will be taxed at resident rates of between 0% and 20% from Year of Assessment 2007. The resident rates only apply to a taxpayer who is considered a tax resident, that is, he has been in Singapore for more than 183 days or can prove so by other qualitative means in the previous year.
A person is considered a non resident when working (or living) in Singapore for less than 183 days per year. A non resident’s employment income is taxed at 15 percent or the resident rate, whichever is higher. Only income derived in Singapore will be taxable. Non residents will not be considered for Personal Reliefs.
- Foreigners who are working in Singapore on a Employment Pass will be taxed regardless of the time spent working here.
- Foreigners who has rental income from a property in Singapore, director’s fee or all other incomes will be taxed at 20 percent of the respective income.
- Foreigners who are on short term employment of less than 60 days per calendar year are exempted from income tax for their employment income.
- Foreigners whose main country of residence has an Avoidance of Double Taxation Agreement with Singapore are exempted from income tax for their employment income.
Reliefs and Rebates
As a tax resident, a person is taxed on all income earned in Singapore including overseas income which is transmitted, remitted or otherwise brought into Singapore.
There are personal reliefs given under the Income Tax Act. Income without personal reliefs are taxed on a graduated scale from 0% – 20%.
Tax reliefs and rebates are given in recognition of a person’s efforts. Instead of compensating for certain type of expenses fully, reliefs and rebates are given to promote certain social objectives.
There are reliefs available to encourage family formation, retraining, training and upgrading of skills as well as reliefs given to those serving National Service.
Submitting Your Income Tax
You can submit your tax return by post or through e-filing at www.iras.gov.sg, or by phone. If you fail to submit your return by 15th April or to pay your taxes within the specified due date, you will be penalised. To avoid late payment penalties on your tax payable, you may arrange to pay your taxes by GIRO or log on to do it electronically atwww.iras.gov.sg for immediate payment. Do remember to print the acknowledge copy for your own records.
For more information, please contact:
Taxpayer Services Centre
Inland Revenue Authority of Singapore
1st Storey, Revenue House,
55 Newton Road, Singapore 307987
|Tax Hotline for General Enquiries & Payment Enquiries||Tel: 1800 356 8300|
|Business Income Tax Hotline||Tel: 1800 356 8611|
|Corporate Income Tax Hotline||Tel: 1800 356 8622|
|GST (Goods and Services Tax) Hotline||Tel: 1800 356 8633|
|Property Tax Hotline||Tel: 1800 356 8600|
|Tax Clearance Hotline||Tel: 1800 356 8655|
|Inland Revenue Information Service (IRIS)||Tel: 1800 356 8311|
|Fax Express Service||Tel: 1800 356 8677|