Taxes in Singapore in 2026 for foreigners and companies

Singapore tax rates in 2026: the short version

A professional earning 120,000 Singapore dollars a year pays less than 7% of that in income tax, and the first 20,000 dollars are not taxed at all. Dividends, capital gains, inheritances and foreign income received by individuals are tax-free.

The bill arrives elsewhere. A foreigner buying a flat pays an extra 60% of the price in stamp duty, the registration fee on a car can reach 320% of its customs value, and the low progressive rates only apply to those who actually live or work in the country for at least 183 days a year.

Taxes are run by IRAS, the Inland Revenue Authority of Singapore. It works in years of assessment, YA: in 2026 tax is paid on 2025 income (YA 2026), and 2026 income is declared in spring 2027 (YA 2027). All amounts on this page are in Singapore dollars (SGD); in 2026 one US dollar buys about 1.28 SGD.

The main changes of 2025-2026 hit businesses and homeowners. Companies get a 50% rebate on corporate tax for YA 2026, capped at SGD 40,000. The monthly salary ceiling for CPF contributions rose to SGD 8,000 on 1 January 2026, and workers over 55 now contribute more. Homes bought from 4 July 2025 attract seller's stamp duty if sold within 4 years rather than 3.

The personal income tax scale has not changed since YA 2024. Unlike the previous two years, the government granted no personal income tax rebate for YA 2026: Budget 2026 channelled support into direct payouts to Singapore citizens, which do not reach foreigners.

Compare taxes in 146 countries: relocation taxes 2026

Who becomes a Singapore tax resident

Residency can multiply the tax bill. On a salary of SGD 60,000 a year a resident pays about SGD 1,900, while a non-resident pays SGD 9,000, almost five times more: non-residents are taxed at a flat 15% with no reliefs.

Status is based on the previous calendar year: for tax on 2026 income (YA 2027), IRAS looks at the days spent in Singapore in 2026. The type of visa does not matter; physical presence and work in the country do. The IRAS rules are as follows.

Status arises from the facts, with no application needed: 183 days in a year means resident rates. It works the other way too: a contract from October to February is about 150 days, short of 183 in each year and in total, so the salary for both years is taxed at non-resident rates.

Companies follow a different rule. A company is a Singapore tax resident if its control and management, meaning the board's strategic decisions, is exercised in Singapore. Only a resident company gets a Certificate of Residence (COR), without which double tax treaty benefits do not apply. A company actually run from Moscow or Dubai risks losing them.

Singapore status does not cancel obligations at home: Russian tax residency, for example, continues with 183 days in Russia within 12 consecutive months. How to count the days is explained in our article on tax residency and the 183-day rule.

Singapore tax residency: how to become a resident and count the days

Singapore makes you resident with 183 days or more in a calendar year. The tax for a year is paid in the next one, so the 2026 tax looks at days in 2026. Singapore citizens and permanent residents who live in the country are resident without counting.

The difference is large: a resident pays 0-24% on a scale with reliefs, while a non-resident pays 15% on salary, or resident rates if higher, with no reliefs. Individuals' foreign income is usually not taxed. The status is confirmed by the Inland Revenue Authority of Singapore.

The law does not stop you from confirming the status on your own. But mistakes cost more: 180 days instead of 183 turn into a flat rate without reliefs. Murblz support removes these risks: we count days, check the special rules for employees and obtain the certificate. We guarantee professional work and a transparent process, and in most cases a result on the first filing.

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Singapore income tax rates and take-home pay

The top 24% rate only starts above SGD 1 million a year. Up to SGD 80,000 the marginal rate never exceeds 7%, so a professional earning up to SGD 150,000 a year pays less than 10% of income in tax. By comparison, salaries tax in Hong Kong is capped by a standard rate of 15-16%, while neighbouring Malaysia has a top resident rate of 30%.

The resident scale has applied since YA 2024, meaning 2023 income, and is unchanged in 2026.

Worked example: a salary of SGD 10,000 a month

Take a salary of SGD 10,000 a month, SGD 120,000 a year, for an employee under 55. We compare three cases: a foreigner on an EP (Employment Pass, the work visa for professionals) who has become tax resident; a Singapore citizen or permanent resident from the third year of status; and the same income taxed at non-resident rates. This is an illustrative calculation with no extra reliefs for children, insurance or retirement savings.

