The Inland Revenue Authority of Singapore (IRAS) has updated its guidance on individual income tax rates, by increasing marginal rates for both resident and non-resident individuals starting from income year 2023 (YA 2024).
For resident tax rates please refer to the following table, which includes the two new top rates of:
- 23% on income of SGD 500,000;
- 24% on income over SGD 1,000,000.
Resident tax rates from YA 2024 onwards
Non-resident tax rates from YA 2024 onwards
Employment income of non-residents is taxed at the flat rate of 15% or the progressive resident tax rates (see table above), whichever is the higher tax amount.
Taxes on director's fee, consultation fees and all other income
The tax rate for non-resident individuals is currently at 22%. It applies to all income including rental income from properties, pension and director's fees, except employment income and certain income taxable at reduced withholding rates (please see Withholding taxes on income of non-resident individuals below).
From YA 2024, the income tax rate for non-resident individuals (except on employment income and certain income taxable at reduced withholding rates) will be raised from 22% to 24%.
Withholding taxes on income of non-resident individuals
Certain income of non-resident individuals is subject to withholding tax when they are due and receivable. For further details regarding which withholding tax rate is applicable, based on the type of income derived and the YA involved, please refer to the table below:
Tax residency definition
Income tax rates depend on a person's tax residency status. Individuals treated as tax residents for a given assessment year (YA) will be:
- Singapore Citizen or Singapore Permanent Resident who resides in Singapore except for temporary absences; or
- Foreigner who has stayed/worked in Singapore:
- For at least 183 days in the previous calendar year; or
- Continuously for 3 consecutive years, even if the period of stay in Singapore may be less than 183 days in the first year and/or third year; or
- Foreigner who has worked in Singapore for a continuous period straddling 2 calendar years and the total period of stay is at least 183 days. This applies to employees who entered Singapore but excludes directors of a company, public entertainers, or professionals.