In general, Governments all around the world collect taxes as a means to fund their expenditure.
In Singapore, the main objectives of our tax policy are:
- Revenue Raising This is the traditional aim of tax policy. Tax revenue is a substantial source of funding for government operations.
- Promotion of Economic and Social Goals Tax has been used to influence behaviour towards desirable social and economic goals. For example, to encourage Singaporeans to have more children, tax rebates are given for the first to fourth child.
Examples of taxes in Singapore are:
- Income Tax Income tax is chargeable on income of individuals and companies.
- Property Tax Property tax is imposed on owners of properties based on the estimated annual rent of the property.
- Goods & Services Tax (GST) GST is a tax on consumption. The tax is paid when money is spent on goods or services, including imports.
- Motor Vehicle Tax & Road Tax These taxes are imposed to curb car ownership and road congestion.
- Water Conservation Tax This tax is to encourage residents to conserve water.
- Betting Taxes These are duties on private lottery, betting & sweepstake.
- Casino Tax The casino tax is a new tax levied on the casinos’ gross gaming revenue.
- Customs & Excise Duties Excise duties are imposed principally on tobacco, petroleum products and liquors. Also, very few products are subject to import duties. The duties are mainly on motor vehicles, tobacco, liquor and petroleum products.
- Stamp Duty Stamp duty is a tax on executed documents relating to properties or interest in properties or shares. These documents include a lease, sale and purchase, gift or mortgage of property.
In Singapore, Inland Revenue of Singapore (IRAS) is the governemnt agency responsible for collecting income tax, property tax, goods & services tax, betting taxes and stamp duty.
\[ Tax\;Payable = Tax\;Rate\;\left(in\;\%\right) \times Amount\;Taxable \]
Inland Revenue of Singapore (IRAS)
Goods & Service Tax (GST)
GST was introduced in Singapore on 1 Apr 1994.
GST rates over the years:
| Period | GST Rate |
| 1 Apr 1994 to 31 Dec 2002 | 3% |
| 1 Jan 2003 to 31 Dec 2003 | 4% |
| 1 Jan 2004 to 30 Jun 2007 | 5% |
| 1 Jul 2007 onwards | 7% |
GST should be charged on the final value (inclusive of service charge, if any) of any goods or services consumed in Singapore.
Prices displayed by GST-registered businesses should be the final prices (i.e. GST-inclusive) that you are paying. GST-registered businesses are not allowed to display, quote, advertise or publish prices without GST.
An exception is made for businesses in the hotel and food & beverage (F & B) industries. These businesses may display GST-exclusive prices for goods and services that are subject to service charge (usually 10%). However, a statement informing customers that prices displayed are subject to GST and service charge must be prominently shown.
Note: The service charge is subject to GST as it is part of the price payable for the goods and services provided. Therefore, the GST chargeable should be calculated based on the total price payable (inclusive of service charge).
Guide to GST
Property Tax
Annual Value (AV): It is the estimated annual rent of your property if it were to be rented out, excluding the furniture, furnishings and maintenance fees. It is determined after analysing the rents of similar or comparable properties. The basis of determining the AV is the same whether the property is rented out, owner-occupied or left vacant.
Property tax is payable by all property owners on the properties owned by them, regardless of whether the properties are let out, owner-occupied or left vacant by them. Hence, as long as you own a property, you are required to pay property tax. Property tax cannot be waived regardless of the financial circumstances of its owner.
Note: If your property is rented out, you are also subjected to indivdual income tax on the rental income, on top of the property tax for your property.
Property Tax for Owner-Occupied Homes (from 1 Jan 2011 to 31 Dec 2013) &
Property Tax for Non Owner-Occupied Homes
Property Tax for Owner-Occupied Homes (for 2014 only)
Property Tax for Owner-Occupied Homes (from 2015 onwards)
Examples of Property Tax Calculation for Owner-Occupied Homes
Understanding Your Property Tax Bill
 | 1 This amount shows zero tax balance before the issuance of this bill. |
|---|---|
| 2 This is the Annual Value (AV) of your property. | |
| 3 Property Tax is payable at a rate of 10% per year. For owner-occupied residential properties, the progressive property tax rates apply with effect from 1 Jan 2011:
| |
| 4 This is the new tax position after the issuance of this bill. | |
| 5 This is to inform you that you have arranged to pay your Property Tax via GIRO. |
Individual Income Tax
Year of Assessment (YA): It refers to the tax year in which income tax is calculated and charged. Each YA begins on 1 January and ends on 31 December.
E.g. YA 2013 refers to the tax period from 1 Jan 2012 to 31 Dec 2012.
Individual Income tax: It is a tax imposed on your chargeable income for a YA.
\[Total\;Income = \overbrace {Chargeable\;Income + Personal\;Reliefs/Rebates}^{Assessable\;Income} + Donations\]
Types of Donations
Types of Personal Reliefs and Rebates
Individual Income Tax Rates for Residents (from YA 2012 onwards)
Note: For YA 2013, a personal tax rebate of up to a maximum of $1500 is granted as follows:
- 30% rebate for taxpayers below 60 years of age as at 31 Dec 2012
- 50% rebate for taxpayers 60 years of age & above as at 31 Dec 2012
Individual Income Tax Rates for Non-Residents
- Employment income
Your employment income is taxed at 15% or resident rate, whichever gives rise to a higher tax amount. - Director's fees, consultation fees & all other income
The director's fees, consultation fees and all other income that you received will be taxed at 20% from YA 2005 onwards.
Understanding Your Income Tax Notice of Assessment (NOA)
Individual Income Tax Calculator
Motor Vehicle Tax & Road Tax
Taxes Around the World
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