How to Pay Taxes in Singapore: A Quick Guide for Taxpayers

Most of us who make money in Singapore pay taxes as part of our commitment to the country’s development. Tax filing might be complex at times, but it doesn’t have to be. We’ve put together some answers to frequently asked questions about taxes imposed on tax residents, including how to pay taxes in Singapore. 

How to pay taxes in Singapore

There are different types of taxes imposed on every taxpaying individual in Singapore. 

Keep reading to figure out how to pay different taxes in Singapore

Personal Income Tax

According to IRAS, all individuals earning, deriving, or receiving income in Singapore must pay income tax every year unless specifically exempted under the Income Tax Act or an Administrative Concession. 

You will be obligated to pay tax for any given Year of Assessment (YA) if the following conditions are met:

• You derive or receive income in Singapore. The income can be from a full-time job, as a sole proprietor, freelancer, etc., or investments in Singapore.
• You are employed outside of Singapore yet have a Singapore work permit.
• You have a yearly gross income of at least $22,000, or/and
• You are a Singapore Citizen (SC) or a Permanent Resident (PR) who regularly visits Singapore, or
• You are a foreigner who has spent 183 days or more in Singapore (excluding company directors) in the year preceding the YA.

What is taxable and what isn’t?

There are two types of income: taxable and non-taxable. Income that is subject to taxation is referred to as taxable income. During the taxation procedure, non-taxable income is not taken into account. Some examples of taxable and non-taxable income are shown below.

How much income tax do I need to pay?

Singapore currently has a progressive resident tax rate that starts at 0% and rises to 22% above S$320,000. However, beginning in YA 2024, the top marginal personal income tax rate will be raised to ensure more progressivity. Chargeable income of more than $500,000 but less than $1 million will be taxed at a rate of 23%, while the income of more than $1 million will be taxed at a rate of 24%.

Below is a table of personal income tax rates based on income: 

Source: IRAS

When do I need to file for income tax

Tax returns can be filed beginning at the end of the first quarter of the year, and you can do so electronically through the IRAS website from March 1 to April 18. The assessment is for revenue earned the previous year — for example, you would file taxes in 2022 for income received or derived in 2021. If you want to file your taxes on paper, you must submit your completed tax form to the IRAS headquarters by April 15.

How do I pay my income tax in Singapore?

How to pay income tax in Singapore is one of the most often asked questions from taxpayers. The majority of taxpayers pay their taxes using GIRO, a one-time payment, or interest-free payments over a 12-month period. You can pay using electronic payment methods like AXS, internet banking, phone banking, mobile banking (PayLah and PayNow applications), and SAM, or you can pay using NETS at a post office.

For additional information about Singapore’s individual income tax, please refer to Singapore Income Tax for Foreigners and Permanent Residents

Corporate Tax

Singapore’s headline corporation tax rate is set at 17%. This tax is imposed on the chargeable income of a business.

Chargeable income is calculated as the difference between a company’s taxable revenues and deductible expenses. Any recurring or ongoing expense earned from Singapore or remitted into the country is treated as taxable revenues.

Singapore follows a territorial tax system which means that a firm is only liable to pay tax on (A) income earned in or generated from Singapore or (B) income received in Singapore from outside Singapore that results from:

• Gains or profits from any trade or business;
• Investments by the company (such as income received as dividends, interest, and rents);
• Royalties, premiums and any other profits of similar nature; and
• Other gains of an income nature.

However, the above income is subject to several exemptions and tax reliefs that lower the taxable income of a Singapore company:

• Qualified businesses can take advantage of a variety of general and sector-specific tax incentives to lower or eliminate their corporate tax.
• Qualified foreign-sourced income is exempt from taxation in Singapore.
• Due to Singapore’s extensive network of double-taxation avoidance treaties with other nations, if you have already paid tax in a treaty foreign country on income remitted to Singapore, you will not be taxed again in Singapore.
• The Singapore government offers a variety of various grants and incentives to help businesses decrease their tax burden.

Note: As a result, while the headline tax rate on taxable income is a flat 17 percent, the effective rate for most businesses is much lower than 17 percent due to the many tax exemptions and incentives detailed above.

What are the documents required for filing corporate tax in Singapore?

Companies in Singapore are required to file an annual corporation tax return with IRAS. Companies must file two corporate income tax forms: the ECI Form (estimated chargeable income) and the Form C (Corporate Income Tax Return). Smaller companies that meet specific criteria can use a simplified form of Form C called Form C-S.

The ECI form must be filled within three months from when the company’s financial year ends unless the company fulfills certain conditions and is exempt from filing ECI. 

