What is the tax rate in Singapore?
If you’re working in Singapore, it is a must that you should know its tax rate. The main taxes to concern yourself with in Singapore are: company tax, income tax, payroll tax and sales tax. If you are looking at an assignment in Singapore then you probably want to know what tax do I pay as a contractor in Singapore? Tax rates are pretty low - capped at 20% for non-residents. In order to maximise your income and keep administration to a minimum we recommend getting expert advice from a company specialised in tax for expats in Singapore.
Corporate Tax Rate in Singapore
Company (corporate) tax in Singapore is a flat 17%.
Income Tax Rate in Singapore
Income tax is progressively charged from 2-20% based on earnings. It is only calculated on earnings derived in Singapore. For non-residents there is a flat rate of 15%, unless the progressive rate would generate higher tax - in which case the progressive rate is used. The income tax rate for contractors in Singapore is the same as for permanent employees.
Payroll Tax Rate in Singapore
There is no specific payroll tax in Singapore, but employers social security is a mandatory tax for all employers. It is 16% of gross earnings.
Sales Tax in Singapore
Sales tax of 7%, also known as Value added tax, is charged on all purchases.
How to Get the Best Tax Rates in Singapore
The amount of tax you pay in Singapore depends on your income. If you hire an accountant, it is expensive but you can get a better rate. The easiest way for contractors to keep more of your earnings is to use a contractor management company. They are expert in expat taxation so you can be sure to pay less tax. Better still, you don’t have to go to the Singaporean tax office yourself; they will do it for you.
How We Help With Singapore Taxation
We know the best contractor management companies in Singapore and can recommend the best fit for your situation. Our advice is absolutely free.