The foreigner takes home the most because there are no CPF contributions, but also builds up no retirement savings in Singapore. Citizens and PRs pay less tax, and their own SGD 19,200 plus the employer's SGD 16,320 go into their CPF accounts for housing, healthcare and retirement, so it is savings rather than pure cost.

What is tax-free and which reliefs apply

Foreign income received in Singapore by an individual is exempt unless it comes through a Singapore partnership. Dividends from Singapore companies are tax-free, and so, as a rule, is interest on deposits with approved Singapore banks. Rental income is taxed on the scale, with expenses deducted as incurred or as a flat 15% of the rent (mortgage interest is deducted separately).

Tax reliefs cover children, parents, CPF contributions and the voluntary SRS (Supplementary Retirement Scheme), up to SGD 80,000 a year in total. Non-residents get no reliefs.

The Personal Income Tax Rebate varies from year to year. For YA 2024 it was 50% of tax capped at SGD 200, for YA 2025 60%, again capped at SGD 200. There is no rebate for YA 2026, so residents pay the full scale on 2025 income.

When a foreign employee leaves, tax clearance under form IR21 applies: the employer must notify IRAS at least one month before the employment ends and hold back payments to the employee until the tax is settled.

Payroll contributions: CPF and the skills levy

For citizens and permanent residents up to age 55, CPF contributions take 37% of salary, more than income tax on an average wage. Foreigners on work passes are outside the system entirely: neither they nor their employers pay CPF.

The CPF (Central Provident Fund) is not a tax paid into the budget but compulsory savings held in personal accounts for retirement, housing and healthcare. Contributions are mandatory for Singapore citizens and PRs earning more than SGD 50 a month. Rates depend on age and were raised for workers over 55 on 1 January 2026.

These rates apply to wages above SGD 750 a month. Contributions are calculated on ordinary wages of up to SGD 8,000 a month: this Ordinary Wage ceiling rose from SGD 7,400 in 2025. Including bonuses, contributions are capped at SGD 102,000 of pay a year. The maximum monthly contribution for an employee under 55 is therefore SGD 1,600, and SGD 1,360 for the employer.

New PRs pay reduced rates for the first two years. The 2026 increase for workers aged 55-65 goes entirely into their retirement account, and Budget 2026 announced a further rise for this age group from 2027.

SDL and other employer costs

Employers pay the SDL (Skills Development Levy) for all employees, foreigners included: 0.25% of the first SGD 4,500 of monthly pay, at least SGD 2 and at most SGD 11.25 a month. It is not deducted from salary. For staff on an S Pass (for mid-skilled workers) or a Work Permit (for lower-skilled workers) the employer also pays a monthly foreign worker levy; there is no such levy for EP holders.

An illustrative calculation for the employer: a salary of SGD 10,000 a month costs SGD 11,371.25 for a citizen under 55 (plus SGD 1,360 CPF and SGD 11.25 SDL) and SGD 10,011.25 for a foreigner on an EP.

Self-employed citizens and PRs with net trade income above SGD 6,000 a year must contribute to MediSave, the healthcare account within CPF. Foreigners who have not become PRs are not covered by this requirement.

Singapore corporate tax: 17% on paper, much less in practice

Singapore's 17% corporate rate is a headline, not the real bill. A company with SGD 100,000 of profit pays about 8% thanks to the partial exemption, a new company pays about 4% in its first three years, and for YA 2026 the state also writes off half the tax. By comparison, Russia's profit tax rate has been 25% since 2025, and the UAE charges 9% on profit above AED 375,000.

The rate is the same for local and foreign companies. Two exemptions under section 43 of the Income Tax Act 1947 reduce the taxable base, and a company uses one of them.

The start-up exemption has three conditions: the company is incorporated in Singapore, is tax resident there, and has no more than 20 shareholders, all of them individuals, or at least one individual holding at least 10% of the shares. Investment holding companies and property developers do not qualify.