On the other hand, the Form C must be filled by November 30 of the year following the year of tax period. If a company has no revenue or income during a specified financial period (a dormant company) and does not expect to receive income or commence business within the next two years, it can apply to IRAS to be exempted from filing its income tax return (Form C-S/ C).

With the help of a Singapore tax filing agent, the procedure of filing corporate tax returns can be streamlined. By hiring one, you can easily prevent penalties that can occur due to failure to file your corporate tax. If such a thing happens, fines of up to S$1,000 and S$10,000 can be imposed on your company and its officers, respectively.

How do I pay my corporate tax in Singapore?

Most companies in Singapore pay their corporate tax using GIRO. Please, note that IRAS does not offer credit cards as a payment mode as the transaction cost charged by the credit card service providers is high. You can use our corporate tax calculator to figure out how much money you should pay.

If you are unable to pay your tax due to unexpected or exceptional circumstances, IRAS may be able to provide you an appropriate payment solution, such as a longer installment plan. You can request this to IRAS if you face the following situations:

• High medical expenses
• Loss of employment or substantial reduction in income
• Business under financial distress (e.g., facing lawsuits from creditors or business closure)

You may appeal for a longer payment plan via the ‘Apply for Payment Plan’ digital service at mytax.iras.gov.sg. Note that installment plans are only available if you choose to pay via GIRO. However, if you do not have an existing GIRO arrangement, you can customize your payment plan in two simple steps:

• Fill out the Master GIRO form on paper and mail it to IRAS, and
• Submit your payment proposal online the same day.

IRAS will consider your request and notify you of the conclusion within 15 working days. You may also be asked for more information for IRAS to better understand and assess your situation.

For more details about corporate tax filing in Singapore, please read the following guide:

An Introduction to Singapore Corporate Tax Filing

Goods & Services Tax (GST)

GST is a consumption tax by a business each time it sells a product or service to another business or an individual inside Singapore’s territory. In general, each business in the supply chain, from producer to retailer, charges GST on its sales and is permitted to deduct the GST it paid on its purchases from this amount. Thus, each business only pays GST on the value it brings to the commodity or service.

What goods and services are subjected to GST?

All goods and services are taxable and known as taxable supplies. Some commodities, however, are specifically exempt from GST under the law. Financial services and the sale or lease of residential properties are among the products that are exempt.

When is it compulsory to register for GST?

If your annual turnover from the sale of taxable goods and services reaches or is projected to exceed S$1 million, you must register to collect GST. If the majority of your goods or services are exported or supplied internationally (zero-rated supplies), this requirement may be waived.

How do I charge and claim GST?

Only GST-registered businesses can charge and claim GST from their effective date of GST registration.  Non-GST registered businesses are unable to charge or claim GST.

If you’re registered for GST, you’ll have to charge the current GST rate on all taxable supplies, with the exception of goods that are subject to customer accounting. Output tax refers to the GST you charge and collect. Within a month of the end of the accounting period, the output tax must be paid to IRAS. 

How do I pay GST in Singapore?

Like other tax payments, GIRO is the preferred payment method for GST. Those facing difficulties in paying their GST can also reach out to IRAS before the payment due date to ask for an installment plan. 

After making a payment, authorized persons for the GST payment within Corppass can log in to myTax Portal to view GST account details to see if the payment has been successful. 

For more information on how GST works and how to register for it, please read our guide below:

What You Need to Know About Singapore GST

Property Tax

Singapore property tax applies to all properties in the city-state. Private houses, HDB apartments, factories, offices, and vacant land are all included. Property taxes are calculated as a percentage of the property’s annual value, which is  the estimated gross annual rent of the property if it were to be rented out, excluding furniture, furnishings, and maintenance fees. 

What are tax rates for owner-occupied residential properties?

Condominiums, HDB flats, and other residential properties where you must “physically dwell in the property” are examples of owner-occupied residential properties. These properties enjoy the following owner-occupier tax rates.

What are tax rates for non-owner-occupied residential properties?

Some examples of non-owner-occupied residential properties are condominiums, HDB flats , or other residential properties. The following tax rates apply to such properties:

When do I have to pay my property tax?

You must pay your property tax by January 31 each year. IRAS will calculate the annual tax you must pay and issue you a bill. Your bill will include instructions on how to pay your property tax.

How do I pay my property tax in Singapore?

IRAS has a compilation of ways to pay property tax in Singapore.  They offer both online and in-person options for paying property taxes.

IRO (one-time or 12 installments), PayNow QR, internet banking, the AXS app, internet banking fund transfer, or Telegraphic Transfer are all options for paying property taxes online (if you do not have a Singapore-based bank account).

If you don’t want to pay property tax online, you can opt to pay at an AXS machine or SingPost branch.

For more detailed information on Singapore property tax, please refer to the following guide:

A Simple Guide To Property Tax In Singapore

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