Singapore's tax system is one of the most foreigner-friendly on earth. The headline facts — no capital gains tax, no inheritance tax, low income tax rates — are all true. The nuance is in the residency rules, which determine whether you pay the favourable progressive rate or the less favourable non-resident flat rate.
Resident vs Non-Resident: The Key Distinction
You are a tax resident if you worked in Singapore for 183 days or more in the calendar year — OR if you worked here for a continuous period straddling two calendar years (the "straddling year" concession).
Tax Resident
- Progressive rates (see table below)
- First S$20,000 taxed at 0%
- Effective rate on S$100K salary: ~7–9%
- Eligible for personal reliefs
Non-Resident
- Flat 15% on employment income
- OR resident rate — whichever is higher
- Director fees: flat 24%
- No personal reliefs
2026 Resident Tax Rates
| Chargeable Income | Rate | Cumulative Tax |
|---|
| First S$20,000 | 0% | S$0 |
| Next S$10,000 | 2% | S$200 |
| Next S$10,000 | 3.5% | S$550 |
| Next S$40,000 | 7% | S$3,350 |
| Next S$40,000 | 11.5% | S$7,950 |
| Next S$40,000 | 15% | S$13,950 |
| Next S$40,000 | 18% | S$21,150 |
| Above S$320,000 | 22–24% | — |
Source: IRAS — Individual Income Tax Rates
What's Taxable and What Isn't
✓ Not Taxable
- Capital gains (shares, property)
- Dividends received
- Overseas income not remitted to SG
- Inheritances
✗ Taxable
- Singapore employment income
- Bonuses and allowances
- Stock options/RSUs exercised here
- Director fees
Filing Your Return
Tax year: January–December. IRAS issues Form B1 in February/March. E-filing deadline: 18 April.
If your employer is in the Auto-Inclusion Scheme (most large employers), income is pre-filled. Just verify, add any missing income, and submit.
Leaving Singapore mid-year: your employer must file a tax clearance (IR21) before your final day. Your liability is settled via IRAS Clearance Directive before you can depart.
The straddling year concession
If you arrived in October 2025 and worked through all of 2026, IRAS treats you as a tax resident for both years — even though you were only in Singapore a few months of 2025. This means you pay the more favourable progressive rate for that partial year instead of the flat 15% non-resident rate.
For international transfers, Wise typically saves EP holders S$60–100 per transaction compared to DBS or OCBC wire transfer rates.
Rates for YA 2026. Source: IRAS. Consult a tax professional for your specific situation.
Disclaimer: This article is for general informational purposes only and does not constitute legal, financial, or immigration advice. Singapore government policies change regularly — always verify information with official sources or a qualified professional before making decisions.
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