Find out how to calculate the income tax for tax residents and non-residents.

Sample calculation for tax residents

Example 1: 35-year-old with employment income of $50,000 in 2020

Mr Heng is 35 years old and married. He earned $50,000 in 2020. He has a newborn child in 2020 and is eligible for Parenthood Tax Rebate of $5,000. His chargeable income for the Year of Assessment (YA) 2021 is computed as follows:

Total Employment Income in 2020

$50,000

Less: Donations

$250

Assessable Income

$49,750

Less: Personal Reliefs

 

- Earned Income Relief

$1,000

- Qualifying Child Relief

$4,000

- Employee CPF Contribution Relief

$10,000

Chargeable Income
(Assessable Income less Personal Reliefs)

$34,750
($49,750 - $15,000)

Mr Heng's tax payable on his chargeable income of $34,750 is calculated as follows:

Chargeable Income

Tax Payable

Tax on first $30,000

$200.00

Tax on next $4,750 @ 3.5%

$166.25

Gross Tax Payable

$366.25 ($200 + $166.25)

Less: Parenthood Tax Rebate

$366.25

Net Tax Payable for YA 2021

$0

Mr Heng is entitled to Parenthood Tax Rebate of $5,000 in respect of his first child born in 2020 which is used to offset his income tax payable for YA 2021. The remaining amount ($5,000 - $366.25) will be used to offset his income tax payable in subsequent years until the rebate has been fully utilised.

Example 2: 64-year-old with employment income of $250,000 in 2020

Mr Fong was 64 years old in 2020 and had earned income of $250,000. His chargeable income for YA 2021 is computed as follows:

Total Employment Income in 2020

$250,000

Less: Donations

$250

Assessable Income

$249,750

Less: Personal Reliefs

 

- Earned Income Relief

$8,000

- Employee CPF Contribution Relief

$7,650

Chargeable Income
(Assessable Income less Personal Reliefs)

$234,100
($249,750 - $15,650)

Mr Fong's tax payable on his chargeable income of $234,100 is calculated as follows:

Chargeable Income

Tax Payable

Tax on first $200,000

$21,150

Tax on next $34,100 @ 19%

$6,479

Net Tax Payable for YA 2021

$27,629 ($21,150 + $6,479)

Sample calculation for non-tax residents

Example 3: 26-year-old foreigner who received a salary of $21,000

Mr Gabriel, a Chile national, stayed and worked in Singapore from 1 Aug 2020 to 31 Oct 2020. He received a total salary of $21,000. His chargeable income for YA 2021 is computed as follows:

Total Employment Income in 2020

$21,000

Less: Employment Expenses

$0

Assessable Income

$21,000

Less: Personal Reliefs

N.A.

Chargeable Income
(Assessable Income less Personal Reliefs)

$21,000
($21,000 - $0)

Mr Gabriel's tax payable on his chargeable income of $21,000 is calculated as follows:

Chargeable Income

$21,000

Tax Rate for Non-Residents

15%

Net Tax Payable for YA 2021

$3,150 ($21,000 x 15%)

Example 4: 39-year-old foreigner who received Director's Fees of $85,000

Ms Burch, an American, received Director's fees of $85,000 in 2020. Her chargeable income for YA 2021 is computed as follows:

Director's Fees

$85,000

Less: Employment Expenses

$0

Assessable Income

$85,000

Less: Personal Reliefs

N.A.

Chargeable Income
(Assessable Income less Personal Reliefs)

$85,000
($85,000 - $0)

Ms Burch's tax payable on her chargeable income of $85,000 is calculated as follows:

Chargeable Income

$85,000

Tax Rate for Non-Residents (Director's Fees)

22%

Net Tax Payable for YA 2021

$18,700 ($85,000 x 22%)