How much a company pays: worked example

These figures are before the YA 2026 rebate. In the 12 February 2026 Budget the government announced a 40% corporate tax rebate, and on 7 April 2026, citing the energy crisis, raised it to 50%. The result for the 2025 financial year: a rebate of 50% of tax, but no more than SGD 40,000 per company including the cash grant. Active companies that employed at least one local employee in 2025 receive at least SGD 2,000 as a cash grant. The rebate goes to all taxpaying companies, non-residents included. For example, a company with SGD 100,000 of profit pays about SGD 4,040 after the rebate instead of SGD 8,075.

Dividends, foreign income and the global minimum tax

Singapore runs a one-tier system: corporate tax paid by the company is final, and dividends to shareholders, resident or foreign, are not taxed and suffer no withholding. There is no second layer of tax in Singapore, but the owner will probably have to declare the dividends in their country of residence.

A company's foreign income is taxed when received in Singapore. Foreign dividends, branch profits and service income are exempt if they have already been taxed abroad and the headline corporate tax rate there is at least 15%. Since 1 January 2024, section 10L taxes gains from selling foreign assets received in Singapore by a company in an international group that lacks real presence in Singapore (office, staff, spending).

For large groups with revenue of at least EUR 750 million, the Multinational Enterprise (Minimum Tax) Act 2024 applies from financial years starting on or after 1 January 2025, topping the effective rate in Singapore up to 15%. Small and medium-sized businesses are not affected.

Budget 2026 also added deductions: for example, in YA 2027 and YA 2028 spending on artificial intelligence of up to SGD 50,000 a year can be deducted at 400%. How to set up a company and what it must file is covered on our pages on company registration in Singapore and audit and reporting.

Singapore GST rate and when to register

Singapore's GST, its goods and services tax, is 9%, less than half of Russia's 22% VAT. But the rate has risen two years running: from 7% to 8% on 1 January 2023 and to 9% on 1 January 2024. The registration threshold is high at SGD 1 million of turnover a year, so most small companies and freelancers never register for GST.

When registration is compulsory

The threshold is tested two ways. Retrospectively: if taxable turnover for the calendar year exceeded SGD 1 million, the application is due between 1 and 30 January of the following year. Prospectively: if at any point turnover can reasonably be expected to exceed SGD 1 million over the next 12 months, the application is due within 30 days. Voluntary registration is possible, for example to recover input tax, but then the business must stay registered for at least two years.

Overseas companies selling online services (subscriptions, apps, online courses) or low-value goods to consumers in Singapore register under the simplified OVR (Overseas Vendor Registration) regime. The test is twofold: global turnover above SGD 1 million and sales to such customers in Singapore above SGD 100,000 a year.

GST returns are usually filed quarterly, with tax paid within one month of the quarter's end. A late return costs SGD 200 immediately and another SGD 200 for each completed month, up to SGD 10,000 per return. Late payment attracts a 5% penalty, and if the debt is still unpaid 60 days later, a further 2% a month, up to 50% of the debt in total.

Taxes for sole proprietors, freelancers, start-ups and family offices

Singapore has no special tax regime for freelancers, IT specialists or digital nomads. A sole proprietor pays the same 0-24% scale as an employee, and an individual's foreign income is exempt anyway. Incentives here depend on business structure and the size of capital, not on profession.

The former expat incentive, the NOR (Not Ordinarily Resident) scheme, lapsed after YA 2020, so there are no new tax breaks for incoming workers.

A sole proprietorship is registered with ACRA (Accounting and Corporate Regulatory Authority), the registry of companies and businesses, and its income goes on the owner's personal return. A company does not always win on tax. An illustrative calculation: on SGD 100,000 of profit a resident sole proprietor pays about SGD 5,535, an ordinary company SGD 8,075 and a new company in its first three years SGD 4,250, with dividends then tax-free. The main drawback of a sole proprietorship is liability, not tax: the owner answers for business debts with all personal assets.

Start-up founders have a dedicated entrepreneur visa, the EntrePass, covered on our page about the Singapore start-up residence permit. Such a company is taxed under the general rules, with the new-company exemption for the first three years.

