Singapur: Entorn econòmic
The first SGD 100,000 of qualifying expenditure incurred to register qualifying IP and the first SGD 100,000 of expenditure incurred to license qualifying IP are subject to an enhanced tax deduction of 200% for tax years 2019 to 2025, whereas for R&D expenses carried out in Singapore, the enhanced tax deduction stands at 250% (100% if carried out overseas). Interest incurred on capital employed in the production of income will be allowed as a tax deduction. From 2024 to 2028, there is an increased tax deduction of 400% for the initial SGD 400,000 spent on eligible IP registration expenses. Businesses with revenue under SGD 500 million for the given year can also benefit from a 400% deduction on the first SGD 400,000 spent to license or acquire IP. Similarly, for the years of assessment 2024 to 2028, an enhanced tax deduction of 400% for the first SGD 400,000 of qualifying R&D expenditure is available.
The tax deduction for medical expenses is limited to 1% of total payroll, unless the employer provides for certain portable medical insurance or benefit schemes (in such cases, the limit goes up to 2% of total payroll).
Donations are deductible only if they are made in cash or another prescribed form and to an approved recipient. The deduction allowed for qualifying donations is generally 250% of the value of the donation. Companies whose employees are assigned to volunteer and provide services to approved charitable institutions from 1 July 2016 to 31 December 2026 are allowed to deduct 250% of the wages and incidental expenses incurred.
Tax losses can be carried forward indefinitely, provided that the company passes the shareholding test (i.e. shareholdings in the company have not changed beyond 50% of the total number of issued shares). Tax losses and tax depreciation can be carried back up to one year, capped at SGD 100,000 and subject to the shareholding test.
Various tax exemptions and incentive schemes exist to encourage investment and trading in the country. For an extensive list, visit the website of the Inland Revenue Authority.
The employer's contribution to the social security fund is 17% of the gross salary (capped at SGD 6,800 per month in 2024). Employers are liable to pay for each foreign employee hired ("Foreign Worker Levy"), with rates varying according to the industry and the ratio of foreign/local workers. A training levy for each employee is levied at a rate of 0.25% on the first SGD 4,500 of gross monthly remuneration (with a minimum of SGD 2).
Moreover, the Foreign Worker Levy is a monthly levy that employers must pay for each foreign employee, including Work Permit or S Pass holders, hired. The levy rate is determined by the employer's industry and the ratio of foreigners to Singaporeans and permanent residents employed in the company.
Buyer’s stamp duty (BSD) is payable at rates of up to 6% on residential property acquisitions and up to 5% on nonresidential property acquisitions. Certain individuals and entities purchasing residential property may also incur an additional buyer’s stamp duty (ABSD) ranging from 5% to 60%, based on buyer category. Both BSD and ABSD are calculated on the higher of the purchase price or market value of the property. Seller’s stamp duty (SSD), up to 15% for industrial property and 12% for residential property, may apply based on the holding period and acquisition date. The BSD on stock and shares acquisition is 0.2% of the market value or purchase price, whichever is higher. Acquiring equity interests in companies primarily owning residential property may attract additional conveyance duties (BSD and ABSD for buyers and SSD for sellers). Transfer of scripless shares listed on the Singapore stock exchange is generally exempt from stamp duty, with relief available in certain cases, subject to conditions.
Leases incur duty at a rate of 0.4% of the total rent for leases up to four years, or 0.4% of four times the average annual rent for leases longer than four years. However, leases with average annual rents not exceeding SGD 1,000 are exempt from stamp duty.
Consult the "Other Taxes" section on the IRAS website for more details.
Singapore | East Asia & Pacific | United States | Germany | |
Number of Payments of Taxes per Year | 5.0 | 23.4 | 10.6 | 9.0 |
Time Taken For Administrative Formalities (Hours) | 64.0 | 195.1 | 175.0 | 218.0 |
Total Share of Taxes (% of Profit) | 21.0 | 33.8 | 36.6 | 48.8 |
Source: Doing Business, Latest available data.
Taxable Income | Progressive rate from 0% to 22% |
Up to SGD 20,000 | 0% |
From SGD 20,001 to 30,000 | 2% |
From SGD 30,001 to 40,000 | 3.5% |
From SGD 40,001 to 80,000 | 7% |
From SGD 80,001 to 120,000 | 11.5% |
From SGD 120,001 to 160,000 | 15% |
From SGD 160,001 to 200,000 | 18% |
From SGD 200,001 to 240,000 | 19% |
From SGD 240,001 to 280,000 | 19.5% |
From SGD 280,001 to 320,000 | 20% |
From SGD 320,001 to 500,000 | 22% |
From SGD 500,001 to 1,000,000 | 23% |
Over SGD 1,000,000 | 24% |
For more information | Access the tax calculator |
Employment income of non-residents | taxed at the flat rate of 15% or the progressive resident tax rates (see table above), whichever is the higher tax amount |
Life insurance premiums are deductible up to a maximum of SGD 5,000 (subject to conditions). A 250% deduction is granted for qualified donations to approved charities and foundations.
Interest expenses may be deductible when incurred wholly and exclusively in the production of taxable income. Mortgage interest is, therefore, deductible only where the property concerned yields income.
No deductions are allowed for medical expenses or for any other personal or household expenditure.
Singapore citizens and permanent residents are allowed deductions against their taxable income for contributions made to the Central Provident Fund or an approved pension/provident fund but subject to certain limits. For a self-employed individual, the deduction for contributions made for each year of assessment is restricted to the lower of SGD 37,740 and the CPF contribution rate of 37% is applied to the individual's assessable business income. A deduction for SRS contributions of up to SGD 15,300 (for Singapore citizens and permanent residents) and up to SGD 35,700 (for foreigners) can be claimed against the income earned in the year in which the contributions are made.
Several personal reliefs are also available (e.g. SGD 2,000 for a spouse, the lesser of actual earned income or SGD 1,000 if the age is under 55 for earned income, SGD 4,000 for each child under the age of 16 years, up to SGD 5,500 for educational expenses, SGD 5,500 for aged parent or grandparent maintained by a taxpayer in Singapore, etc.). A rebate against either or both parents’ tax liability of SGD 5,000, SGD 10,000, and SGD 20,000 is available for the first, second, and each subsequent Singaporean child respectively.
Individuals are subject to a cap of SGD 80,000 per year of assessment on the total amount of personal income tax reliefs they can claim.
Individuals engaged in trade, business, profession, or vocation can deduct expenses incurred solely for income production, except those disallowed by the Income Tax Act. This includes capital allowances on most fixed assets, excluding land and non-industrial buildings. Qualifying self-employed individuals can opt for a fixed expense deduction ratio, a deemed amount based on a percentage of gross income, instead of claiming actual expenses.
For a full list of deductions and reliefs, consult the dedicated page on the Inland Revenue Authority website.
The Not Ordinarily Resident (NOR) Taxpayer Scheme allows an individual to be taxed only for the days spent in Singapore as well as to receive tax exemptions on contributions made by the employer to an overseas pension fund. To qualify for NOR status, an individual must have 3 consecutive non-resident YAs immediately prior to the first year of residency in Singapore. The status is granted for 5 consecutive years of assessment commencing on the first year as a Singapore tax resident. The NOR scheme ceased after the year of assessment 2020. As such, the last NOR status granted will be valid from YA 2020 to YA 2024.
Employers are subject to a monthly Foreign Worker Levy for each foreign employee (rates vary according to the industry and the number of foreign employees).
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Actualitzacions: November 2024