Singapore has one of the lowest personal income tax rate for its tax resident. The maximum personal income tax bracket stands at 22% for annual chargeable income in excess of S$320,000.
Income tax rates depend on an individual’s tax residency status. You will be treated as a tax resident for a particular Year of Assessment (YA) if you are a Singapore Citizen (SC) or Singapore Permanent Resident (SPR) who resides in Singapore except for temporary absences; or a foreigner who has stayed / worked in Singapore (excludes director of a company) for 183 days or more in the year preceding the YA.
If you are not a tax resident, then the employment income is taxed at the flat rate of 15% or the progressive resident tax rates, whichever is the higher tax amount.
Heysara is happy to assist our clients with their foreign employees’ personal tax filings in Singapore.