In Singapore, individuals are classified as Tax Residents when they are 
i. Singapore Citizen or Singapore Permanent Resident (SPR) who lives in Singapore, OR
ii. Foreigner who work in Singapore for 183 days or more (excludes those who are the director of a company)

Individuals does not fulfill the above are considered Singapore Non-resident, which subjects to a different tax-paying scheme.

 

Individuals are required (by law) to file annual personal tax returns to IRAS by 15 April every year, for the preceding calendar year. Individuals who failed to observed this requirement may subject to heavy fines and/or even court summon.

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The personal income tax rates in Singapore are relatively low and less-taxing when compared to most developed countries. Subject to Tax Residents’ income, it is kept between 0% to 22% in a progressive nature (i.e. the more an individual earns, the higher% the individual pays). For Non-residents (e.g. directors, individuals gaining through rental income, royalty, etc) are subject to the source of gains and tax rate falls between 10% and 22% (YA 2020). On top of the low tax rates, taxpayers are subject to tax deductions when incur certain tax-deductible activities.

 

Owners/founders of different business entities also subject to different tax-paying structure. It is important for business owners to understand the tax structure him/her are bound to before submitting the documents. Alternatively, getting an expert will ease such duties.