General Changes

Personal Income Tax (”PIT”) of Tax-Resident Individual Taxpayers

Current The current progressive PIT rate structure for tax-resident individual taxpayers is as follows:

Current PIT Rates

Chargeable Income (S$) Tax Rate (%) Gross Tax Payable (S$)
On the first
On the next 20,000
10,000 0
2 0
200
On the first
On the next 30,000
10,000 -
3.5 200
350
On the first
On the next 40,000
40,000 -
7 550
2,800
On the first
On the next 80,000
40,000 -
11.5 3,350
4,600
On the first
On the next 120,000
40,000 -
15 7,950
6,000
On the first
On the next 160,000
40,000 -
18 13,950
7,200
On the first
On the next 200,000
40,000 -
19 21,150
7,600
On the first
On the next 240,000
40,000 -
19.5 28,750
7,800
On the first
On the next 280,000
40,000 -
20 36,550
8,000
On the first
In excess of 320,000
320,000 -
22 44,550

Proposed

The new PIT rate structure for tax-resident individual taxpayers, with effect from Year of Assessment (”YA”) 2024, is as follows:

Proposed PIT Rates

Chargeable Income (S$) Tax Rate (%) Gross Tax Payable (S$)
On the first
On the next 20,000
10,000 0
2 0
200
On the first
On the next 30,000
10,000 -
3.5 200
350
On the first
On the next 40,000
40,000 -
7 550
2,800
On the first
On the next 80,000
40,000 -
11.5 3,350
4,600
On the first
On the next 120,000
40,000 -
15 7,950
6,000
On the first
On the next 160,000
40,000 -
18 13,950
7,200
On the first
On the next 200,000
40,000 -
19 21,150
7,600
On the first
On the next 240,000
40,000 -
19.5 28,750
7,800
On the first
On the next 280,000
40,000 -
20 36,550
8,000
On the first
On the next 320,000
180,000 -
22 44,550
39,600
On the first
On the next 500,000
500,000 -
23 84,150
115,000
On the first
In excess of 1,000,000
1,000,000 -
24 199,150

From YA 2024, the income tax rate for non-resident individuals (except on employment income and certain income taxable at reduced withholding rates) will be raised from 22% to 24%.

Extensions to Existing Tax Incentives and Concessions

Withholding Tax (”WHT”) Exemption for Non-Tax-Resident Mediators

Current Non-tax-resident professionals are subject to WHT tax at a rate of 15% on gross income; or they may elect to be taxed at 22% on net income. As a concession, income derived by non-tax-resident mediators from mediation work carried out in Singapore is exempt from tax, subject to conditions.

This exemption is scheduled to lapse after 31 March 2022.

Proposed The existing WHT tax exemption for income derived by non-tax-resident mediators from mediation work carried out in Singapore will be extended till 31 March 2023.

From 1 April 2023, gross income derived by non-tax-resident mediators from mediation work carried out in Singapore will be subject to a concessionary WHT tax rate of 10%, subject to conditions. This concessionary WHT tax rate will apply till 31 December 2027.

Non-tax-resident meditators may alternatively elect to be taxed at 24% on net income, from YA 2024 onwards.

WHT Exemption for Non-Tax-Resident Arbitrators

Current Non-tax-resident professionals are subject to WHT tax at a rate of 15% on gross income; or they may elect to be taxed at 22% on net income. As a concession, income derived by non-tax-resident arbitrators from arbitration work carried out in Singapore is exempt from tax, subject to conditions.

This exemption is scheduled to lapse after 31 March 2022.

Proposed The existing WHT tax exemption on income derived by non-tax-resident arbitrators from arbitration work carried out in Singapore will be extended till 31 March 2023.

From 1 April 2023, gross income derived by non-tax-resident arbitrators from arbitration work carried out in Singapore will be subject to a concessionary WHT tax rate of 10%, subject to conditions. This concessionary WHT tax rate will apply till 31 December 2027.

Non-tax-resident arbitrators may alternatively elect to be taxed at 24% on net income, from YA 2024 onwards.

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