Singapore Income Tax Simply Explained with Examples!

Hi ladies and gentlemen,
I hope you all can work out your Singapore income taxes after watching this video :) Do subscribe for more personal financial content! Keep learning onwards and upwards! Cheers!
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[@aradhyadhruv9084]

Thank you so much for sharing this with examples

[@lhenzbujo1170]

Im currently studying ACCA and Im at F6 (Taxation) paper. I will watch more of your videos. They are super helpful. Thank you :)

[@AxeandYung]

Hi there, thank you for your kind words, that is motivating for us to keep creating useful content 😀 Do subscribe to support yea.

[@littleangelsfromheavens7345]

Very well explained. Thanks

[@nikkixyz07]

thank you, so helpful. Is the 183 days count in calendar days? I’m starting to work on July 1, 2022 and that will be 184days until the year ends, will I be considered resident?

[@AxeandYung]

yes it is count as calendar days 😀

[@geshumaa7416]

Thanks, well explained 👍

[@AxeandYung]

Glad you liked it. Feel free to share to others who you think will be interested and do subscribe as we will be active once more!

[@waiphyotun7633]

Thanks!

[@Colonelmeme007]

Simply awesome

[@AxeandYung]

Thank you for your kind words :) Consider subscribing to our channel to support our effort 😀

[@ryanang56]

hi bro, i wanna ask example my tax salary is 2.5k a month 30K a year. as an employee i will need to 'pay'6000 a year for CPF left me with 24k(i am 20) so fall under 20% CPF +17% as for what i know CPF contribution is not taxable from IRAS, but do i get to deduct it? like 24k-6k or i will just tax on 24k

[@AxeandYung]

Hi there, usually your employee should have help to file the income tax, meaning you just need to login and submit. The gross salary is in the Income part, while the CPF contribution will be deductible at the below part. So dont worry, employee cpf portion will be taken out when calculating tax.

[@jitjit3001]

Hi Axe, I am from Malaysia. If I start working in Singapore on August and this means I don't have enough 183 days till the last day of 2022. So I have to pay the non resident tax flat rate of 15%?

[@AxeandYung]

Hi Jit Wei, good question. As long as you are still working in Sg at the point of tax clearance (probably around Apr or May 2023), you are considered a tax resident. So not to worry much unless you decide to leave Singapore within 183 days. Hope this is clear. And all the best to your new life here! 😀

[@abbyliew7957]

In this case, you can actually check out the Administrative concession by IRAS; which are the 3-year/2-year administrative concession. The first one states that if you exercise employment or stay in Sg for at least 3 consecutive years, you will be deemed as a tax resident although the number of days is less than 183 days for the first and the last year. Your tax rate would be at residential rate from 0 - 22%. The 2-year administrative concession states that if you work at Sg continuously for 2 years (2022 and 2023) with the period being at least 183 days for both years in total, you will be considered as a tax resident even though the number of days in the first year starting from August does not sum up to 183 days. You will also be taxed at residential rate like mentioned above. So you don't have to worry about paying tax at a flat rate of 15%.

[@dharsan4571]

How taxes work investments? Like income from land property, stocks capital gains, dividends (Singapore and US market), crypto and maybe savings accounts interest. Thks for the video!

[@AxeandYung]

Hi there, Thanks for the question. There is tax on rental income given there are stamped lease agreement between you and the tenants. Generally dividends from stocks, REITS, crypto are non taxable with few exceptions if it is paid by cooperative or you derive through partnership. For more details or updated changes in regulation, kindly refer to www.iras.gov.sg/taxes/individual-income-tax/employees/income-from-property-investment-and-other-sources/other-sources-of-income/dividend Hope this helps.

[@diegosalazar4317]

@@AxeandYung una consulta que opinas de la empresa knightbridge que hace devolución de impuestos a Chile no se si la has escuchado? Pues dicen que es una supuesta estafa piramidal o ponsi. Si pudieras hacer un vídeo o darme alguna orientación de ante mano gracias.

