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, same as for R&D expenses carried out in Singapore (100% if carried out overseas). Interest incurred on capital employed in the production of income will be allowed as a tax deduction.
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.
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. For FY2020, current year losses and tax depreciation of up to SGD 100,000 may be carried back for up to three preceding years of assessment.
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.
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% |
Over 320,000 SGD | 22% |
For more information | Access the tax calculator |
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 expense 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% applied to the individual's assessable business income.
Several personal reliefs are also available (e.g. spouse, earned income, child reliefs, educational expenses, etc.).
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 YAs commencing on the first year as a Singapore tax resident. The NOR scheme ceased after 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).
Find out more about Taxes and Accounting in Singapore on GlobalTrade.net, the Directory for International Trade Service Providers.
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Actualitzacions: May 2022