Singapore tax rates and rules for foreigners (2026)

Tax System Overview

Income Tax in Singapore

Singapore operates a Territorial taxation income tax system. The top marginal rate is 24%.

What Does This Mean in Practice?

On a gross annual salary of €90,000, you would pay an effective tax rate of approximately 0.5%, resulting in a net monthly income of approximately €6,633. This accounts for income tax and mandatory social contributions.

For context, the average monthly salary in Singapore is approximately €5,625.

VAT (Value Added Tax)

The standard VAT rate in Singapore is 8.0%. VAT is included in consumer prices and applies to most goods and services. Reduced rates typically apply to:

• Basic food items and groceries
• Medical supplies and pharmaceuticals
• Books and educational materials
• Public transport (in some cases)

Special Tax Regimes for Expats

Yes — investment. Not Ordinarily Resident (NOR): Only Singapore-sourced income taxed for 5 years. Foreign income exempt | Global Investor Programme: Permanent residence via investment. SGD 10M minimum

If eligible, these regimes can provide substantial savings during your initial years in Singapore. Always verify current requirements with a qualified tax professional, as rules change frequently.

Tax Filing Requirements

As a tax resident of Singapore, you are generally required to:

1. Register with tax authorities upon establishing residence
2. Obtain a tax identification number
3. File an annual tax return (deadlines vary)
4. Declare worldwide income if you are a tax resident
5. Report foreign bank accounts if applicable

Double Taxation

Singapore has double taxation agreements (DTAs) with numerous countries. These treaties determine which country has the right to tax specific types of income and help prevent you from being taxed twice on the same income. Before moving, check whether a DTA exists between Singapore and your home country.

Tax Tips for Expats

• Hire a local tax adviser familiar with expat situations during your first year
• Keep records of all income, deductions, and tax payments from day one
• Understand residency rules: most countries consider you a tax resident after 183 days
• Check for exit tax: some countries impose tax on unrealised gains when you leave
• Social security contributions are often separate from income tax and can add 10-20% to your total burden

Additional Practical Information

The following information is compiled from expat community sources and recent reports to complement the official data above.

Key Institutions and Services

Based on current expat reports, the following organisations and services are relevant for newcomers to Singapore:

• Inland Revenue Authority
• Central Provident Fund

Additional Data Points

Recent reports and expat sources provide these additional figures for Singapore:

• If you work for 61 to 182 days, you'll be considered a non-resident but will still have to avail yourself of taxes, which will amount to 15% or progressive resident rates, whichever results in the highest amount. For professionals holding directorship positions, income will be taxed at 22%. Finally, those who are employed for 60 days or less are exempt from tax obligations, except for directors, public entertainers, and professionals.
• You should also note that if you don't hear anything from IRAS, that doesn't necessarily mean that you don't need to file your income tax. If you have an annual net business income that exceeds S$6,000 or an annual income (inclusive of rental income) that exceeds S$22,000, then you'll need to file. Just remember that it's always better to be safe than to be sorry!
• Another interesting thing to know is as of 2022, the Singaporean government has decided that around 120,000 taxpayers on the No-Filing Service will get a Direct Notice of Assessment (D-NOA). This means that instead of receiving communications that they need to file, these people will just get a direct bill in May. You should still check the bill properly and declare any discrepancies, if any, to IRAS.
• The scheme is particularly interesting for individuals who have been classified as non-residents for the three years preceding their new classification as tax residents. Upon being reclassified (if, for example, the individual decides to relocate permanently to Singapore), qualified individuals are given the NOR status for a period of 5 years. IRAS provides a NOR status calculator for those wishing to check their eligibility.
• To qualify for the NOR scheme, you must be a tax resident for that year of assessment (YA). And as we've previously said, you must be a non-resident for three consecutive YAs before becoming a tax resident. In addition, you must've spent at least 90 days outside of the country for business reasons, and your total Singaporean employment income must be at least S$160,000.
• If you want to be taxed as a non-resident, you need to send in your application within four years from the YA after the year you were assessed as a resident. If you submit it after 4 years, then you won't be allowed for the NOR scheme.

Additional data sourced from expat community reports. All information should be verified with official sources.