[@lsy97]

Is my compulsory CPF contribution (the 20% of my salary) taxable? Eg. If my salary is 10k a month, will the taxable income for the month be 10k or 8k?

[@AxeandYung]

compulsory CPF contributions are not taxable.

[@rajeshmaurya1849]

How to put multiple company salary? I have changed 2 company in year 2021 only.

[@AxeandYung]

Hi Rajesh, you may add in additional income when filing.

[@mingxuanchuang1459]

If I switch to another job in sg within that period and my ex company helped me to pay my non residency tax, is it possible for me to claim back after I worked 183 days in my current company?

[@AxeandYung]

Yes

[@cicikalibi]

The tax payable you mentioned is yearly, right? So, we need to divide 12 and that's the monthly tax?

[@AxeandYung]

Yes it is yearly. You can pay off the tax one-off or ops to pay monthly by giro 😀

[@cicikalibi]

@@AxeandYung ah thank you, a lil bit shock because it's quite low but thank god haha 😆

[@M43782]

@@AxeandYung So can I don't pay personal income tax whole year and after that year make one big transfer to IRAS? If so it could be beneficial I can invest that money.

[@izabelrodrigues3309]

Hi I’m from Malaysia, I work June-Dec. I work 193 days but do I need to pay a lot for income tax?

[@AxeandYung]

Hi there, when you leave your job, your HR should let you know about the tax procedure. Question, are you leaving for good or you have another job to work in Singapore? Personal income tax filing due date is due by mid April.

[@abdulmajithg]

Nice bro..

[@AxeandYung]

Thank you bro 👍

[@alfianwijayakusuma152]

Does foreigner who work more than 183 days in a year will also eligible to CPF from employer?

[@AxeandYung]

Hi there, CPF is for local citizen and permanent residents, it consists of contributions from both employee and employer. The main purposes are for buying house, kids education, medical and retirement. Foreigners are not entitled to it. If work for more than 183 days in a year, foreigners are enjoying the lower income tax rates same like the citizen and permanent residents.

[@archiehickox6518]

I'm curious. If I incorporate a company in Singapore, but operate the company from outside Singapore, but I pay myself a salary from that company. Am I taxed as a resident or non resident? The UK, for example, even if I don't live in the UK but pay myself a salary from that UK company, I'm classed as a UK tax resident.

[@AxeandYung]

Hi Glen, very creative scenario. Btw are you Singapore citizen and PR now? Otherwise, when you incorporate a company in SG, you will issue yourself with an employment pass right? Singapore residents can be taxed by dual countries, also depends on the law in the country you live in. Unless you are foreigner non-resident of Singapore ?

[@archiehickox6518]

@@AxeandYung UK citizen. Foreigner and non resident of Singapore. I appreciate the reply mate!

[@abbyliew7957]

The residence of your company is determined on the location in which the management and control is exercised/ where the board of meeting is held. Since you incorporated a company in Singapore but operate the company from outside Singapore, your company is a non resident in Sg. But you have to look at things like whether you're trading IN or trading WITH Sg. These 2 make a difference because if you're trading WITH Sg, whereby income is sourced outside Sg, the company is not taxable. If you're trading in Sg where your company's income is sourced from Sg, that income would be taxable. Permanent Establishment (PE) plays a big factor in decide whether you are trading IN or trading WITH Sg. To have PE, you need to have a fixed place where the business is wholly or partially carried on including a place of management, a branch, an office etc. So following the scenario you said, you are trading IN Singapore and therefore the company is taxable in Singapore. Also, since you as an individual is a non-resident in Singapore, you will be taxed at a flat rate of 22%. (having tax exam tmr lol just applying the things ik for revision XD)

[@NazriB]

Lies again? Turbo Tax

[@kuhankuhan3141]

Bro how to take income tax statements for foreign workers

[@AxeandYung]

by asking your employer

[@kong_kwan]

Why is income tax in Singapore so low compared to many countries??

