Did you know that as a Singapore Tax Resident, you pay nothing on these four major wealth builders?
In most countries, the government takes a “huge bite” out of your very first paycheck. It feels like the more you succeed, the more you are penalized. Singapore is different. It is designed to help you grow. Whether you’re landing your first big role on an Employment Pass or launching a global Headquarter, the rules here are designed to keep wealth in your pocket.
Business owners choose Singapore because the tax is much lower than in their home countries. While other nations charge 30% to 50%, a person earning $100,000 in Singapore only pays about 5.5% in actual tax.
| Annual Income (Singapore Dollars) | Tax Rate | Effective Tax Rate |
|---|---|---|
| Capital Gains | 0% | 0% |
| Foreign Income earned Overseas | 0% | 0% |
| Dividends | 0% | 0% |
| Bank Interest | 0% | 0% |
| Annual Income: $20,000 | 0% | 0% |
| Annual Income: $30,000 | 2% | 0.7% |
| Annual Income: $40,000 | 3.5% | 1.4% |
| Annual Income: $80,000 | 7% | 4.2% |
| Annual Income: $120,000 | 11.5% | 6.6% |
| Annual Income: $160,000 | 15% | 8.7% |
| Annual Income: $200,000 | 18% | 10.6% |
| Annual Income: $240,000 | 19% | 12% |
| Annual Income: $280,000 | 19.5% | 13.1% |
| Annual Income: $320,000 | 20% | 13.9% |
| Annual Income: $500,000 | 22% | 16.8% |
| Annual Income: $1,000,000 | 23% | 19.9% |
| Annual Income: above $1,000,000 | 24% | 19.9%^ |
Created by SBC Asia
The “Where, Why, and How” of international tax is a minefield. Between CRS (Common Reporting Standard) and double taxation risks, you need more than a form-filler, you need a CPA-level strategist.
IRAS is efficient but strict. Late filing leads to fines and travel bans.
We ensure your "Offshore" money stays offshore and compliant.
If your company is under the "Auto-Inclusion Scheme," we verify the data, so you don't overpay.
Stop guessing. At SBC Asia, we are your strategic partners.
Step 1
First, identify which group you belong to base on your Singapore Identification (TIN).
You are in this group if you have applied for and received any form of Singapore Identification. This ID acts as your TIN (Tax Identification Number)
You are in this group if you have NOT applied for any form of Singapore Identification.
Step 2
If you’re here for less than 183 days, you usually pay a flat rate (15% to 24%). No math involved, but usually a bit pricier. Ultimately just declaring as tax resident is better.
If you are physically here for 183 days or more in a calendar year, you are a Tax Resident.
Residents get the lowest rates and the most "discounts" (reliefs).
Step 3
| Category | Tax Resident (≥183 days) | Non-Resident (≥183 days) | Pure Foreigner |
|---|---|---|---|
| Who? | Stay ≥183 days. Citizens, PRs, EP, S Pass, Work Permit etc. |
Stay ≥183 days. Working for short projects. |
No Singapore ID (FIN/NRIC). No right to work in SG. |
| The Setup | Has a Singapore Tax ID (TIN). | Has a Singapore Tax ID (TIN). | No TIN number in Singapore. |
| Tax Rate | Progressive (0% – 24%). First $20,000 is tax-free. |
Flat 15% (salary) or Resident Rate. | $0 Tax (if no SG income). |
| The Perks | Full Reliefs (kids, parents, CPF). | No tax-free bracket. No personal reliefs. | Tourist GST Refunds. |
| Director Fees | Taxed at progressive rates. | Flat 24% (Withholding Tax). | N/A |
Always declare to IRAS.
If your income is not derived from Singapore, you should always declare it as offshore income in your own tax residence country.
⚠️ No TIN ≠ No Tax
A Tax Identification Number (TIN) in Singapore is simply your NRIC (for Singapore Citizens/PRs) or your FIN (for foreigners on a Work Pass). Even if you haven’t received a letter from IRAS yet, if you earned income here, you are requiring filing tax. We are here to help you plan so you don’t overpay or get hit with late fees.
What is Taxable? Singapore is famous for being “investor friendly.”
| Taxable Earnings in Singapore | Tax-Free |
|---|---|
| Your monthly salary & bonuses | Capital Gains: Profit from selling stocks/property |
| Housing or car allowances | Dividends: Your share of company profits |
| Director’s fees | Bank Interest: Most savings interest |
| Gains from stock options (ESOP) | Foreign Income: Most money earned overseas |
We use a Progressive System. It’s like a ladder, you only pay more as you climb higher.
