The Income tax rate in Singapore is one of the lowest anywhere in the world. There are several other relevant tax rates like employees social security and sales tax - but even when you include these the overall tax burden is very reasonable. Foreign contractors will pay 15-20% of their in-country earnings as tax. Of course an individuals exact income tax liability will depend on their tax residency, amount of chargeable income and the relevant tax codes.
Key Points to Remember regarding personal tax in Singapore:
- Singapore uses a progressive tax rate starting at 2% and ending at 20% for residents - non residents will be taxed at 15% (or the local tax rates if the overall tax burden is higher)
- Singapore only taxes individuals on earnings generated in Singapore.
- Foreigners will only make CPF (employee Social Security) contributions once they become a permanent resident. Locals pay 20% of their salary to the CPF.
Send us your details with specific information regarding your current situation if you wish to discuss net retention for Singapore. Our partnership with Contractor Management companies will help you net the highest possible percentage of your gross income while at the same time ensuring that you have complied with all regulations of Singapore and your home country. We can also help answer any question you might have about Singapore Social Security.