IRAS | The Singapore tax system (2024)

FAQs

How are taxes in Singapore compared to the US? ›

Personal Income Tax

With a maximum rate of 22% compared to the US's 39.6%, individuals working in Singapore can benefit from a lower tax burden. This difference can be an important factor for businesses considering relocating key personnel or attracting top talent to their operations.

TLDR: Singapore does not pay for healthcare, welfare and pensions unless the person and family has no means to do so. Thus lower spending leads to lower tax demands. Instead PR and Citizens must save - and this relates to 37% of a persons income.

Non-resident individuals are not entitled to any personal reliefs and deductions, and are subject to tax at a flat rate of 24%. As a concession, employment income of non-residents is taxed at the higher of a flat rate of 15% or the graduated resident rates with personal reliefs.

Singapore is considered a tax haven for US citizens due to its attractive tax policies and business-friendly environment. The city-state boasts a relatively low personal income tax rate, with a progressive scale of 22%.

Taxation of Global Income: U.S. citizens, including non-residents, are taxed on their worldwide income. Conversely, Singapore only taxes its residents on worldwide income, but non-residents are taxed only on income sourced within Singapore.

Sometimes known as a tax haven, there are several favorable policies for people living and doing business in Singapore. The country offers several tax breaks, boasts a relatively low corporate tax rate and top personal tax bracket, and it does not levy taxes on capital gains.

The long-troubled West African country, Ivory Coast, has the highest income tax rate in the world. People living there are giving away a whopping 60% of their income to the government.

Singapore's tax rates are generally considered low compared to other developed countries. For example, the highest personal income tax rate in Singapore is 22%, while in Australia, it's 45%. Corporate income tax rates in Singapore are also lower than in many other countries.

A salary ranging between 70,000 SGD to 100,000 SGD is generally considered to be good for sustaining a comfortable life in Singapore. However, it is important to note that a “good” salary for an individual depends on his financial circ*mstances, requirements, job type, and a few other factors.

Non-taxable income in Singapore includes: Overseas earnings wired to Singapore after the 1st of January 2004. Capital gains earnings such as yields from the sale of fixed assets. Foreign-sourced service earnings, branch profits, and dividends.

What is the salary in Singapore compared to the US? ›

According to a salary report by Salary Explorer, the median salary in Singapore is 7,650 SGD per month. That equates to around 5,726 USD.

Among the countries with the lowest tax rates in the world are Malta, Cyprus, Andorra, Montenegro and Singapore. Aside from zero income tax, in Antigua and Barbuda, individuals are also free from paying taxes on wealth, capital gains, and inheritance.

British Virgin Islands

Considered by many to be the world's leading tax haven, this British Colony's economy holds more than 5,000 times its worth in foreign investments.

In Singapore, the monthly cost of living is estimated to be around SGD 1,542 (approximately INR 94,920.21) for a single person and SGD 5,563.5 (approximately INR 3,42,469.91) for a family of four.

Virtually everything is more expensive in Singapore than in the US. So, you have to be judicious in what you bring back. Clothing from popular American brands such as Timberland, Levi's, CK, etc.

Cost of living in United States is 21% cheaper than in Singapore.

Singapore's tax rates are generally considered low compared to other developed countries. For example, the highest personal income tax rate in Singapore is 22%, while in Australia, it's 45%. Corporate income tax rates in Singapore are also lower than in many other countries.