Income Tax Act
It is the Government’s policy to keep our individual tax regime competitive to facilitate hard work, innovation, and enterprise of individuals. Singapore’s individual income tax schedule is progressive, with higher income earners paying proportionately more income tax. The current top marginal individual income tax rate is 20%.
Singapore also calibrates its individual income tax regime to remain as a choice location for businesses, entrepreneurship, and talent. For instance, to encourage global talent to relocate and stay in Singapore, Singapore introduced the “Not Ordinarily Resident” or NOR scheme in 2003 to provide new tax residents based in Singapore with regional responsibilities a tax treatment for their income earned in their first few years in Singapore based on their time spent in Singapore. Employees receiving stock options also enjoy partial tax exemption on their stock option gains under the Equity Remuneration Incentive Scheme, thus helping especially SMEs and start-ups to attract and retain talent.
Besides enjoying competitive individual income tax rates, Singapore tax residents could also avail themselves of a range of personal tax reliefs and rebates, that are granted by the Government in recognition of taxpayers’ efforts consistent with worthy social objectives such as taking care of their elderly parents.
Our individual income tax policies underline the Government’s commitment towards making Singapore a place that rewards hard work and enterprise.