Singapore Income Tax Guide 2026: Resident Rates 0–24%, No CGT & Expat Employment Pass

Singapore is consistently ranked among the world's most business-friendly and tax-efficient jurisdictions. Low progressive income tax rates (0–24%), no capital gains tax, no dividend tax, and a territorial tax system make Singapore highly attractive to global professionals, entrepreneurs, and investors. Singapore's top income tax rate of 24% is among the lowest in Asia for high earners.

This guide covers Singapore's resident and non-resident tax rates, the Employment Pass system, CPF contributions, filing requirements, and key considerations for US expats who must continue filing US returns regardless of Singapore residency.

Singapore Resident Income Tax Rates

According to IRAS (Inland Revenue Authority of Singapore), resident income tax rates for Year of Assessment 2025 (income earned in 2024) are:

Note: The top rate rises to 24% on chargeable income above SGD 1,000,000 effective from Year of Assessment 2024 onwards.

Who is a Tax Resident?

You are a Singapore tax resident if you are a Singapore citizen, Singapore Permanent Resident (PR), or a foreigner who has worked in Singapore for 183 days or more in the year preceding the Year of Assessment.

Non-Resident Tax Rates

Non-residents (those who work in Singapore for fewer than 183 days in the preceding year) are taxed differently:

• Employment income: 15% flat (or the resident rate, whichever is higher)
• Director's fees and consultant fees: 24%
• Other income: 24%

The 60-Day Exemption

Foreigners working in Singapore for 60 days or fewer in a calendar year are completely exempt from Singapore income tax on their Singapore employment income. This short-stay exemption does not apply to company directors or public entertainers.

183-Day Residency Test

Foreigners who work in Singapore for 183 or more days in a calendar year are taxed as residents for that entire year — the more favourable progressive resident rates apply (0–24%) rather than the flat 15% non-resident rate. The 183-day test is applied to the calendar year, not a rolling 12-month period.

Territorial Tax System

Singapore taxes only Singapore-sourced income. Foreign-source income remitted to Singapore is generally not taxable, with limited exceptions for certain companies. For individuals:

• Foreign salary: Not taxable in Singapore if earned outside Singapore
• Foreign dividends: Not taxable when remitted to Singapore (with some corporate exceptions)
• Foreign capital gains: Not taxable
• Foreign rental income: Generally not taxable for individuals

This makes Singapore very attractive for high-net-worth individuals and those with significant overseas investment portfolios — the overseas investment returns can be brought to Singapore without triggering Singapore income tax.

No Capital Gains Tax

Singapore has no capital gains tax. Profits from selling shares, property, cryptocurrency, or other assets are not taxable (unless the taxpayer is a professional trader — frequent systematic buying and selling of assets may be treated as business income subject to income tax, which IRAS assesses case by case).

Employment Pass and Work Passes

Foreigners working in Singapore require a work pass issued by the Ministry of Manpower (MOM). The main categories:

Employment Pass (EP)

For professionals, managers, and executives. Requirements: minimum fixed salary of SGD 5,000/month (SGD 5,500 for financial services) — thresholds increase with experience. Must hold a degree-level qualification or equivalent. New EP applicants must pass the COMPASS scoring system (Complementarity Assessment Framework) from September 2023, assessing salary, qualifications, diversity, and employer track record.

S Pass

For mid-level skilled workers. Minimum SGD 3,150/month (SGD 3,650 for financial services). Quota limits apply: employers can only hold a certain percentage of S Pass holders.

EntrePass

For entrepreneurs starting a qualifying business in Singapore. No minimum salary but must meet innovative startup criteria and funding/IP requirements.

All pass holders pay income tax at the applicable rate (resident if 183+ days, non-resident otherwise). Only Singapore Citizens and Permanent Residents contribute to CPF — Employment Pass holders do not.

CPF: Central Provident Fund

CPF is Singapore's compulsory savings scheme for citizens and permanent residents. It covers retirement, healthcare (Medisave), and housing. Employment Pass holders (non-PR foreigners) do NOT contribute to CPF.

CPF Rates for Citizens/PRs Under Age 55

• Employee contribution: 20% of ordinary wages
• Employer contribution: 17% of ordinary wages
• Combined: 37% on ordinary wages up to SGD 6,800/month ordinary wage ceiling (2024)

CPF Benefits

Contributions go into three accounts: Ordinary Account (OA — housing, education, investments); Special Account (SA — retirement); Medisave (healthcare). OA and SA earn guaranteed interest (OA: 2.5%; SA: 4%). At age 55, a Retirement Account is created. CPF LIFE provides monthly payouts from age 65 for life. PRs who permanently leave Singapore can withdraw CPF balances under the CPF Withdrawal scheme.

Filing Requirements and Key Dates

Singapore's tax year is the calendar year (1 January – 31 December). Filing process:

1. IRAS issues tax returns (Form B1 for residents, Form M for non-residents) in February/March
2. Most residents file online via myTax Portal (mytax.iras.gov.sg)
3. Filing deadline: 18 April (online) or 15 April (paper)
4. Tax bills (Notices of Assessment) issued May–September
5. Tax payable within 30 days of assessment (or GIRO instalment plan)

Many employees are enrolled in the Auto-Inclusion Scheme (AIS) — employers submit income information directly to IRAS and tax returns may be pre-filled. Those with simple tax situations (single employer, no investment income) may simply need to verify and submit.