Straight answers to the questions we hear most about Singapore income tax.
Is CPF mandatory for everyone working in Singapore?+
No. CPF contributions are mandatory only for Singapore Citizens and Permanent Residents. Foreigners on an Employment Pass, S Pass, or Work Permit do not contribute to CPF. See our
CPF explainer.
What is the Auto-Inclusion Scheme?+
Under AIS, participating employers submit employee income information directly to IRAS. If all your income is covered this way and you have nothing else to declare, you may not need to actively file a return.
Are foreigners taxed the same as citizens in Singapore?+
If you qualify as a tax resident (broadly, 183 days or more in Singapore in the year), you're taxed at the same progressive resident rates as citizens. Non-residents are taxed at a flat 15% on employment income or resident rates, whichever gives a higher tax amount.
Is my CPF contribution tax deductible?+
Yes, your own CPF contributions qualify for CPF Relief, reducing your chargeable income for the Year of Assessment.
Are dividends taxed in Singapore?+
Generally no. Under Singapore's one-tier corporate tax system, dividends from Singapore resident companies are tax-exempt in the shareholder's hands, since the company has already paid tax on its profits.
What happens if I leave Singapore permanently for work?+
Foreigners leaving Singapore for good (or for more than three months) generally need tax clearance — your employer must notify IRAS and withhold your final salary until clearance is obtained.
Is overseas income taxed if remitted to Singapore?+
Foreign-sourced income received in Singapore by individuals is generally tax-exempt, provided it wasn't derived through a partnership carrying on a trade or business in Singapore. Verify your specific situation with IRAS.