Taxes and Tax Schemes in Singapore | What You Need to Know in 2025

Singapore, a global financial hub renowned for its strategic location in Southeast Asia, operates one of the world's most competitive and transparent tax systems. Located at the heart of ASEAN, Singapore boasts a sophisticated financial services sector, thriving technology industry, and robust manufacturing base.

Singapore's economy has demonstrated remarkable stability and growth, maintaining its position as a leading global business hub. The nation has successfully balanced competitive tax rates with international compliance standards, emerging as a preferred jurisdiction for multinational corporations and international professionals.

The expat community in Singapore is substantial and diverse, with many drawn to its favorable tax regime, high standard of living, and English-speaking environment. Major sectors like financial services, technology, and biomedical sciences provide numerous opportunities for foreign professionals seeking tax-efficient employment.

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Singapore Income Tax

Singapore employs a progressive tax system for residents, with rates ranging from 0% to 24% as of 2025. The first SGD 20,000 of chargeable income is effectively tax-free due to various tax reliefs and rebates. Tax rates increase gradually with income, with the top rate of 24% applying only to income exceeding SGD 1,000,000.

Non-residents are generally taxed at a flat rate of 15% on employment income or the resident tax rate, whichever yields a higher tax amount. Director's fees and other income sources are taxed at 24%.

The system includes various deductions and reliefs for residents, including those for dependents, life insurance premiums, and voluntary CPF contributions. These deductions can significantly reduce the effective tax rate for many taxpayers.

If you want to have a better understanding of the taxes you should pay on personal income in Singapore, you can use the personal tax calculator in the Taxation section of the Singapore page.

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Singapore Tax on Overseas Income

Singapore operates on a territorial basis of taxation with a remittance-based system. Foreign-sourced income is generally not taxable unless it is remitted or deemed remitted into Singapore. This creates significant advantages for international investors and professionals managing global income streams.

Tax residency applies to individuals who are physically present or employed in Singapore for 183 days or more in a calendar year. Short-term visitors working in Singapore for 60 days or less may be exempt from tax, subject to certain conditions.

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Singapore Tax on Investments

Investment income in Singapore receives highly favorable treatment. The territory imposes no capital gains tax, and there is no tax on bank interest earned by individuals. Dividends paid by Singapore companies under the one-tier corporate tax system are tax-exempt in the hands of shareholders.

Foreign-sourced investment income, including overseas dividends and rental income, is not taxable if received through a designated Singapore bank account, subject to certain conditions. This creates opportunities for efficient investment structuring and wealth management.

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Singapore Corporate Taxation

Corporate tax in Singapore stands at 17%, with significant incentives available for new businesses and specific industries. Start-up companies can benefit from tax exemptions on their first SGD 100,000 of chargeable income for their first three years of assessment.

The corporate tax framework includes generous capital allowances, extensive double tax agreements, and various industry-specific incentives. Group relief provisions allow the transfer of losses and capital allowances between qualifying companies.

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Special Tax Regimes

Singapore offers various tax incentive schemes designed to attract skilled professionals and businesses. The Not Ordinarily Resident (NOR) scheme provides tax benefits for qualifying individuals during their first five years in Singapore, including time apportionment of employment income and tax exemption on employer's contributions to overseas pension funds.

Global Investor Programme participants may enjoy additional benefits when bringing substantial capital into Singapore, while various industry-specific schemes offer preferential tax treatment for qualifying activities.

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Regional Comparison

Tax Planning for Singapore

Effective tax planning in Singapore requires careful consideration of residency status, income sources, and available reliefs. International professionals should maintain clear documentation of their presence in Singapore and overseas income sources. Regular review of tax positions ensures continued optimization as circumstances change.

The ability to structure remittances of foreign income and timing of certain transactions can significantly impact tax liability. Professional advice is recommended for complex situations involving multiple jurisdictions or substantial investment income.

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