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

Quick Answer: Singapore uses a territorial tax system — only income earned in Singapore is taxable. Resident income tax rates run from 0% to 24% (progressive). There is no capital gains tax, no dividend tax, and no inheritance tax. Non-residents are taxed at 15% on employment income (or the resident rate if higher). The CPF (Central Provident Fund) is Singapore's mandatory savings system for residents and permanent residents.
By Daniel, founder of CountryTaxCalc.com

Last Updated: April 2026

Key Facts

Resident Tax Rates
0–24% progressive (on chargeable income)
Non-Resident Rate
15% on employment income (or resident rate if higher)
Capital Gains Tax
None
Dividend Tax
None (one-tier tax system)
Territorial System
Only Singapore-sourced income taxable
CPF Contribution (Resident/PR)
Employee 20%, Employer 17% (below age 55)
Tax Year
1 January – 31 December (filed by 18 April online)
Official Authority
IRAS — Inland Revenue Authority of Singapore

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:

Chargeable Income (SGD)RateGross Tax Payable
First $20,0000%$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 $320,00022%

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:

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:

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

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.

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Frequently Asked Questions

Q: Is there capital gains tax in Singapore?

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.

Q: What is the Employment Pass and how does it affect my tax residency?

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.

Q: Do US citizens in Singapore still owe US taxes?

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.

Q: How are dividends taxed in Singapore?

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.

Q: Can foreigners withdraw CPF when leaving Singapore permanently?

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.

Disclaimer: This guide provides general information about Singapore taxation for educational purposes only. Tax rules change frequently and individual circumstances vary. Always verify current rates and thresholds with IRAS (iras.gov.sg) or a qualified Singapore tax adviser. This is not tax advice.

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