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Banking and Tax

It’s sometimes the case that the bank you use in your home country have an established presence in Singapore, which could make opening an account abroad and managing overseas transfers much easier.   It’s important to consider the services offered, location and the ATM network available (unlike in other countries, you can only the withdraw money for your bank’s ATMs).   Furthermore, banks also charge different service fees and require different minimum account balances.

OPENING A BANK ACCOUNT IN SINGAPORE

It’s incredibly easy to open a bank account in Singapore, and the process can be completed in a single day. Accounts can be established at local bank branches, so there is no need to travel to a central branch. English is the primary administrative and professional language in Singapore, so you are unlikely to face a language barrier when it comes to managing money.

Expats will likely need a copy of their passport, employment pass and a minimum deposit amount to open an account.

Once the account is open, the holder is given an ATM card, a passbook and, in some cases, a security ring that facilitates safe Internet banking. The passbook works in accordance with ATMs, and is a method for recording transactions and account updates. The security ring delivers secure login codes for accessing Internet banking, which most institutions provide for free.

TAX

 Tax implications at a glance

Length of stay

Resident status

Tax implications

60 days or less Non-resident Short term income is exempt from tax
61 – 182 days in a year Non-resident Income earned in Singapore will be taxed at 15% or progressive resident rates. Other income earned will be taxed at 20%.
At least 183 days in a year Resident for that year All income taxed at progressive resident rates, tax relief may be claimed.
At least 183 days, continuous over two years or three consecutive years Resident for both years All income taxed at progressive resident rates, tax relief may be claimed.

Tax rates for resident individuals

 

From YA 2012 to YA 2016

Chargeable income – SGD

Rate – %

Gross tax payable – SGD

First $20,000 0 0
Next $10,000 2 200
First $30,000 200
Next $10,000 3.5 350
First $40,000 550
Next $40,000 7. 2,800
First $80,000 3,350
Next $40,000 11.5 4,600
First $120,000 7,950
Next $40,000 15 6,000
First $160,000 13,950
Above $40,000 17 $6,800
First $200,00 $20,750
Next $120,000 18 $21,600
First $320,000 $42,350
Above $320,000 20

From YA 2017 onwards

Chargeable income – SGD

Rate – %

Gross tax payable – SGD

First $20,000 0 0
Next $10,000 2 200
First $30,000 200
Next $10,000 3.5 350
First $40,000 550
Next $40,000 7 2,800
First $80,000 3,350
Next $40,000 11.5 4,600
First $120,000 7,950
Next $40,000 15 6,000
First $160,000 13,950
Next $40,000 18 7,200
First $200,000 21,150
Next $40,000 19 7,600
First $240,000 28,750
Above $40,000 19.5 7,800
First $280,000 36,550
Next $40,000 20 8,000
First $320,000 44,550
Above $320,000 22

For more information please visit the Inland Revenue Authority of Singapore website:

http://www.iras.gov.sg/irashome/default.aspx

You may also find the tax calculator provided useful:

http://www.iras.gov.sg/irashome/taxcalculators.aspx

Key Areas:

Tax in Singapore

Moving to Singapore?

Working in Singapore

IT Jobs in Singapore

Download our guide hereSingapore Guide