Home / 🇸🇬 Singapore
Singapore is a sovereign city-state and island country located in maritime Southeast Asia. It is the most developed sovereign nation in Asia, being ranked 9th on the UN Human Development Index, and has the 7th highest GDP per capita in the world.
Singapore considered the most incorruptible nation in Asia and the fifth most incorruptible worldwide. Singapore is placed highly in key social indicators: education, healthcare, quality of life, personal safety, and housing,. In 2016, Singapore is rated the world's most expensive city for the third consecutive year by the Economist Intelligence Unit.
The Singaporean economy is known as one of the freest, most innovative, most competitive, most dynamic and most business-friendly. The Index of Economic Freedom ranks Singapore as the second freest economy in the world and the Ease of doing business index has also ranked Singapore as the easiest place to do business for the past decade.
Highlights
Residency Programs (1)
Cost of Life
Taxation overview
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Tax system
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Territorial taxation
Countries with a territorial taxation system only levy income tax from local income. Foreign income usually won't be taxed by that country.
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Tax summary
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Personal income tax (PIT)
Progressive tax up to 22% above SGD 320,000 ($238,539)
Income is taxable when it accrues in or is derived from Singapore, whether or not the individual is resident in Singapore. Income derived from sources outside Singapore is only taxable if it is received in Singapore by a resident individual through a partnership in Singapore.
Corporate income tax (CIT)
17%
A partial tax exemption and a three-year start-up tax exemption for qualifying start-up companies are available.
Value-added tax (VAT) (Goods and Services Tax, GST)
7%
Social security contributions
- Central Provident Fund (CPF): The CPF is Singapore's national pension scheme. Contributions are payable by Singapore citizens and permanent residents only. Employers and employees contribute 17% and 20%, respectively, of ordinary monthly wages, up to an income ceiling of SGD 6,000 ($4,473). Foreign nationals and their employers are precluded from making CPF contributions. Foreign employees who become Singapore permanent residents, and their employers, may contribute at reduced rates for the first two years.
- Supplementary Retirement Scheme (SRS): The SRS is a voluntary scheme to encourage employees and the self-employed to save for retirement over and above their CPF savings.
Withholding tax (WHT)
- Resident WHT rates: Not applicable on Dividends, Interests and Royalties
- Non-resident WHT rates: 0% on Dividends, 15% on Interests, 10% on Royalties
Capital gains tax (CGT)
- As Corporation: Not taxable
- As Individual: Not taxable
Net wealth/worth tax
Not taxable
Inheritance and Gift tax
Not taxable
Controlled foreign companies (CFCs)
- Controlled by Corporation: No
- Controlled by Individual: No
Disclaimer: This tax summary is for information only and shall not be construed as tax advice. Every situation is different. Should you consider moving to Singapore, we highly recommend you liaise with a local tax advisor to confirm your future tax regime.
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Year of Assessment
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YA 2021