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Singapore continues to uphold its reputation for a transparent and efficient tax system in 2025. The Inland Revenue Authority of Singapore (IRAS) has maintained a progressive tax regime for residents and a flat rate for non-residents, with notable updates for the current assessment year.
Progressive Tax Rates for Residents
For YA 2025, resident individuals are taxed on income earned in the preceding calendar year (2024) at the following rates:
- 0% on the first S$20,000
- 2% on the next S$10,000
- 3.5% on the next S$10,000
- 7% on the next S$40,000
- 11.5% on the next S$40,000
- 15% on the next S$40,000
- 18% on the next S$40,000
- 19% on the next S$40,000
- 19.5% on the next S$40,000
- 20% on the next S$40,000
- 22% on the next S$180,000
- 23% on the next S$500,000
- 24% on income exceeding S$1,000,000
These rates reflect the government’s commitment to a progressive taxation system, ensuring higher earners contribute a fair share.
Tax Rebate for Residents
The government has introduced a Personal Income Tax Rebate for YA 2025 to alleviate the tax burden. Resident individuals will receive a 60% rebate on tax payable, capped at S$200. This measure aims to benefit middle-income earners and will be automatically applied by IRAS.
Flat Tax Rate for Non-Residents
Non-resident individuals are subject to a flat tax rate of 15% on employment income or resident rates, whichever results in a higher tax amount. Other income, such as director’s fees, consultation fees, and rent, is taxed at 22%.
Filing Deadlines and Procedures
The tax filing season for YA 2025 commenced on 1 March 2025. Taxpayers are required to submit their returns by 15 April 2025 for paper filings or by 18 April 2025 for electronic submissions via the myTax Portal.
IRAS has streamlined the filing process through the Auto-Inclusion Scheme (AIS), where employers submit employees’ income information directly. Taxpayers should verify the pre-filled information and report any discrepancies within 30 days of receiving their Notice of Assessment.
Tax Residency Criteria
An individual is considered a tax resident for a particular Year of Assessment if they:
- Reside in Singapore, except for temporary absences; or
- Are physically present or employed in Singapore for at least 183 days in the previous calendar year.
Tax residency status affects the applicable tax rates and eligibility for reliefs and rebates.
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