Guide to Singapore's Tax System and Rates in 2025

Singapore is known for its competitive tax system: simple, predictable, and designed to support both businesses and individuals. In 2025, a few changes stand out, including a one-time SG60 personal tax rebate, a corporate income tax rebate, and the continuation of GST at 9%.

This guide walks you through the essentials of Singapore’s tax system, from personal and corporate income tax to Goods and Services Tax  and other key levies. We’ll also explain filing deadlines, available rebates, and how Singapore’s network of tax treaties helps prevent double taxation.

Whether you are setting up a company, relocating as an expat, or simply comparing international tax regimes, this article shows how Singapore’s tax system works today, and why it remains one of the world’s most attractive places to do business.

In Singapore, both individuals and companies are taxed only on income sourced in the country. Foreign income is taxable only if it is received in Singapore by tax residents.

Every taxpayer in Singapore, whether an individual or a company, is identified through a Tax Identification Number. This number is used in all interactions with the Inland Revenue Authority of Singapore (IRAS), the statutory board that administers and collects these taxes on behalf of the government.

Below are the current rates for residents and companies in 2025.

In Singapore, personal income tax applies only to tax residents for a given Year of Assessment (YA). Non-residents are subject to different rules, which we’ll cover later in this guide.

You are considered a tax resident in Singapore if you meet one of the following conditions:

1. You are a Singapore Citizen or Singapore Permanent Resident who resides in Singapore; or
2. You are a foreigner who has stayed or worked in Singapore for at least 183 days in the previous calendar year; or
3. You are a foreigner who has stayed or worked in Singapore continuously for 3 consecutive years, even if the first and/or third year has fewer than 183 days; or
4. You are a foreigner who has worked in Singapore for a continuous period straddling two calendar years and at least 183 days in total. (This excludes company directors, public entertainers, or professionals.)

Once residency is established, income is taxed at progressive rates. The table below shows the applicable income tax brackets for YA 2025, based on income earned in 2024.

For non-residents (those who do not meet the tax residency criteria above), employment income is taxed at a flat 15%, while directors’ fees and certain other income are taxed at 24%. Short-term employment of 60 days or less may be exempt, with some exclusions.

For more details and worked examples, see our full guide to income tax in Singapore for 2025.

All companies — whether incorporated in Singapore or operating here via branches or subsidiaries — are liable to tax on income that accrues in or is brought into the country.

The standard corporate tax rate is a flat 17%, applied to chargeable income. Singapore also uses a one-tier corporate tax system, meaning that once business profits are taxed at the company level, dividends paid to shareholders are not taxed again.

In addition, for YA 2025, the Singapore government introduced a Corporate Income Tax (CIT) Rebate of 50% of tax payable, capped at SGD 40,000. Companies that employed at least one local employee in 2024 will instead receive a CIT Rebate Cash Grant of SGD 2,000, with any remaining rebate adjusted so that the total benefit does not exceed SGD 40,000.

Alongside tax rebates, Singapore supports business owners through targeted government schemes. In particular, SME grants for non-residents are available to those who set up and operate companies locally, offering an additional layer of support beyond the tax system.

Singapore levies a Goods and Services Tax (GST) on most goods and services, including imports. Comparable to VAT in other countries, GST is a broad consumption tax. The rate rose to 9% on 1 January 2024 and continues to apply in 2025.

The 9% rate does not cover everything. Financial services, residential property, investment precious metals, and digital payment tokens are exempt, while exports and international services are zero-rated at 0%.

A business must register for GST once its annual taxable turnover passes SGD 1 million. From that point, it must charge GST on sales but can also recover the GST it pays on eligible expenses.

What makes GST different from an income tax is the way it’s collected. Each business in the supply chain adds GST to its sales, then claims back the GST paid on its purchases. In the end, the burden falls only on the final consumer, not on the companies in between.

Beyond personal income tax, corporate tax, and GST, there are several other taxes and levies that may apply depending on your situation — for example, if you own property, employ foreign workers, or engage in cross-border transactions.

Many newcomers, especially foreigners, mistake the Central Provident Fund (CPF) for a tax.

In reality, CPF is Singapore’s compulsory social security scheme for Citizens and Permanent Residents, with contributions going into personal accounts for retirement, housing, and healthcare. Most importantly, CPF contributions are not taxed — they remain your money.

If you wish to voluntarily save for retirement, the government offers the Supplementary Retirement Scheme (SRS), which is open to both Singaporeans and foreign workers.

Knowing the tax rates is only part of the picture. You also need to be clear on when to file and how to pay. Filing deadlines in Singapore differ for individuals, companies, and GST-registered businesses, and payment is generally due within one month of receiving a Notice of Assessment (NOA).

The table below highlights the key dates for 2025.

For many foreigners working or running businesses in Singapore, a key concern is being taxed twice on the same income — once in Singapore and once abroad. Singapore addresses this through a wide network of double taxation agreements (DTAs) with nearly 100 jurisdictions, as well as a unilateral tax credit system where no treaty applies.