“Tax Relief” is your best friend. The government gives you “rebates” for doing the right things:
The Singapore tax office (IRAS) is efficient, but they don’t like excuses.
• When: Every year by April 15 (Paper) or April 18 (Online).
How: Everything is done via Singpass.
If your company is under the “Auto-Inclusion Scheme,” your salary is already there. You just click “Submit.”
👉 Official Resource: Click & Visit IRAS Website
IRAS | TAX RESIDENT INDIVIDUALS CALCULATOR
IRAS | NON-RESIDENT INDIVIDUALS CALCULATOR
IRAS | INDIVIDUAL TAX INCOME RATES
IRAS | INDIVIDUAL WHAT IS TAXABLE
Singapore is built for those who want to keep what they earn. It isn’t just a tax haven; it is a stable, legal fortress for your wealth.
Here is the reality of doing business here:
While the headline rate is 17%, most small businesses actually pay less than 10% due to generous government exemptions.
When you sell your business or assets for a profit, you generally keep every cent. There is no tax on growth.
Once your company pays its small share, the dividends you take home are 100% tax-free.
In 2024 and 2025, we have seen a massive increase in Family Offices and International Headquarters choosing Singapore.
In other parts of the world, taxes are a hurdle. In Singapore, the tax system is your competitive advantage across Asia.
Ready to structure your business for maximum growth? Let’s talk about how these exemptions apply to your specific startup.
Singapore’s corporate tax rate is 17%, the effective tax rate for most companies is much lower due to government-backed exemptions and incentives. Most businesses miss out on significant savings simply because they don’t know which government schemes apply to them.
At SBC Asia, we provide strategic tax planning by reviewing your business structure to ensure you are fully utilizing every available tax relief in a compliant and efficient manner.
| Taxable Income (Singapore Dollars) | Effective Tax Rate |
|---|---|
| Business Profit: Up to $100,000 (Start up: 3 Years) | 6.4% |
| Business Profit: Up to $200,000 | 8.3% |
| Business Profit: above $200,000 | 17% |
| Capital Gains | 0% |
| Stock Gains | 0% |
| Exchange Gains | 0% |
| Dividends Tax | 0% |
| Foreign-Sourced Income (Overseas) | 0% |
Managing your money correctly starts with knowing what the government takes a cut off and what they leave alone.
| Sales & Trading Income | Money you make from selling products (E-commerce, wholesale, retail). |
| Service & Consultancy Fees | Fees you charge for your time, advice, or professional skills. |
| Investment Income | Dividends, interest, or rental income your company receives. |
| Royalties & Premiums | Income from licensing your brand, patents, or property. |
| Foreign Income "Brought In" | Money earned overseas that you transfer to a Singapore bank account or use to pay Singapore-based debts/expenses. |
| Capital Gains | Profit made from selling "fixed assets" like an office, a company van, or machinery |
| Stock Gains | Profits made from selling shares or equity investments |
| Exchange Gains (Capital) | Money made from currency fluctuations on non-trading transaction |
| Tax-Exempt Dividends | Most dividends paid by other Singapore companies |
| Foreign Income "Left Out" | Money earned overseas that stays in your offshore accounts and is never brought into Singapore |
In Singapore, “Deductible” means you can subtract these costs from your total income, so you pay tax on a smaller amount. The golden rule: The expense must be only for your business.
| Running the Office | Rent, water, electricity, and WiFi |
| Your Team | Salaries, bonuses, CPF, and staff training |
| Marketing | Facebook/Google ads, physical flyers, and website hosting |
| Professional Help | Accounting fees, secretarial fees, and legal fees (for business deals) |
| Tech & Software | Subscription renewals (SaaS) and software licenses |
| Travel & Transport | Public transport, Grab (for business meetings), and van/lorry maintenance |
| Private Cars | Expenses for "S" or "E" plated cars (including petrol, parking, and insurance) |
| Fines & Penalties | Traffic fines or late CPF interest. |
| Capital Costs | Buying a new office, a new car, or the initial setup cost of software. |
| Personal Life | Your personal gym membership, home groceries, or commuting from home to the office |
| Goodwill/Donations | General donations (unless they are to approved IPC institutions for a 250% deduction) |
If you are a newly incorporated private company, the government gives you a massive “Welcome Gift” for your first 3 consecutive years:
At SBC Asia, we provide strategic tax planning by reviewing your business structure to ensure you are fully utilizing every available tax relief in a compliant and efficient manner.
| Chargeable Income Tier | Exemption Rate | Max Exemption Amount |
|---|---|---|
| First $100,000 | 75% Exempt | $75,000 |
| Next $100,000 | 50% Exempt | $50,000 |
| Total First $200,000 | - | Max $125,000 |
Note: Any income above $200,000 is taxed at the prevailing corporate rate of 17%.
