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Find out how to calculate the income tax for tax residents and non-residents.Sample calculation for tax residents
Example 1: 35-year-old with employment income of $50,000 in 2021
Mr Heng is 35 years old and married. He earned $50,000 in 2021. He has a newborn child in 2021 and is eligible for Parenthood Tax Rebate of $5,000. His chargeable income for the Year of Assessment (YA) 2022 is computed as follows:
$50,000 |
$250 |
$49,750 |
$1,000 |
$4,000 |
$10,000 |
$34,750 |
Mr Heng's tax payable on his chargeable income of $34,750 is calculated as follows:
Tax on first $30,000 | $200.00 |
Tax on next $4,750 @ 3.5% | $166.25 |
Gross Tax Payable | $366.25 ($200 + $166.25) |
Less: Parenthood Tax Rebate | $366.25 |
Net Tax Payable for YA 2022 | $0 |
Mr Heng is entitled to Parenthood Tax Rebate of $5,000 in respect of his first child born in 2021 which is used to offset his income tax payable for YA 2022. The remaining amount ($5,000 - $366.25) will be used to offset his income tax payable in subsequent years until the rebate has been fully utilised.
Example 2: 64-year-old with employment income of $250,000 in 2021
Mr Fong was 64 years old in 2021 and had earned income of $250,000. His chargeable income for YA 2022 is computed as follows:
$250,000 |
$250 |
$249,750 |
$8,000 |
$7,650 |
$234,100 |
Mr Fong's tax payable on his chargeable income of $234,100 is calculated as follows:
Tax on first $200,000 | $21,150 |
Tax on next $34,100 @ 19% | $6,479 |
Net Tax Payable for YA 2022 | $27,629 ($21,150 + $6,479) |
Sample calculation for non-tax residents
Example 3: 26-year-old foreigner who received a salary of $21,000
Mr Gabriel, a Chile national, stayed and worked in Singapore from 1 Aug 2021 to 31 Oct 2021. He received a total salary of $21,000. His chargeable income for YA 2022 is computed as follows:
$21,000 |
$0 |
$21,000 |
N.A. |
$21,000 |
Mr Gabriel's tax payable on his chargeable income of $21,000 is calculated as follows:
Tax Rate for Non-Residents | 15% |
Net Tax Payable for YA 2022 | $3,150 ($21,000 x 15%) |
Example 4: 39-year-old foreigner who received Director's Fees of $85,000
Ms Burch, an American, received Director's fees of $85,000 in 2021. Her chargeable income for YA 2022 is computed as follows:
$85,000 |
$0 |
$85,000 |
N.A. |
$85,000 |
Ms Burch's tax payable on her chargeable income of $85,000 is calculated as follows:
Tax Rate for Non-Residents (Director's Fees) | 22% |
Net Tax Payable for YA 2022 | $18,700 ($85,000 x 22%) |