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The period from March 1 to April 18 each year is a critical time for filing personal income tax in Singapore. Whether you are a new immigrant or a long-time resident, tax filing can often be a headache. Don’t worry—this guide will provide a detailed breakdown of the 2025 Singapore personal income tax filing process, including tax residency determination, tax rate structure, filing procedures, and deduction policies, helping you navigate tax filing with ease and avoid unnecessary penalties.

Who Needs to File Taxes?

Singapore categorizes taxpayers into tax residents and non-tax residents. The specific criteria are as follows:

Tax Residents

In any Year of Assessment (YA), individuals who meet any of the following conditions will be considered Singapore tax residents:

1. Singapore Citizens or Permanent Residents (PRs): Ordinarily residing in Singapore, with temporary absences not affecting residency status.
2. Foreigners:
   • If you are a foreigner and meet any of the following criteria, you will also be considered a tax resident:
     a. Stayed or worked in Singapore for 183 days or more in the previous calendar year;
     b. Stayed or worked in Singapore continuously for 3 calendar years;
     c. Worked continuously across 2 calendar years with a total stay of 183 days or more.
3. Holders of work passes valid for 1 year or more (e.g., Employment Pass, S Pass).

*Note: When you leave your job and undergo tax clearance, the Inland Revenue Authority of Singapore (IRAS) will reassess your residency status based on the actual number of days stayed. If the actual stay is less than 183 days, you will be reclassified as a non-tax resident upon departure.

Non-Tax Residents

Individuals who do not meet the criteria for tax residency, typically including:

1. Foreigners who stayed in Singapore for less than 183 days in the previous Year of Assessment;
2. Singapore citizens or PRs who reside overseas long-term and no longer ordinarily reside in Singapore.

Tax Treatment for Non-Tax Residents

1. Taxable Income Scope
   • All income derived from Singapore is taxable, including employment income, director’s fees, consultancy fees, rental income, etc.
   • Foreign-sourced income (i.e., income not derived from Singapore) is generally not taxable.
2. Tax Benefits and Deductions
   • Eligible for:
     • Deductions for reasonable work-related expenses (e.g., necessary work expenses).
     • Deductions for qualifying donations (e.g., donations to approved Singapore charities).
   • Not eligible for:
     • Personal reliefs (e.g., child relief, spouse relief) are not applicable to non-tax residents.
3. Tax Rates and Taxation Methods
   • Employment income for non-tax residents will be taxed at the higher of the following:
     • Flat rate: 15%
     • Progressive tax rates applicable to tax residents (0% – 24%).

Tax Rate Structure and Filing Threshold

Singapore’s personal income tax follows a progressive tax rate system. After deducting tax reliefs, the tax rate for the previous year’s income ranges from 0% to 24% (Note: The previous maximum rate was 22%; see the new rates in the table below). Tax residents are entitled to personal income tax deductions and reliefs for items such as child relief, course fees, insurance premiums, and CPF contributions.

*If your annual income is below S$20,000, you are not required to pay personal income tax.

Tax Filing Process

1. Filing Period
   • March 1 to April 15: Submit paper or electronic filings;
   • April 18: Deadline for electronic filing.
2. Required Documents
   • Form IR8A;
   • Details of dependents’ relief claims;
   • Rental income and other income details (for property owners);
   • Business registration number and partnership tax reference number (for self-employed individuals and partnerships).
3. Filing Steps
   • Log in to the IRAS website at mytax.iras.gov.sg;
   • Use Singpass to log in;
   • Submit the tax return via the E-filing system;
   • Pay the tax within 1 month after receiving the Notice of Assessment.

Important Notes:

• Late payment incurs a 5% penalty;
• After receiving the notice, verify the accuracy of the information and raise any objections within 30 days if necessary.

Tax Payment Methods:

IRAS offers multiple payment methods, with GIRO auto-debit being the recommended option, supporting interest-free installment payments over 12 months. Other payment methods include:

• PayNow (scan QR code);
• Internet banking;
• DBS PayLah!;
• Phone banking (available for DBS/POSB, OCBC, and UOB only);
• ATM payment (available for DBS/POSB and OCBC only);
• AXS online platform or AXS machines;
• SAM (Self-service Automated Machines) online platform and stations;
• NETS (available at post office counters only);
• Credit card payment (via AXS stations);
• Cheque;
• Telegraphic transfer, VBOX.

Personal Income Tax Deductions and Reliefs:

Tax residents can apply for various deductions and reliefs based on their personal circumstances to reduce taxable income. Key reliefs include:

1. Personal Income Relief: Ranges from S1,000toS1,000toS8,000 depending on age.
2. Charitable Donation Relief: Donations to approved institutions qualify for 2.5 times the donation amount, automatically included in Form IR8A.
3. Child Relief:
   • For children under 16 or full-time students aged 17 and above (income below S4,000):S4,000):S4,000 per child.
   • Disabled children: S$7,500.
   • Working mothers: 15% relief on income for the first child, 20% for the second, and 25% for the third and subsequent children, capped at S$50,000.
4. Spouse Relief:
   • Normal spouse: S$2,000.
   • Disabled spouse: S$5,500.
5. Grandparent Caregiver Relief: Working mothers can claim S$3,000 for grandparents caring for children under 12.
6. Parent Relief: Supporting parents aged 55 and above with annual income below S4,000qualifiesforreliefrangingfromS4,000qualifiesforreliefrangingfromS5,500 to S$14,000 (maximum of two parents).
7. Handicapped Sibling Relief: Supporting disabled siblings qualifies for S$5,500 relief.
8. Course Fee Relief: Relief for course fees incurred by working individuals, capped at S$5,500.
9. NSman (National Serviceman) Relief: Available for NSmen and their families.
10. Life Insurance Relief: Qualifying life insurance premiums qualify for relief, capped at S$5,000.
11. SRS Relief: SRS contributions qualify for dollar-for-dollar relief, with caps of S15,300forcitizens/PRsandS15,300forcitizens/PRsandS35,700 for foreigners.
12. CPF Relief: CPF contributions qualify for relief as per regulations.
13. MediSave Top-Up Relief: Voluntary top-ups to MediSave accounts qualify for relief, capped at S$37,740.
14. Cash Top-Up Relief: CPF cash top-ups qualify for relief, capped at S$16,000.
15. Married Couple or Family Relief: S5,000forthefirstchild,S5,000forthefirstchild,S10,000 for the second, and S$20,000 for the third and subsequent children.
16. MediSave Contributions: Self-employed individuals must contribute to MediSave after receiving the CPF Contribution Notice (NOC) from IRAS. Voluntary MediSave contributions qualify for tax relief if net income exceeds S$6,000 and the individual is a Singapore citizen or PR.
17. Other Deductions: Entertainment expenses for self-employed individuals qualify for relief.

Summary and Recommendations:

• File on Time: Avoid penalties for late filing or payment;
• Plan Deductions Wisely: Maximize available reliefs to reduce tax liability;
• Choose Convenient Payment Methods: GIRO auto-debit is recommended for interest-free installment payments;
• Verify Tax Notices: Ensure the accuracy of filing information and raise objections promptly if needed.

With this detailed guide, we hope you have a clearer understanding of the 2025 Singapore personal income tax filing process. Proper tax planning not only helps avoid unnecessary penalties but also effectively reduces your tax burden.

As a local Singaporean company, SIG Global holds a license from the Accounting and Corporate Regulatory Authority (ACRA). Our finance team comprises certified public accountants and tax professionals. We provide professional tax planning, accounting, and bookkeeping services. If you have any questions or need assistance with Singapore personal income tax filing, feel free to contact us anytime!