Family offices: a tax exemption for capital

Singapore's best-known regime is the exemption for family office funds. Under section 13O of the Income Tax Act, a fund approved by MAS (Monetary Authority of Singapore, the central bank and financial regulator) pays no tax on income from designated investments. MAS conditions: at least SGD 20 million of assets at application and at least two investment professionals. The enhanced section 13U scheme requires SGD 50 million and three professionals. A further condition is annual business spending in Singapore of SGD 200,000 to SGD 1 million, depending on assets.

A family office is one of the options under the GIP (Global Investor Programme) for investor permanent residence, described on our page on Singapore PR by investment. The tax exemption and PR are two separate decisions by two different agencies, and one does not automatically lead to the other.

Property, car, inheritance and crypto taxes in Singapore

A foreigner buying a SGD 2 million flat in Singapore hands the state about SGD 1.27 million in stamp duty at completion, close to two-thirds of the price on top. It is the most expensive entry point in the whole tax system, and deliberately so: the government uses it to cool the housing market.

Three duties apply to homes. BSD (Buyer's Stamp Duty) is the basic duty, from 1% on the first SGD 180,000 up to 6% on the amount above SGD 3 million. ABSD (Additional Buyer's Stamp Duty) depends on the buyer's status and the number of properties owned.

A worked example for a SGD 2,000,000 flat: basic duty is SGD 69,600, the foreigner's additional duty SGD 1,200,000, a total of SGD 1,269,600. A Singapore citizen buying a first home pays only SGD 69,600. US citizens, under the free trade agreement, pay the same as Singapore citizens on their first home. Investment property options for foreigners are covered on our page on investment property in Singapore.

The third duty, SSD (Seller's Stamp Duty), applies to quick resales. For homes bought from 4 July 2025 it is 16% of the price on a sale in the first year, 12% in the second, 8% in the third and 4% in the fourth; after four years there is no duty.

Annual property tax

Property tax is based not on price but on AV (Annual Value), the amount the property could be let for over a year. The rate depends on whether the owner lives there.

A worked example: a flat that could be let for SGD 3,000 a month has an annual value of SGD 36,000. If the owner lives there, the tax is SGD 960 a year, or SGD 864 after the one-off 2026 rebate for private homes (10%, capped at SGD 500). If it is let out, the tax is SGD 4,800, more than five times as much. For public HDB (Housing and Development Board) flats the 2026 rebate is 15%. Rental income is also subject to income tax: on the scale for residents, at 24% for non-residents.

Cars, inheritance, capital gains and crypto

In Singapore a car is taxed less through taxes than through the right to own it. First comes a COE (Certificate of Entitlement), the right to own a car for 10 years, priced at auction. Then comes the ARF (Additional Registration Fee), charged on the OMV (Open Market Value, the car's customs value): from 100% on the first SGD 20,000 up to 320% on the amount above SGD 80,000. Part of the fee (PARF) is refunded when a car is deregistered early, but for cars with COEs obtained from February 2026, Budget 2026 cut the refund by 45 percentage points and halved its cap to SGD 30,000.

There is no inheritance tax: estate duty was abolished for deaths on or after 15 February 2008. There is also no gift tax and no wealth tax. Capital gains, including on shares, are not taxed for individuals unless the dealings amount to a trade: frequent resales of flats or securities can be treated as a business, and the profit is then taxed on the scale.

The same rules apply to crypto. Gains on tokens bought as a long-term investment are not taxed; income from trading tokens as a business is subject to income or corporate tax. Transactions in digital payment tokens are exempt from GST.

Non-resident taxes and the Russia-Singapore double tax treaty

On 8 August 2023 Russia suspended the key articles of its tax treaty with Singapore, and Russia no longer applies the reduced rates on dividends, interest and royalties. In practice the loss is smaller than it looks: Singapore does not withhold tax on dividends at all, treaty or no treaty.

Withholding on payments to non-residents

When a Singapore company pays a foreign recipient, it withholds part of the payment and remits it to IRAS as withholding tax. The domestic rates are as follows.

A double tax treaty can reduce these rates, but only if the recipient is a tax resident of the treaty partner and can prove it. Singapore has signed comprehensive treaties, limited treaties and exchange of information arrangements with around 100 jurisdictions.

