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SALARY PAYMENT IN Singapore Dollar (SGD)
CONTRACT LANGUAGES English
PAYROLL TAX 22%
PAYROLL CYCLE Monthly
TIME TO HIRE 12 hours
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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.
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:
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.
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.
Your business can easily hire employees in Singapore without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
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.
Headquarters
71 Robinson Road #13-153
Singapore 068895
+65 3158 1382
Europe
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
Americas
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
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Headquarters – Singapore
71 Robinson Road #13-153
Singapore 068895
+65 3105 1170
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
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