Singapore’s tax system is renowned for its competitive tax rates and is designed to support the nation’s economic and social goals. The system is administered by the Inland Revenue Authority of Singapore (IRAS) and plays a crucial role in nation-building by funding government spending to improve the community, environment, and economy.
The tax system for individuals and corporations is distinct and well-structured. Personal income tax rates are progressive, with the amount of tax increasing in proportion to the income. For the Year of Assessment (YA) 2024, the tax rates for resident individuals range from 0% to 24%, depending on the chargeable income. Non-residents are taxed at a flat rate of 22%, which will also increase to 24% from YA 2024.
On the corporate side, Singapore maintains a competitive flat tax rate of 17% for companies, which applies to chargeable income, i.e., taxable revenues after deducting allowable expenses and other allowances. This one-tier tax system ensures that the profits distributed by companies as dividends to shareholders are not subjected to a second layer of tax.
The Inland Revenue Authority of Singapore (IRAS) provides comprehensive guides and resources for both personal and corporate tax matters, including filing obligations, tax residency criteria, and available tax rebates and exemptions. It’s important for individuals and businesses to stay informed about their tax responsibilities to ensure compliance and optimize their tax positions.
For more specific Information and calculations, please find below links:
