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Calculate Income Tax Rates 2015

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Income tax rates prevailing in Singapore are low and affordable. 0% tax rate is applicable for Singapore residents, earning income below S$20,000. Besides, individuals earning more than S$320,000 will have to pay income tax at 22% rate. Non-residents are charged at the flat rate of 15% or the resident’s rate, whichever is higher.

Singapore is known for offering the most attractive and flexible tax rates as compared to other nations in the world. Taxes are levied on the personal income based on increasing amount or grade. The tax rates are calculated from 0% to 22%. The best part is no tax is levied either on income obtained outside Singapore or on capital gains. There is no estate tax as well. Tax is calculated on the income generated between 1st of January to 31st of December.

Updates for Calculating Singapore Income Tax Rates 2015

  • To calculate income tax rates for the current Year of Assessment (YA) 2015, all individual taxpayers, who happens to be local Singapore residents, will enjoy income tax rebate.
  • As part of the Jubilee Celebration, all Singapore resident taxpayers will receive an income tax rebate of 50% against payable tax, capped at S$1000 for the Year of Assessment 2015.
  • The offered 50% tax rebate is applicable on the payable tax after calculating Double Taxation Relief (DTR) and other credits; but before parenthood tax rebate set-off.
  • No taxpayer has to directly apply for the tax rebate, as IRAS has made provisions to directly compute the rebate.

Key Points to Calculate Income Taxes in Singapore

  • The payable income tax amount depends on the status of the individual. The tax structure is different for residents and non-residents.
  • If an individual is earning S$320,000 PA, he is liable to pay 22% of tax rate. This is the maximum rate to be paid by an individual.
  • Non residents are liable to pay 15% flat tax rate. They may have to pay the resident tax rates, if it is higher than the former.
  • Irrespective of the funds received anywhere in the world, if it is generated with an employment in Singapore are taxable in accordance with the government rules.
  • Income from housing and stocks, besides salary and perks are counted under taxable income.

Chart of comparison for the various chargeable incomes and the tax rates for resident individuals as per the changed tax treatment in Budget 2015

New Tax Structure with Effect From Year of Assessment 2017
 

Chargeable Income ($)

Tax Rate (%)

Gross Tax Payable ($)

On the first
On the next

20,000
10,000

0
2

0
200

On the first
On the next

30,000
10,000


3.5

200
350

On the first
On the next

40,000
40,000


7

550
2,800

On the first
On the next

80,000
40,000


11.5

3,350
4,600

On the first
On the next

120,000
40,000


15

7,950
6,000

On the first
On the next

160,000
40,000


18

13,950
7,200

On the first
On the next

200,000
40,000


19

21,150
7600

On the first
On the next

240,000
40,000


19.5

28,750
7,800

On the first
On the next

280,000
40,000


20

36,550
8,000

On the first
In excess of

320,000
320,000


22

44,550

 

The above chart is showing the latest numbers to calculate income tax rates, as per the Singapore Budget 2015 released on 23 February 2015. Income tax rates for the lower income group will remain as it is, but the high tier income tax rates are revised from 20 to 22%.

Filing personal tax returns is mandatory, if your annual income is S$22,000 or more. No income tax is applicable if your annual income is equal to or below S$22,000. However, you might still need to file a tax return, if Singapore tax department has informed you to submit your tax return.

**The information provided is for general reference only. All the precautions have been taken to include the authentic information. Before taking any action based on the information provided, SBS Consulting highly recommends to contact us personally for further elaboration.

Please feel free to contact us on +65 6536 0036 or drop in an email at info@sbsgroup.com.sg

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