If your account is ready within 3 months of your financial year end, give government a "rough guess" of your profit.
It is due by 30 November every year.
By the end of March, you must declare all salaries and benefits you paid to your staff.
If your business is GST-registered, you must file every 3 months (quarterly).
No Business? No Profit? You still file.
Even if your company was dormant (did no business) or suffered a loss, you are still legally required to file it on time.
The Penalty: Missing the deadline is a serious offence. It can lead to penalties of up to $5,000 or estimate 4 times your profit.
Singapore uses a Single-Tier System. This means once the company pays its corporate tax, the profit belongs to you.
When the company pays you your share, it’s 100% tax-free in your hands.
You earned it, the company settled it, and now it’s yours to keep.
Keep all your business receipts, invoices, and bank statements for 5 years. You don’t need to submit them, but you must have them ready if IRAS asks.
Let’s Build Your Strategy
Tax shouldn’t be a headache that keeps you up at night; it should be a tool to protect your profit. Whether you just started today or you’ve been around for years, we make sure you stay legal and keep more of your money.
Want us to take a look at your books and see if you’re missing any tax savings?
Our multilingual experts deliver fast incorporations and practical business solutions through structured in house workflows.
Our in house system delivers error-free legal documents and cross border compliance across jurisdictions.
Clear, public pricing with all fees disclosed upfront, no hidden charges.
All company data and legal documents are securely stored and protected within our secure server systems.
Practical solutions for every business challenge, supported by step by step guidance and trusted business banking referrals.
Our in house professionals ensure full compliance with local laws across jurisdictions, supported by in house systems and timely statutory deadline reminders.
I would like to commend Joey Tan (Senior Customer Service Executive) for her exemplary service. She is very efficient, helpful, and knowledgeable. She is able to provide answers promptly, and for any matters she is unsure about, she will check with her team or the legal department and revert to us without delay.
Overall, SBC provides very good services, and we truly appreciate the professionalism and responsiveness of the team. Kudos!!
I’ve been using SBC Corporate Services since 2019, and they have always been reliable and professional. The team provides clear guidance, handles matters efficiently, and has remained consistent over the years. A dependable corporate service provider I would recommend.
Exceptional Service for Company Incorporation
I recently had the pleasure of working with SBC to register and incorporate my new company, and I couldn't be more satisfied with the experience. The entire process was hassle-free, and they were incredibly generous and patient in answering all my questions about corporate taxes.
Their service offers great value for money, and I was impressed by the attention to detail. They provided me with a comprehensive pack containing all my corporation documents, neatly organized in a folder. I also received two company chops in different formats, which I’m sure will come in handy.
Overall, SBC made the incorporation process seamless, and I highly recommend their services to anyone looking to start a business!
I highly recommend this business for their professionalism and attentive service rendered to me since the service quality is truly exceptional to set up a business for us in a short period of time. Moreover, the team is extremely knowledgeable and helpful, it is a delight to work with them.
Reliable company who have efficiently and hassle free handled our business in Singapore for the last 5 years.
Exceptional Service for Company Incorporation
I recently had the pleasure of working with SBC to register and incorporate my new company, and I couldn't be more satisfied with the experience. The entire process was hassle-free, and they were incredibly generous and patient in answering all my questions about corporate taxes.
Their service offers great value for money, and I was impressed by the attention to detail. They provided me with a comprehensive pack containing all my corporation documents, neatly organized in a folder. I also received two company chops in different formats, which I’m sure will come in handy.
Overall, SBC made the incorporation process seamless, and I highly recommend their services to anyone looking to start a business!
Paul and Aries from SBC Corp are very professional in their services in helping us to setup our BVI and Cayman companies. I especially like their provision of the opening kit which looks nice and easy for safekeeping of all the documents. I strongly recommend them.
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