Taxation of international executives
Are there social security/social insurance taxes in Singapore? If so, what are the rates for employers and employees?
Social security or Central Provident Fund (CPF) contributions are mandatory for Singapore citizens and permanent residents who are employed in Singapore. Foreign individuals working in Singapore are not eligible for the CPF scheme.
Under the Scheme, the employer and employee are required to make monthly contributions at the prevailing contribution rates which are contingent upon the wage and age group of the employee.
In general, the employer and employee are required to make CPF contribution on the employee’s Ordinary Wage and Additional Wage subject to an Annual Wage Ceiling.
Prior to 1 January 2016, the wage cap for Ordinary Wage is SGD5,000 per month while the Annual Wage Ceiling is SGD85,000.
From 1 January 2016, the wage cap for the Ordinary Wage is revised to SGD6,000 per month while the revised Annual Wage Ceiling is SGD102,000.
Additional Wage is limited to the difference between the prevailing Annual Wage Ceiling (SGD102,000 from year 2016) and the Ordinary Wage that has been subject to CPF.
With effect from 1 January 2016, the contribution rates have been revised for certain age groups and the contribution rates are as shown in the table below:
|Employee's Age (Years)||Contribution Rate (for monthly wages ≥ $750)|
|Contribution by Employer (% ofwage)||Contribution by Employee (% ofwage)||Total Contribution (% of wage)|
|35 & below||17||20||37|
Note: The above table does not apply to pensionable employees and first or second year Singapore Permanent Residents whose contributions are based on graduated rates.
Are there any gift, wealth, estate, and/or inheritance taxes in Singapore?
Are there real estate taxes in Singapore?
All property owners are liable to pay Property Tax which is a tax on immovable properties (that is, land and buildings). The tax payable is calculated based on a percentage (tax rate) of the annual value. Effective from 2011, property tax for owner-occupied residential properties will be assessed at progressive rates. Revised progressive property tax rates will be phased in over two years starting from 1 January 2014. For a non-owner occupied residential property, the revised property tax rates on a graduated scale will start at 10% per annum and end at the top rate of 19% and 20% with effect from 1 January 2014 and 1 January 2015 respectively.
Annual Value is the estimated annual rent of your property assuming it is let out.
Are there sales and/or value-added taxes in Singapore?
There is a 7% Goods and Services Tax (GST) on domestic consumption.
The GST is levied on the sale of goods and services in Singapore by GST-registered traders, and on goods imported into Singapore. The export of goods and international services is not subject to GST.
The GST covers almost all goods and services, except for the rental and sale of residential land and buildings in Singapore, the importation and local supply of investment precious metals, and the provision of certain financial services. Businesses whose turnover exceeds SGD1 million are required to register for GST.
Are there unemployment taxes in Singapore?
Are there additional taxes in Singapore that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.
Stamp duty is payable on certain documents relating to properties and shares.
Employers are required to contribute Skills Development Levy (SDL) for each employee at the rate of 0.25% up to the first SGD4,500 of gross monthly remuneration of the employee. The SDL is set at a minimum of SGD2 and capped at SGD11.25 for an employee per month.
A non-resident is liable to pay income tax on Singapore-sourced income. Under the law, a person has a legal obligation to withhold a percentage of the payment, when he/she makes payments of a specified nature under the Singapore Income Tax Act, to a non-resident.
The following is a list of payment subjected to withholding tax:
This list is meant for illustrative purposes only and is by no means exhaustive.
Financial institutions in Singapore are required to report accounts of tax residents from countries/jurisdictions that have signed a Competent Authority Agreement (“CAA”) with Singapore to the IRAS, and such information will be exchanged with other tax authorities in accordance with the terms of the CAAs. The information reported will be details of accounts and products the individual has with the financial institution.
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