PERSONAL TAX
- Singapore follows a progressive tax rate ranging from 0 percent to 22 percent for income above S$320,000.
- There are no capital gains or inheritance taxes in Singapore.
- Only income earned within Singapore is subject to taxation for individuals. Income earned overseas is generally not taxed, with a few exceptions.
- Tax rules vary depending on the individual’s tax residency.
- Income tax is assessed on a preceding year basis.
- Employers are required to prepare IR8A by 1st March each year.
- The deadline for employees to file Form B or B1 is 15 April. If you choose to e-File, you have until 18 April to do so.
- Partnerships are required to file Form P by 15 April. If you choose to e-File, you have until 18 April to do so.
Yes, in Singapore, it is possible to pay your taxes in instalments. The Inland Revenue Authority of Singapore (IRAS) offers a payment plan known as the GIRO (General Interbank Recurring Order) instalment plan, which allows taxpayers to spread their tax payments over a period of up to 12 months.
To be eligible for the GIRO instalment plan, you must have a local bank account and a valid tax reference number. You can apply for the plan online via the IRAS website or by filling out a paper application form.
Once your application is approved, the instalments will be automatically deducted from your bank account on the agreed-upon dates. You can choose to pay in monthly, quarterly, or semi-annual instalments.
It is important to note that there may be fees or interest charges associated with the GIRO instalment plan. Additionally, if you do not make your payments on time, you may face penalties or interest charges.
If you are unsure about the specific options available to you for paying your taxes in Singapore, it is best to contact the IRAS or a qualified tax professional for guidance.
As an employer, you must prepare Form IR8A and Appendix 8A, Appendix 8B, or Form IR8S (where applicable) by 1st March each year for all your employees who are employed in Singapore.
| Form IR8A | To be utilized for reporting the remuneration of ALL employees. It is prepared by employers and provided to employees by 1st March each year, as per Singapore’s tax regulations. Employees use this information to file their personal income tax returns with IRAS. |
| Appendix 8A | To be filled out if the employee receives non-cash benefits. |
| Appendix 8B | This form should be filled out if the employee has obtained gains or profits, either directly or indirectly, from the exercise, assignment, or release of any share option right or benefit, or from other forms of Share Ownership Plans, where such right or benefit was obtained due to their office or employment. This form should be completed and submitted to the Controller of Income Tax for employees who are Singaporeans or Singapore Permanent Residents and have ceased employment or were posted overseas. |
| Form IR 8S | To be completed if the employer has made excess Central Provident Fund (CPF) contributions on behalf of the employee in Singapore. |
From Year of Assessment (YA) 2016 onwards, employers in Singapore who have 11 or more employees for the entire year, or who have received the “Notice to File Employment Income of Employees Electronically”, are required to submit their employees” income information to the IRAS electronically.
IRAS encourages all employers to join the Auto-Inclusion Scheme (AIS) for Employment Income, where they can submit their employees’ income information electronically. This information will be reflected on the employees’ electronic tax returns and automatically included in their income tax assessments. If you participate in the AIS for Employment Income, you do not need to issue Form IR8A to your employees.
For more information on how to complete necessary forms for your employees, or to learn about e-Submission of Employment Income, please visit the IRAS website at https://www.iras.gov.sg/taxes/individual-income-tax/employers/auto-inclusion-scheme-(ais)-for-employment-income.
For inquiries about the AIS for Employment Income, you can contact IRAS at 1800 356 8015 or email ais@iras.gov.sg.
Additionally, you have the option to enjoy up to 12 monthly interest-free installments or opt for a one-time GIRO (General Interbank Recurring Order) deduction for your income tax payments.
The 12 monthly GIRO installment cycle starts in May and ends in April of the following year. If you apply for GIRO deductions after May, the installment deductions will commence in the month after your application is approved and end in April of the following year.
Filing Income Tax for Partnerships
Although partnerships in Singapore are not subject to income tax, they are still required to file an annual income tax return (Form P) to report all income earned and business expenses deducted during the year. Even if a partnership has not commenced business in the year, it must file Form P if it has received the paper Form P or an invitation to e-File.
For P is typically sent to the precedent partner by mid-March each year, and the precedent partner is responsible for filing on behalf of all the partners. The precedent partner is required to inform all the partners of their share of income from the partnership so that they can declared it in their individual income tax returns.
Please note that Form P is not available for download from the IRAS website. If you need a copy of Form P, you can call the individual Income Tax Helpline at 1800-356 8300.
In addition to Form P, partnerships are also required to report a four-line statement for different periods, clearly indicating the allocation of profit and loss among the partners. Pages 3 and 4 of Form P must be completed for all relevant partners for each relevant period. If the business revenue is S$500,000 or more, Certified Statement of Accounts for the different periods concerned must also be submitted.
The term “Certified”” means that the statement of accounts must be signed by the partner, indicating that the accounts are true and correct. The Statement of Accounts includes the Trading and Profit and Loss Account and the Balance Sheet. The deadline for filing Form P is 15 April, or 18 April if filing electronically (e-File).
Allocation of Profit and Loss to Partners in a Partnership
Once Form P has been processed by IRAS, the ”Allocation of Profit and Loss to Partners’ will be sent to the precedent partner.
The precedent partner is responsible for informing the other partner(s) of their respective shares of profit or loss, which will be taxed under each partner’s name.
Objection to the Allocation of Profit and Loss to Partners
If you disagree with the allocation of profit and loss to partners, you must lodge your objection through the precedent partner. The precedent partner must submit a written objection to IRAS, clearly stating the grounds of objection, within 30 days from the date of allocation notice.
Partnerships with Non-resident Partners
If your partnership includes non-resident partners, please refer to the details ‘on how Section 45 about withholding tax applies to partnerships.
New Partnerships
For newly formed partnerships, please complete the Registration Form for New Partnership, You can download the form or request it to be sent to your fax number by calling the IRAS Business Income Tax Help-Line at 1800-356 8300.
IRAS will send Form P to the precedent partner upon receiving the registration form.
