Singapore Personal Income Tax Guide for First Timers!

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This article was not reviewed by Monetary Authority of Singapore (MAS) or any other relevant authorities.

Entering adulthood can be intimidating. There are many things to learn and do from planning your savings for retirement, starting a family, paying bills to filing for income tax. But don’t you worry! After this article, you’ll be equipped with the basic knowledge for filing your income tax!

Singapore follows a progressive tax system where the tax rate increases as income increases, starting from 0% to a maximum of 22%. 

How do I know if I need to file?

Most of the time, you would receive a letter, form or SMS from the RAS that you need or do not need to file your income tax.

So what if you did not receive anything? That does not mean you don’t have to file your income tax!

You would still be required to file a tax return if your annual net business income exceeded $6,000 or annual income (inclusive of rental income) was more than $22,000 last year.

There is a new initiative called Direct Notice of Assessment (D-NOA) which will be received by selected taxpayers on the No-Filing Service. They will be received any notification from IRAS but will receive their tax bill from May onwards.

How to file for income tax

1. Paper From

Those who prefer to file a paper tax return will receive the relevant tax forms from IRAS between February to March each year. The completed tax form has to be submitted by 15th April each year.

2. E-Filing at myTax Portal

The completed tax form should be e-filed from 1st March to 18th April each year.

Steps to E-Filing Your Tax Return

Step 1: Get a SingPass or IRAS Unique Account (IUS)

Step 2: Prepare documents

Step 3: Log in to myTax Portal

Step 4: Verify your details

Step 5: Update existing tax reliefs 

Step 6: Declare other source of income

Step 7: Receive acknowledgement receipt

How much do I need to pay?

1. Income

There is taxable and non-taxable income.

Some examples of taxable income:

• Employment income
• Salaries
• Bonuses
• Rental income

Some example of non-taxable income:

• Winnings from 4D, TOTO or any betting
• Capital gains from stocks and property investments
• CPF Life Payouts

Do refer to the IRAS website for the full list of what is taxable and what isn’t.

2. Deductions

Deductions refers to any incurred allowable expenses or approved donations being made.

Some examples of deductions:

• Approved donations to recognised charitable organisations and institutions
• Rental expenses

3. Tax reliefs 

Tax reliefs and rebates are targeted at certain groups of taxpayers to promote specific social and economic objectives.

More common tax reliefs are:

-having children (for both parents and working mother)

-staying with parents

-serving the nation

Refer to IRAS website for more details about each tax reliefs and its conditions.

Individual Income Tax Rates

Source: IRAS

How to pay my income tax?

The inevitable time of the year is when you have to pay your income taxes.

There are many electronic payment methods available for you such as PayNow, Internet Banking Bill Payment, DBS PayLah!,  ATM, AXS, SAM Kiosk, Internet Banking Fund Transfer and many more.

Need more help or clarification?

You can always head over to IRAS website!