Last Updated: April 2026
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.
According to IRAS (Inland Revenue Authority of Singapore), resident income tax rates for Year of Assessment 2025 (income earned in 2024) are:
| Chargeable Income (SGD) | Rate | Gross Tax Payable |
|---|---|---|
| First $20,000 | 0% | $0 |
| Next $10,000 ($20,001–$30,000) | 2% | $200 |
| Next $10,000 ($30,001–$40,000) | 3.5% | $350 |
| Next $40,000 ($40,001–$80,000) | 7% | $2,800 |
| Next $40,000 ($80,001–$120,000) | 11.5% | $4,600 |
| Next $40,000 ($120,001–$160,000) | 15% | $6,000 |
| Next $40,000 ($160,001–$200,000) | 18% | $7,200 |
| Next $40,000 ($200,001–$240,000) | 19% | $7,600 |
| Next $40,000 ($240,001–$280,000) | 19.5% | $7,800 |
| Next $40,000 ($280,001–$320,000) | 20% | $8,000 |
| Above $320,000 | 22% | — |
Note: The top rate rises to 24% on chargeable income above SGD 1,000,000 effective from Year of Assessment 2024 onwards.
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-residents (those who work in Singapore for fewer than 183 days in the preceding year) are taxed differently:
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.
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.
Singapore taxes only Singapore-sourced income. Foreign-source income remitted to Singapore is generally not taxable, with limited exceptions for certain companies. 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.
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).
Foreigners working in Singapore require a work pass issued by the Ministry of Manpower (MOM). The main categories:
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.
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.
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 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.
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.
Singapore's tax year is the calendar year (1 January – 31 December). Filing process:
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.
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Open SGD & USD Accounts →No. Singapore has no capital gains tax. Gains from selling shares, property, funds, cryptocurrency, or any other asset are not subject to income tax in Singapore. However, if you regularly and systematically trade assets as a business activity, IRAS may treat the gains as trading income (business income subject to income tax). This determination is based on factors including frequency of transactions, nature of the assets, holding period, and financing methods. Most individual investors are not classified as professional traders.
The Employment Pass (EP) is Singapore's work visa for foreign professionals. Holding an EP does not automatically make you a tax resident — residency depends on the 183-day rule. If you work in Singapore for 183 days or more in a calendar year, you are taxed at resident progressive rates (0–24%) for that entire year. Below 183 days, non-resident rates apply (15% or higher resident rate). EP holders who are non-residents do not contribute to CPF. Most EP holders who work full-time in Singapore year-round will easily exceed the 183-day threshold and be taxed as residents.
Yes — US citizens are taxed on worldwide income regardless of Singapore residency. US citizens in Singapore must file US federal tax returns annually. Key mechanisms: Foreign Earned Income Exclusion (FEIE, Form 2555) — excludes up to $130,000 (2025) of Singapore employment income from US federal tax. Foreign Tax Credit (Form 1116) — credits Singapore income tax paid against US liability. Since Singapore's effective rates are often lower than US rates (24% top vs 37% US top), US citizens earning above the FEIE threshold may owe residual US tax. FBAR required for Singapore bank accounts exceeding $10,000. FATCA reporting applies to Singapore financial accounts.
Singapore uses a one-tier tax system for dividends — company profits are taxed at the corporate level (17% flat corporate tax rate), and dividends paid to shareholders from those taxed profits are completely tax-free in the hands of shareholders. There is no withholding tax on dividends paid by Singapore companies to resident or non-resident individual shareholders. This is significantly different from systems like the UK (dividend allowance then taxed) or the US (qualified dividend rate 0–20%). Foreign dividends remitted to Singapore by individuals are also generally not taxable under the territorial system.
CPF is only applicable to Singapore Citizens and Permanent Residents — Employment Pass holders (non-PRs) do not contribute to CPF and therefore have nothing to withdraw. Permanent Residents who are renouncing PR status and leaving Singapore permanently can withdraw their CPF balances, including both their own contributions and employer contributions, after giving up PR status. They must apply to CPF Board for the withdrawal. Note: CPF funds are invested and earn guaranteed returns, so PRs who plan to leave may want to factor in the loss of these returns when deciding whether to withdraw.