Tax in Singapore for Expats: Tax Residency Rules, Rates, and the Filing Process Explained

While Singapore’s territorial tax system is known for its simplicity and competitiveness, there are important rules regarding tax residency, income tax rates, reliefs, and filing obligations that all expats must be aware of.

This guide offers a comprehensive overview of tax in Singapore for expats, helping you navigate your liabilities, optimise available deductions, and avoid costly compliance errors.

Understanding Singapore’s Tax System

Singapore operates a competitive and transparent tax regime, administered by the Inland Revenue Authority of Singapore (IRAS). The tax system is territorial in nature, meaning that only income earned within Singapore is subject to taxation.

Foreign-sourced income is generally not taxed, unless it is received in Singapore through a partnership operating within the country.

Additionally, there is no capital gains tax or inheritance tax, making Singapore a highly tax-efficient jurisdiction for expatriates seeking to grow or preserve wealth.

Is Singapore Tax-Free for Expats?

While Singapore does not tax most foreign income, expats are liable for income tax on any income earned within the country.

Taxable income is assessed for the calendar year preceding the Year of Assessment. For example, the Year of Assessment 2025 applies to income earned from 1 January to 31 December 2024.

An expat’s tax liability in any given Year of Assessment depends on two main factors:

1. Whether the individual qualifies as a tax resident or non-resident for that period.
2. The amount of income earned in Singapore during the relevant calendar year.

Determining the Tax Residency Status for Expats

Your tax residency status determines the rate and method of taxation applied to your income in Singapore.

You will be treated as a tax resident if you fall into any of the following categories:

• You are a Singapore citizen or permanent resident who ordinarily resides in Singapore, with the exception of temporary absences.
• You are a foreigner who:
  • Has worked or stayed in Singapore for at least 183 days in a calendar year (e.g., from 1 January to 4 July 2024, totalling 184 days – you would be a tax resident for YA 2025).
  • Has worked or stayed continuously for three consecutive years (e.g., from 26 October 2021 to 6 May 2023 – qualifying for YA 2022, 2023, and 2024).
  • Has worked in Singapore for a continuous period spanning two calendar years and stayed at least 183 days in total (e.g. from 26 October 2022 to 17 June 2023 – qualifying for YA 2023 and 2024).

It’s important to note that the number of days of employment that will be used to determine your tax residency status in Singapore includes weekends and public holidays.

Additionally, any temporary absences from the country related to your work, such as overseas vacations and business trips, will also be counted toward the 183-day threshold.

Income Tax Rates for Expats Who Are Tax Residents in Singapore

Singapore applies a progressive tax system to resident taxpayers, with rates increasing based on income level. The maximum personal income tax rate is 24% for income above S$1 million (as of YA 2025).

Only the portion of income within each bracket is taxed at that bracket’s rate.

Example:

If your taxable income is S$40,000:

• The first S$20,000 is tax-free
• The next S$10,000 is taxed at 2% = S$200
• The next S$10,000 is taxed at 3.5% = S$350
• Total tax payable: S$550

The following table provides a breakdown of Singapore’s progressive income tax rates based on taxable income:

Income Tax Rates for Expats Who Are Non-Residents in Singapore

Non-resident expats are taxed only on income earned in Singapore. The applicable tax rates vary depending on the type of income. Non-employment income, such as income from director’s fees, property renting, or pensions, is subject to various rates depending on its nature.

The table below outlines some of the withholding tax rates for non-resident expats in Singapore based on their type of income:

Short-Term Employment Exemption

Non-residents working in Singapore for 60 days or fewer in a calendar year are exempt from income tax on employment income only. However, this short-term employment exemption does not apply if the income is from:

• Director’s fees.
• Public entertainment services.
• Professional services (e.g. consultancy, training).

Deductions and Reliefs

Non-residents may deduct certain expenses (e.g. business-related costs) and may claim donations to reduce taxable income, but they do not qualify for personal reliefs such as earned income relief or spouse/child relief.

Tax Filing Requirements

In most cases, non-residents do not need to file a tax return for income subject to withholding tax, as the Singapore-based payer handles the remittance directly to IRAS.

Other Taxes Singapore Expats Should Be Aware Of

In addition to personal income tax, expatriates living in Singapore should be cognisant of the following taxes that may impact their financial planning and obligations:

Corporate Income Tax

Singapore maintains a flat corporate income tax rate of 17% on income accrued in or derived from the country. Foreign-sourced income is generally not subject to tax unless it is received in Singapore and falls under specific conditions outlined by the Inland Revenue Authority of Singapore (IRAS).

Goods and Services Tax (GST)

As of 1 January 2024, the GST rate in Singapore increased to 9%, applicable to most goods and services supplied domestically, as well as imported goods and certain digital services . GST is a consumption tax levied on the end consumer, and businesses registered for GST are responsible for collecting and remitting this tax to IRAS.

