Income tax is levied on income arising in Singapore whether or not the individual is resident in Singapore. Income from foreign sources is taxable in Singapore only if the Singapore resident receives such income through a partnership in Singapore.
Singapore residents pay tax on income on a progressive scale and various tax deductions are allowed. The tax rates are:
Non-residents are taxed at a rate of 22%, except for employment remuneration which is taxed at 15% or on a progressive scale established for residents, with tax deductions applied if the latter amount is higher.
Capital gains from the disposal of assets (Capital Gains) are not taxable.
Dividends are not taxable except for dividends from foreign sources if they are received by a resident through a partnership in Singapore.
Interest income from Singapore banks and financial companies with the necessary licences is not taxable.
Income from foreign sources is not taxable unless it is received by a resident through a partnership in Singapore.
Companies, both resident and non-resident, with operations in Singapore are subject to income tax on income generated in Singapore and on foreign-source income when generated in Singapore (or when deemed to be generated in Singapore).
The income tax rate is 17%. Partial tax exemption up to certain small amounts and other benefits are available.
Tax is not levied on capital gains from the disposal of assets (capital gains). Such gains may be reclassified as trading gains if the holding period is short, the frequency of transactions is high, etc. Gains from the sale of shares are tax-free until the end of 2027 if the company held at least 20% of the ordinary shares for at least 24 months. The exemption does not apply to shares in real estate companies and profits of insurance companies.
Dividends received from Singapore companies are not taxable.
Dividends from foreign companies may be exempt from tax under certain conditions, in particular, if dividends are distributed from profits on which tax was paid, the standard tax rate in the jurisdiction of the subsidiary is not less than 15%.
There are no CFC rules in Singapore.
No withholding tax is withheld at source on dividend payments. Tax is withheld at a rate of 15% on interest payments and 10% on royalties.
Tax rates can be reduced in accordance with double taxation treaties (DTAs).
GST is an indirect tax similar to VAT. The rate of GST is 7%.
Mandatory pension contributions are payable on citizens and permanent residents of Singapore. As a general rule, employers pay a contribution rate of 17%, employees pay 20% on employment-related monthly remuneration up to SGD 6 000 (Singapore dollar) as well as additional employment-related remuneration (e.g. annual bonuses) up to certain limits. The rates are lower for those aged 55 years and above and those with monthly remuneration up to SGD 750.
Employers must pay a monthly skill development levy at a rate of 0,2% on an employee's remuneration up to SGD 4 500 but not less than SGD 2.
Tax is payable annually on land and buildings. Tax rates range from 0% to 16% for owner-occupied dwellings and from 10% to 20% for other dwellings. The rates depend on the value of the property. Commercial (non-residential) properties are taxed at 10%.
Stamp duty is payable on paper and electronic documents relating to real estate, leases and shares.
When purchasing real estate, the buyer pays stamp duty at the rate of 4%. In addition, stamp duty is levied on the seller at a rate of up to 30% and additional stamp duty on the buyer at a rate of up to 15%, the rates depend on the type of property, resident/non-resident status, length of ownership, number of properties in ownership. The base is the transaction price or market value if higher. An additional asset transfer fee is charged, under certain conditions, also for transactions involving shares in companies owning residential real estate in Singapore.
For lease transactions, stamp duty is levied generally at a rate of 0,4%, the base being determined differently depending on the length of the lease.
For instruments executing share transactions, stamp duty is levied at a rate of 0,2% of the purchase price or market value of the shares if higher.
Singapore has entered into 98 Double Tax Treaties (DTC) and one Tax Information Exchange Agreement (TIEA) with the following jurisdictions:
98 DTCs: Albania, Armenia, Australia, Austria, Bahrain, Bangladesh, Barbados, Belarus, Belgium, Bermuda, Brazil, Brunei, Bulgaria, Cambodia, Canada, Chile, China, Cyprus, Czech Republic, Denmark, Ecuador, Egypt, Estonia, Ethiopia, Fiji Islands, Finland, France, Georgia, Germany, Ghana, Greece, Guernsey, Hong Kong, Hungary, India, Indonesia, Ireland, Isle of Man, Israel, Italy, Japan, Jersey, Jordan, Kazakhstan, Korea, Republic of, Kuwait, Lao People’s Democratic Republic, Latvia, Libya, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Mauritius, Mexico, Mongolia, Morocco, Myanmar, Netherlands, New Zealand, Nigeria, Norway, Oman, Pakistan, Panama, Papua New Guinea, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, Rwanda, San Marino, Saudi Arabia, Serbia, Seychelles, Slovak Republic, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, Thailand, Tunisia, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Uzbekistan, Vietnam.
1 TIEA: United States.
Singapore has also signed and ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The Multilateral Convention entered into force for Singapore on April 1, 2019.
In general, there are no restrictions under currency controls in Singapore.