Singapore has double taxation agreements (DTAs) with around 100 jurisdictions to prevent double taxation. These agreements allocate taxing rights between Singapore and the partner country, covering income types such as employment income, business profits, dividends, interest, royalties, director’s fees, and property income.

For individuals, DTAs often exempt short-term employment in Singapore if the following conditions are met:

1. Time in the source country is below the treaty limit (often 183 days in any 12-month period)
2. The employer is not resident in the source country
3. The pay is not borne by a permanent establishment there

For companies, DTAs can reduce foreign withholding taxes on payments like dividends or royalties. However, some DTAs provide withholding rate reductions.

If no DTA applies, Singapore tax residents may claim a unilateral tax credit to offset tax paid overseas against the tax payable in Singapore on the same income. To qualify, your company must be a Singapore tax resident for the year, the income must have been taxed overseas, and it must also be taxable in Singapore.

For instance, if a Singapore resident company receives interest from a country with no DTA, it can use the unilateral credit to offset tax already paid abroad against its Singapore tax liability.

However, credits are not always available.

• No credit is available when the company is in a loss position because there is no Singapore tax liability to offset.
• A company with a permanent establishment abroad can only claim credit if the income from that establishment is also taxed in Singapore.
• Credit for passive income such as interest or dividends is only granted once the income is remitted and taxed in Singapore.

The way DTA or unilateral tax credit relief is claimed depends on the type of tax.

• Individual income tax: Individuals covered under a DTA claim exemptions or credits when filing their personal income tax return. A Certificate of Residence from their home country is usually required to confirm eligibility.
• Corporate income tax: Companies claim foreign tax credits when filing their annual Form C (not Form C-S or C-S Lite). No documents need to be submitted upfront, but supporting evidence such as Certificates of Residence or proof of tax paid must be kept and provided to IRAS if requested.
• Withholding tax: For cross-border payments to non-residents, DTA relief must be claimed when submitting the withholding tax return. A Certificate of Residence (or Form IR586 for non-resident professionals) must be uploaded by the stipulated deadline.

Foreign income may still be taxable in the country where it arises, even if you are a tax resident in Singapore. To benefit from DTA provisions abroad, you will usually need to provide a COR issued by IRAS to the foreign tax authority or to the payer of your income as proof of your Singapore residency. IRAS does not automatically share your residency status with other jurisdictions, though information may still be exchanged under international agreements when required.

Early efforts to introduce income taxation in Singapore were tied to wartime needs. A War Tax Ordinance was passed in 1917 during World War I, and another income tax attempt was introduced in 1941, though it was cut short by the Japanese occupation.

Modern income taxation was formally established under the Income Tax Ordinance of 1947, with assessments beginning in November 1948. This ordinance was based on a model framework for British colonies at the time.

Following independence in 1965, Singapore prioritised industrialisation and export growth. To support this, the government enacted the Economic Expansion Incentives (Relief from Income Tax) Act 1967.

The law granted significant tax exemptions, including up to 90% relief on increased export income over a fixed base, as well as exemptions on interest paid for approved foreign loans granted to local industrial companies. These measures helped attract foreign capital and build Singapore’s export-oriented economy.

The focus in the 1970s shifted towards developing Singapore into a regional financial centre. In 1973, tax exemptions were extended to non-resident interest income from Asian Dollar Bonds, encouraging growth of the Asian Dollar Market.

The government also expanded incentives for the maritime sector, granting income tax exemptions for shipping operations and the charter of Singapore-registered vessels through Maritime Sector Incentives. These initiatives reflected a broader policy to diversify the economy into services and international finance.

In the 1980s, Singapore was more developed and became an expensive place for businesses. Facing competitiveness pressures, the Government adopted the Economic Committee’s 1986 direction to lower direct taxes. In 1987, the headline corporate income tax rate was reduced from 40% to 33%, marking the first major cut.

This also marked the beginning of a long-term trend of lowering rates to attract investment while broadening the tax base through other measures.

On 1 September 1992, the IRAS was established as a statutory board, replacing the Inland Revenue Department, to modernise and streamline tax collection.

Two years later, on 1 April 1994, the Goods and Services Tax (GST) was introduced at 3%, marking a shift towards indirect taxation that complements Singapore’s strategy of keeping personal and corporate income tax rates low.

Since the 2000s, tax policy in Singapore has emphasised fostering innovation, attracting talent, and maintaining international competitiveness. The current corporate income tax rate is 17%, while individual income tax rates are progressive up to 24%. Alongside these headline rates, Singapore maintains a wide network of tax treaties and targeted incentive schemes to support both businesses and individuals.

Singapore has evolved into one of the world’s most attractive locations for both businesses and individuals, thanks to its competitive and transparent tax system. It is recognised as one of the best tax haven countries in the world, offering low tax rates, efficiency, and international competitiveness together with strong regulation and credibility. The government and IRAS have played a central role in maintaining this balance of growth and compliance.

For entrepreneurs or companies looking to establish a presence in Singapore, understanding tax is only the first step. Incorporation, tax filing, and ongoing accounting are equally important to get right. At Statrys, we support businesses with company setup and tailored accounting services by handling the details of incorporation, accounting, and tax filings, freeing you to concentrate on running your business.