+65-6536 0036 +65-6536 0036

Snapshot of Personal Income Tax Rates 2012

Calculate_Income_Tax_Rates2012

Singapore has one of the most competitive taxation rates in the world. After deducting personal reliefs, personal income taxes are levied on a graduated scale which starts at 0% and is capped at a favourable 20%. There is no tax on income derived and received outside of Singapore, and no capital gains or estate taxes to worry about.

Employees earning $20,000 and below will not be taxed at all. Beyond that, on the next $10,000, only a minimal 2% tax will be charged with a gross tax payable at $200. High income employees earning in excess of $320,000 per annum will only be taxed at a maximum rate of 20% and not more. This is good news for those with high income earning in excess of $320,000 per annum. Because of this rule and tax rate, businessmen and professionals around the world find Singapore a very attractive place to work and earn an income.

Singapore taxation rate is very attractive and affordable as it is one of the lowest in the world, which explains why centimillionaires (people with wealth worth more than US $100 million) and other high net worth individuals migrate to this small island state to set up business here. They are able to get as much profit as possible compared to doing business around Singapore’s surrounding neighbours.

Below is the chart of comparison for the various chargeable income and the tax rates for gainfully employed professionals and businessmen.

Year of Assessment 2012
Chargeable IncomeRate (%)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
On the next
80,000
40,000
40,000

11.5
15
3,350
4,600
6,000
On the first
On the next
On the next
160,000
40,000
120,000

17
18
13,950
6,800
21,600
On the first
In excess of
320,000
320,000

20
42,350

 

IRAS (Inland Revenue Autority of Singapore) has revised the income tax rate for 2012. Now lower income groups can enjoy lesser tax rate compare to year 2007 to 2011.

Individuals resident in Singapore are taxed on a progressive tax rate as listed above. Filing of personal tax return is mandatory if your annual income is S$22,000 or more. You do not need to pay tax if your annual income is less than S$22,000. However, you may still need to file a tax return if you have been informed by Singapore tax department to submit your tax return.

Get A Free Quotation to Get Started with this Service. Get Started

I am interested in

Goods & Services Tax (GST)ECI (Estimated Chargeable Income)Personal Tax in SingaporeCorporate Tax in SingaporeSingapore Property TaxDouble Tax TreatiesSingapore Withholding TaxSingapore Tax for Non-ResidentsTaxation for Singapore Residents






I am interested in :

Company RegistrationAccounting ServicesTaxation ServicesCorporate SecretarialAuditing ServicesPayroll ServicesBookkeeping ServicesVisas and Passes ServicesXBRL Filing