What is left of the treaty with Russia

The agreement between the governments of Russia and Singapore was signed in Moscow on 9 September 2002, with a protocol signed in 2015. Russian Presidential Decree No. 585 of 8 August 2023, followed by Federal Law No. 598-FZ of 19 December 2023, suspended articles 5-22 and 24 of the treaty and paragraphs 3.1-7 of the protocol with effect from 8 August 2023.

The suspended provisions cover permanent establishments, business profits, dividends, interest, royalties, employment income and other income. The general provisions, the residence definition, the article on eliminating double taxation and the exchange of information between tax authorities remain in force. The treaty is suspended, not terminated. Singapore has not officially announced a reciprocal suspension.

For Russian tax residents the practical effects are these. On payments from Russia to a Singapore company, the Russian tax agent withholds at domestic rates: 15% on dividends and 20% on interest and royalties. Dividends from Singapore arrive without withholding, and in Russia they are subject to personal income tax at 13%, rising to 15% on the part of annual income above RUB 2.4 million. If a Russian tax resident controls a Singapore company, Russian controlled foreign company rules apply: notifications and, in some cases, tax on undistributed profits; see our page on CFC compliance.

Singapore's treaties with other former Soviet countries

The table shows Singapore withholding tax under the treaties for recipients who have proven residence and meet the treaty conditions. Tax in the recipient's country is calculated separately under its own rules.

Singapore tax filing deadlines and penalties

IRAS can stop a tax debtor from leaving Singapore: a travel restriction is listed among its recovery powers, alongside collecting the debt through a bank or employer. The filing itself is simple for most: employers send salary data to IRAS, and an individual's return often comes down to checking fields that are already filled in.

Form C-S is for Singapore companies with revenue up to SGD 5 million, Form C-S (Lite), with six fields, for those with revenue up to SGD 200,000, and everyone else files the full Form C.

Penalties and sanctions

Tax not paid on time attracts an immediate 5% penalty. If the debt is still unpaid 60 days later, a further 1% is added for each completed month, up to 12% in total. IRAS can also recover the money through a bank, employer or tenant and issue a TRO (Travel Restriction Order) barring departure from the country.

An unfiled personal return leads to an estimated assessment, payable within one month, and an offer to compound the offence for up to SGD 5,000. If returns are not filed for two years or more, the case goes to court, where the penalty is twice the tax assessed plus a fine of up to SGD 5,000, and failure to pay can mean up to 6 months in prison. A company filing late faces penalties of up to SGD 5,000, and directors are responsible for filing even if the preparation has been outsourced.

A late GST return costs SGD 200 at once and SGD 200 for each further month, up to SGD 10,000; late GST payment costs 5% and then up to 2% a month, up to 50% of the debt in total. Correcting your own mistake is cheaper: IRAS runs a voluntary disclosure programme with reduced penalties.

Who gains from Singapore taxes and who does not

Singapore rewards those who live and work here and offers almost nothing to those who only want an address. The main benefits, from the 0-24% scale to corporate exemptions and tax treaty access, depend on 183 days in the country, a real office and running the business from Singapore.

It suits high earners: a resident foreigner on SGD 200,000 a year pays about 10.5% in tax and no CPF. Owners of operating businesses genuinely run from Singapore: 4-8% on profit up to SGD 200,000 and 0% on dividends. Investors and rentiers: foreign income, capital gains and inheritances are not taxed. Families with capital of SGD 20 million or more, who can use the family office regime.

It does not suit those who want to buy a home straight away: a foreigner pays an additional 60% of the price in duty, which wipes out the benefit of low taxes for years. Those counting on nominal residency: without 183 days in the country, non-resident rates of 15-24% apply, and a company actually managed from another country risks not qualifying as a Singapore tax resident. And those who remain Russian tax residents: the treaty is suspended, and Russian tax on worldwide income and CFC rules continue to apply until residency changes.

Banking is another practical point. In 2022 Singapore imposed restrictive measures against Russia, so opening an account for a company with Russian owners needs preparing well in advance; options are covered on our page on business accounts in Singapore. For visas, companies and tax status, a good starting point is our Singapore country overview, and Singapore can be compared with other jurisdictions in our section on taxes by country.

Murblz specialists register companies abroad and calculate the tax burden for a specific income structure, while legal support is provided by Murblz specialists together with locally licensed partners. We quote the cost after reviewing the documents.

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