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Singapore - Other taxes and levies

Other taxes and levies

Taxation of international executives

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Social security tax

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 Singapore permanent residents (“SPRs”) 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.

The current wage cap for the Ordinary Wage is SGD6,000 per month while the Annual Wage Ceiling is SGD102,000.

Additional Wage is limited to the difference between the prevailing Annual Wage Ceiling (SGD102,000) and the Ordinary Wage that has been subject to CPF.

The contribution rates for different age groups and SPR status are as shown in the table below:

CPF Rates 1st Year SPR 2nd Year SPR 3rd Year SPR + citizens

(A)

55 Years and below

Employee 5.0% 15.0% 20.0%
  Employer 4.0% 9.0% 17.0%
  Total 9.0% 24.0% 37.0%

(B)

Above 55 to 60 years

Employee 5.0% 12.5% 13.0%
  Employer 4.0% 6.0% 13.0%
  Total 9.0% 18.5% 26.0%

(C)

Above 60 to 65 years

Employee 5.0% 7.5% 7.5%
  Employer 3.5% 3.5% 9.0%
  Total 8.5% 11.0% 16.5%

(D)

Above 65

Employee 5.0% 5.0% 5.0%
  Employer 3.5% 3.5% 7.5%
  Total 8.5% 8.5% 12.5%

Under the law, it is the obligation of the employer to remit any mandatory CPF contributions to the CPF Board.

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in Singapore?

Estate duty

No.

Real estate tax

Are there real estate taxes in Singapore?

Property tax

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.

Annual Value is the estimated annual rent of your property assuming it is let out.

Sales/VAT tax

Are there sales and/or value-added taxes in Singapore? 

Goods and services tax (GST)

There is a 7 percent Goods and Services Tax (GST) on domestic consumption.

Unemployment tax

Are there unemployment taxes in Singapore?

No.

Other taxes

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 percent 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.

Withholding tax

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 they 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:

  • interest
  • royalties
  • management fees and service fees
  • non-resident director’s remuneration
  • professional service fees for non-resident professionals.

This list is meant for illustrative purposes only and is by no means exhaustive.

Foreign Financial Assets

Is there a requirement to declare/report offshore assets (e.g. foreign financial accounts, securities) to the country/territory’s fiscal or banking authorities?

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.

© 2020 KPMG Services Pte Ltd (Registration No. 200003956G), a Singapore incorporated company and a member firm of the KPMG network of independent member firms affiliated with KPMG International cooperative, KPMG International. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity.  Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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