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Payroll taxes in Singapore.

Learn about payroll taxes in Singapore thanks to Horizons’ up-to-date guide.

Horizons is where real, local hiring expertise meets world-class customer service. Quickly and compliantly hire employees in more than 150 countries worldwide, without the need to open a local entity.

What is the average employer tax rate in Singapore?

Corporate income tax on companies is taxed at a flat rate of 17% on chargeable income. This applies to both local and foreign companies.

What is the average employee tax rate in Singapore?

There is no income tax withholding in Singapore and employees are responsible for filing their annual returns with the Inland Revenue Authority of Singapore (IRAS).

The income tax rates for employees is currently as follows:

  • 0%: 0 to 20,000 SGD
  • 2%: 20,000-30,000 SGD
  • 3.5%: 30,000-40,000 SGD
  • 7%: 40,000-80,000 SGD
  • 11.5%: 80,000-120,000 SGD
  • 15%: 120,000-160,000 SGD
  • 18%: 160,000-200,000 SGD
  • 19%: 200,000-240,000 SGD
  • 19.5%: 240,000-280,000 SGD
  • 20%: 280,000-320,000 SGD
  • 22%: above 320,000 SGD.

Employer contributions in Singapore

There are no withholding obligations in Singapore for employers, however, contributions to social security schemes, the Skill Development Levy (SDL) and the Foreign Workers Levy, are required.

Employers contribute 17% of monthly wages into Singapore’s national pension scheme, the Central Provident Fund (CPF). This is up to a maximum contribution base of SGD 6,000 per month, therefore, the maximum amount paid each month is SGD 1,020.

Employers also have to pay a compulsory SDL for each of their  employees. The amount payable for each employee is 0.25% of their monthly total wages subject to a minimum contribution each month of SGD 2 per employee and a maximum of SGD 11.25.

The foreign worker levy is a method of regulating the number of foreign workers in Singapore and  is a monthly levy payable by employers for each Work Permit or S Pass holder hired. The rate will depend on the industry, the worker’s qualifications and the ratio of foreign employees to the total workforce.

Employee contributions in Singapore

Employees contribute 20% of their monthly wages into the CPF each month up to a maximum contribution base of SGD 6,000 per month, therefore, the maximum amount paid each month is SGD 1,200.

Frequently asked questions

The tax bureau of Singapore is called the Inland Revenue Authority of Singapore (IRAS).

Employers are required to contribute 17% of monthly wages into Singapore’s social security scheme, the Central Provident Fund (CPF).

There are no payroll taxes in Singapore.

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