Property Tax

Property tax in Singapore is levied annually based on the Annual Value (AV) of the property. For owner-occupied residential properties, the following progressive tax rates apply from 1 January 2025:

• First S$12,000: 0%.
• Next S$28,000: 4%.
• Next S$10,000: 6%.
• Next S$25,000: 10%.
• Next S$10,000: 14%.
• Next S$15,000: 20%.
• Next S$40,000: 26%.
• Above S$140,000: 32%.

For non-owner-occupied residential properties, such as rental or investment properties, the tax rates are higher, ranging from 12% to 36%, depending on the AV.

A one-off property tax rebate has been introduced for 2025 to alleviate the tax burden on homeowners:

• 20% rebate for owner-occupied HDB flats.
• 15% rebate, capped at S$1,000, for owner-occupied private residential properties.

Buyer’s Stamp Duty (BSD)

When purchasing property in Singapore, buyers are required to pay BSD, calculated on the higher of the purchase price or market value of the property. As of 15 February 2023, the BSD rates for residential properties are as follows:

• First S$180,000: 1%.
• Next S$180,000: 2%.
• Next S$640,000: 3%.
• Next S$500,000: 4%.
• Next S$1,500,000: 5%.
• Amount exceeding S$3,000,000: 6%.

Additionally, expats should be aware of the Additional Buyer’s Stamp Duty (ABSD), which imposes an extra tax on certain property purchases. As of 27 April 2023, the ABSD rates are:

• Permanent Residents (PRs): 5% on first property, 30% on second property, and 35% on third and subsequent properties.
• Foreigners: 60% on any property purchase.

These rates are subject to change, and it’s advisable to consult the latest information from IRAS or seek professional advice when considering property transactions.

For tailored guidance on your tax position, filing obligations, and relief entitlements, speak with a specialist at Titan Wealth International. Our advisers offer cross-border expertise to help you remain tax compliant while living in Singapore.

Tax Reliefs, Deductions, and Exemptions for Expats in Singapore

As a tax resident in Singapore, you may be eligible for various reliefs and deductions to reduce your taxable income. Below is an overview of key provisions applicable for YA 2025.

Personal income tax rebate: All tax resident individuals are entitled to a one-off personal income tax rebate of 60% of tax payable, capped at S$200. This rebate is automatically applied by the Inland Revenue Authority of Singapore (IRAS) and does not require a separate application.

Double Taxation Agreements (DTAs): Singapore has DTAs with numerous countries to prevent double taxation. If your home country has a double taxation agreement with Singapore, you may be able to claim relief to avoid being taxed twice on the same income. Consult the specific DTA provisions applicable to your situation.

Donations to approved institutions: Donations made to approved Institutions of a Public Character (IPCs) in Singapore are eligible for a tax deduction of 250% of the donated amount. For example, a donation of S$1,000 would reduce your taxable income by S$2,500.

Rental expenses: If you earn rental income from property in Singapore, you can claim deductions for expenses incurred in earning that income, such as property tax, mortgage interest, and maintenance costs.

Central Provident Fund (CPF) Relief: Contributions to the CPF are generally not applicable to expats unless you are a Singapore Permanent Resident. However, if you make voluntary cash top-ups to your own or your family members’ CPF accounts, you may be eligible for tax relief, subject to conditions and caps.

Life insurance relief: You may claim relief for life insurance premiums paid on your own policy if your total compulsory CPF contributions for the year were less than S$5,000. The relief is limited to the lower of:

• The difference between S$5,000 and your CPF contributions.
• 7% of the insured value of your own life or the amount of premiums paid.

Course fees relief: If you have incurred course fees for approved courses that are relevant to your current employment, trade, business, profession, or vocation, you may claim relief of up to S$5,500 per year.

Understanding and optimising these reliefs can significantly reduce your tax liability in Singapore.

For personalised advice tailored to your specific circumstances, consider consulting with a financial advisory firm – like Titan Wealth International – experienced in expat taxation in Singapore.

How To File Taxes as an Expat in Singapore

If you are an expat living in Singapore and earned income during the previous calendar year, you are required to file a personal income tax return if you meet any of the following criteria:

• Your total income exceeds S$22,000.
• You earned a self-employment income with a net profit higher than S$6,000.
• You are a non-resident who earned any income in Singapore.

The deadline for submitting your tax return for the previous year is 15 April of the current year for paper filings or 18 April for electronic filings. If you opt to file your return electronically, you must log in to myTax Portal using your Singpass or Singpass Foreign user Account (SFA) and follow the provided instructions for declaring your income, calculating deductions, and claiming reliefs.

Once you have submitted your income tax return, the IRAS will assess it and issue an income tax bill (Notice of Assessment) from the end of March to the end of September of the same year. If the assessment is accurate, you can pay your personal income tax using one of the following methods:

• Via General Interbank Recurring Order (GIRO): GIRO is an automated payment system that allows you to transfer funds directly from your bank account to government agencies and other service providers in Singapore. You can make a one-time income tax payment or spread it across 12 monthly, interest-free instalments.
• Via internet, phone, or mobile banking services: Digital payment services like PayLah! and PayNow let you make fast, cashless transactions.
• In-person: You can visit a post office and pay your income tax using the Network for Electronic Transfers (NETS)