Do I need to pay personal income tax for working in Singapore?
In Singapore, personal income tax is collected and administered by the Inland Revenue Authority of Singapore (IRAS). According to Singapore's tax laws, the tax standards for resident and non-resident individuals are different. Resident individuals are required to pay personal income tax, while non-resident individuals are required to pay tax under different regulations.
Definition of Resident: Singapore Citizen, Singapore Permanent Resident, external person (other than company director) who resides or works in Singapore for 183 days or more throughout the year.
Definition of Non-Resident: A person who has resided in Singapore for more than 61 days but less than 183 days in the year preceding the tax year is subject to the tax rules of "Non-Tax Resident"; Those who have resided in Singapore for not more than 61 days in the year preceding the tax year are subject to the tax rules of "non-tax resident".
183 days is calculated: 183 days is actually the number of days you stay in Singapore during your employment in Singapore, including weekends and public holidays. If you leave Singapore for a reasonable reason during your employment, such as a holiday or business trip, it will also be counted as a period of stay.
1. Tax regulations for non-residents:
1.If you reside in Singapore for more than 61 days but less than 183 days in the year preceding the tax year, you are subject to 15% personal income tax; Company directors are subject to 22% personal income tax.
2.If you reside in Singapore for a period not exceeding 61 days, you are not required to pay tax; However, if you are a company director, you also need to pay 22% personal income tax.
2. Taxation regulations for residents:
Singapore's tax system is progressive, and the higher the income, the higher the tax payable. The personal income tax rate for the first 20,000 yuan of taxable income of taxpayers is zero, and the highest personal income tax rate is 22 at present, and there are different tax bands between these two ends.
For example, if the annual gross income is S$35,000, the tax amount for the first S$30,000 is S$200, and the tax amount for the balance of S$5,000 is S$5,000 x35% = S$175, so the total tax amount is S$375.
With an annual gross income of less than S$20,000, congratulations on not paying taxes!
Theoretically, even if your annual income is less than S$20,000, you still need to file an online return, but you don't need to pay unless you receive a letter from the Inland Revenue Department stating that you don't need to file a return.
Singapore tax filing season begins on March 1 of each year, and those who choose to file a paper** declaration need to submit it by April 15, and the electronic filing needs to be completed by April 18.