Taxes

The details, rates and a link to an online calculator are on this website:
    https://www.iras.gov.sg/irashome/Indivi … Tax-Rates/
If you reside in Singapore for more than 6 months, you are taxed (from the day you arrive) as resident at the rates indicated on the webpage.
If you reside in Singapore for less than 6 months (meaning you leave the country again after a shorter time) you have to pay 15% tax on your income.
The tax is calculated and payable only after the year is over and you made your yearly declaration.
Assuming your salary of S$8500/month was paid 12 times in the preceding year, you will have to pay approx. S$5800 tax for the year.

Hi Beppi. Thanks for the explanations. However I am not clear on one thing.

The tax is calculated and payable only after the year is over and you made your yearly declaration.- Does it mean that I will get full salary for that 1 year and pay the taxes 2019 or they will deduct money from my salary every month?

I will give you a basic example to clear your doubts. Let you joined from May 2, 2018. Then at end of the March 31, 2019. Your employer will submit your full earnings including variable bonus, any taxable claims etc. On the total amounts, IRAS will calculate the total payble amount. They will send you the details calculation to your provided residential address in Singapore, will give you sufficient time to make the payment in available two options:

1. Pay full amount in one slot to their given bank account (you can get payment details in any banks Payee details).

2. Or you may select second option to make payment on installments (through GIRO), where you can pay the same amount in 12 installments with zero interest. So, IRAS will deduct installments from your linked bank account on monthly basis.

Note: In Singapore, gross salary is nothing but your basic salary (before tax).

Hi Surya,

Thanks! So my guess is right. I get full salary till March'19 and then pay in either 1 go, or deduct from my salary .
Actually my start day is 14th of May..very tough period with the EP(2 rejections and overall 2 months and 3 days waiting period), but successfully received the paper ..Finally

Yes, you receive your salary from the employer without any deductions and pay tax to IRAS the next year. Even then, you have a choice of paying all at once or in installment over 12 months.
The rates are quite low (compared to most other countries), so this normally isn'r a major concern.

ludiq999 wrote:

Hi Surya,

Thanks! So my guess is right. I get full salary till March'19 and then pay in either 1 go, or deduct from my salary .
Actually my start day is 14th of May..very tough period with the EP(2 rejections and overall 2 months and 3 days waiting period), but successfully received the paper ..Finally

Tax will NOT deduct from your salary. Read my message once again, I have told you either you will pay full tax amount from your bank account or IRAS will deduct the equated installments amount in each month (on a fixed date) from your linked bank account. Good luck and welcome to Singapore.

Hey Surya,

I understood you perfectly! Thanks you both! Cant wait to come and work in Singapore

I have a question, so I've been studying here for long time until September, but I only start work in November. Am I correct to say that I'll be paying resident tax?

If that's the case, I'll also be filing tax for end of this year by April 2019, correct? But by end of this year, my 2018 accumulated income will definitely be less than the chargable income (<20k). Does it mean for 2018 my tax will be 0%? Seems too good to be true! hahah

You can visit IRAS website to understand the tax structure here. The financial year ends on 31 March (April 01, 2018 to March 31, 2019 is considered as current financial year).

So, your earnings will be calculated at the end of March, 2019.

It’s not resident tax, it’s rather called as Income tax on your earnings (salary, variable bonus, fixed bonus etc)  in Singapore.

Hmm, I haven't heard of the financial year of IRAS ending in March. The website says :

"Year of Assessment
'Year of Assessment' (YA) refers to the year in which income tax is calculated and charged. The assessment is for the income earned in the preceding year, starting on 1 Jan and ending on 31 Dec.

Example: For YA 2018, the assessment is for income earned from Jan to Dec 2017."

But I've heard that the latest time to file is April of the following year.

I understand it's called income tax, but there are two types of income tax, resident tax and non-resident tax. My question was that if I'm considered under resident tax given I've been here for most of the year even if I'll only work for the last two months of this year

Here, it’s paid through two types of FY assessment. One is JAN to DEC, other one is APR to MAR. You can check with your HR for their income tax submission.

FYI, in Singapore, the fiscal year for the calculation of personal income taxes is 1 January to 31 December. The fiscal year for the Government of Singapore and many government-linked corporations is 1 April to 31 March.

In my present organisation, it’s from 01 Apr18 to Mar19, and the  income includes variable bonus which we receive in March, each year.

On residents and non-residents part, it depends on number of days you worked in Singapore. If it’s more than 180 days in a FY then you will consider resident. Tax rate slab system only applies for residents. For non residents, it’s flat rate.

You should clarify your query on FY income declaration with your company HR.