[@AxeandYung]

Cz Singapore wants to attract more foreign investments and foreign talents. Look at USA for example, America is rich cz of inflows of wealth pouring from other countries since it’s inception. Nikola Tesla and Albert Einstein are from Europe. Elon Musk from South Africa. Unfortunately not all locals are happy about this. Which begs the question, would Singapore ever become as it is if it were not for the inflows of foreign wealth and knowledge? even Grab Ceo is from Malaysia. Tax low more wealth comes in, Singapore as a whole becomes wealthier

[@khanna1986]

Sir, Do I need to Pay Income tax to Singapore Government if i live in Dubai And trade in Singapore Stock market daily?

[@AxeandYung]

No, you do not need to unless you are a Singapore tax resident. You may read more in the official link below www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/what-is-taxable-what-is-not/gains-from-sale-of-property-shares-and-financial-instruments

[@khanna1986]

@@AxeandYung Thanks dear

[@SelvamSelvam-mg3kk]

Hi bro,this month I received tax.but last year 2021 around 7 month I not in singapore.5 months only I worked but I received tax letter...how is that possible.please reply bro

[@AxeandYung]

Yes, you will be taxed a foreigner tax rate working less than 6 months in Singapore. Which is much higher than the resident tax rates if you work more than 6months

[@AxeandYung]

The only way around it is to work 6 months+ in Singapore in a year to get your tax bill refunded.

[@Tinalixv3]

Sorry but i dont understand what the "next" below "first" means can you Summarize it?

[@AxeandYung]

first is “up to” or “all amounts up to” next is “after the amount of”

[@harithamungara2881]

Hi I need you are help plz I was worked three months in singapore and my salary 7000SGD.i need to pay 3000SGD for three months 😰??

[@AxeandYung]

Yes unfortunately, if you work 6 months and below in Singapore, you will be taxed foreigner rates which are very high. However, if you are to come back and work for more than 6 months, you will be tax resident rates and during filing, you will be refunded the extra amount paid last time (regardless of companies worked)

[@samuelese22]

Forgive me, I didn't watch all of your video. But in Australia we have PAYGW - Pay As You Go Withholding. Which means throughout the financial year, the estimated amount of tax you owe on earnings is taken out of your pay. I don't think Singapore does this? Why?

[@AxeandYung]

Yes, Singapore do not have the PAYGW. As to why, I guess it’s something the legislators have not thought necessary to implement yet or have not studied it yet.

[@samuelese22]

@@AxeandYung so how does someone in Singapore pay tax? xD Is this a bill at the end of the year?

[@danjo8760]

TQ Bro

[@AxeandYung]

Your welcome 😊 Do like and subscribe to support our channel 👍 Every click helps

[@callmemr.b7687]

Can I asked if monthly wages is 4000 sgd/ month. So yearly is 48.000 sgd so my tax is will be 1.100 sgd? Is it I need pay 1.100 SGDjust once per year? or I need pay 1.100 SGD a whole year that mean. 1.100 SGD x 12 months = 13.200 SGD ? And I'm a non residents work here for 1 year.

[@AxeandYung]

you may opt to pay taxes once a year or by installments of every month by giro(12 times a year)

[@callmemr.b7687]

@@AxeandYung So the tax nominal I pay if per year is just 1.100 SGD or 1.100 SGDx12= 13.200 SGD per year? If my yearly wages is 48.000 SGD Thank you

[@khalifeddie3718]

@@callmemr.b7687 1.100 DIVIDE by 12 not TIMES 12

[@FitnessMyanmar]

need KZbinr in SG pay income tax?

[@AxeandYung]

yes bro, must declare in other income. However if combined income below 20,000 no need.

[@tytion7209]

👍👍

[@AxeandYung]

Thank you for the support 😀

[@waleedmohammed6990]

I’m accountant Could you help me to get job

[@AxeandYung]

Try jobstreet or efinancialcareers. If you know which companies you are looking at, you can directly apply when there are openings. Good luck!

[@wqivanchung9417]

Up

[@AxeandYung]

Thank you for your support Ivan. Hope this video helps to explain the basic of income tax here. Do subscribe to our channel for more content like this :) Thank you

[@felipe9739]

nice coco baxter

[@AxeandYung]

Thank you Felipe! 😄