Income Tax Act 1947 - Singapore Statutes Online (2024)

PART 1

PRELIMINARY

Short title

1.This Act is the Income Tax Act 1947.

Interpretation

2.—(1)In this Act, unless the subject or context otherwise requires—

“account with the electronic service”, in relation to any person, means a computer account within the electronic service which is assigned by the Comptroller to that person for the storage and retrieval of electronic records relating to that person;

“accountant” means a public accountant within the meaning of the Accountants Act2004;

“advocate and solicitor” means an advocate and solicitor within the meaning of the Legal Profession Act1966;

“annual value” has the meaning given by section2 of the Property Tax Act1960, and is to be ascertained in the same manner as annual value is ascertained under that Act;

“approved pension or provident fund or society” means a pension or provident fund or society approved by the Comptroller under section5;

[Deleted by Act 33 of 2022 wef 26/04/2024]

“basis period” for any year of assessment means the period on the profits of which tax for that year falls to be assessed;

“body of persons” means any body politic, corporate or collegiate, any corporation sole and any fraternity, fellowship or society of persons whether corporate or unincorporate but does not include a company or a partnership;

“Commonwealth”, in relation to a country, means any country recognised by the President to be a Commonwealth country and “part of the Commonwealth” means any Commonwealth country, colony, protectorate or protected state or any other territory administered by the government of any Commonwealth country;

“company” means any company incorporated or registered under any law in force in Singapore or elsewhere;

“Comptroller” means the Comptroller of Income Tax appointed under section3(1) and includes, for all purposes of this Act except the exercise of the powers conferred upon the Comptroller by sections34F(9), 37L(7), 37M(5), 37S(8), 67(1)(a), 95, 96, 96A and 101, a Deputy Comptroller or an Assistant Comptroller so appointed;

[Act 30 of 2023 wef 30/10/2023]

“country” includes a territory;

“crops” includes any form of vegetable produce;

“earned income” means the statutory income of an individual reduced by any deduction made under section37(3)(a) or 37D or claimed under section37C (excluding any donation referred to in section37C(8)(c)) or 37E from—
(a)gains or profits from any trade, business, profession, vocation or employment on which tax is payable under section10(1), where the Comptroller is satisfied that such gains or profits are immediately derived from the carrying on or exercise by such individual of such trade, business, profession, vocation or employment; and
(b)any pension on which tax is payable under section10(1)(e) given to the individual in respect of the past services of such individual or any deceased individual;

“electronic record” has the meaning given by the Electronic Transactions Act2010;

“electronic service” means the system established under section 29 of the Inland Revenue Authority of Singapore Act 1992;

[Act 33 of 2022 wef 26/04/2024]

“employee” —
(a)in relation to a company, includes a director of the company; and
(b)in relation to a statutory board, includes the chairperson and any member of the statutory board,

and “employer” and other cognate expressions are to be construed accordingly;

“executor” means any executor, administrator or other person administering the estate of a deceased person;

“Fund Manager” or “fund manager” means a company holding a capital markets services licence under the Securities and Futures Act2001 for fund management or that is exempted under that Act from holding such a licence;

“goods” includes currency and specie;

“harvesting” includes the collection of crops, however effected;

“Hindu joint family” means what in any system of law prevailing in India is known as a Hindu joint family or a co‑parcenary;

“holding company” has the meaning given by section 5 of the Companies Act 1967;

[Act 33 of 2022 wef 04/11/2022]

“incapacitated person” means an individual—
(a)who is below 21years of age; or
(b)who lacks capacity to make a decision for himself or herself in relation to any matter at the material time because of an impairment of, or a disturbance in the functioning of, the mind or brain, whether such impairment or disturbance is permanent or temporary;
“information subject to legal privilege” means—
(a)communications between an advocate and solicitor and his or her client or any person representing his or her client made in connection with the giving of legal advice to the client; and
(b)communications between—
(i)an advocate and solicitor and his or her client or any person representing his or her client; or
(ii)an advocate and solicitor or his or her client or any such representative and any other person,

made in connection with, or in contemplation of, judicial proceedings and for the purposes of such proceedings,

when such communications are in the possession of a person who is entitled to possession of them, but excluding, in any case, any communications made with the intention of furthering a criminal purpose;

“institution of a public character” has the meaning given by the Charities Act1994;

“issued shares” excludes treasury shares;

“life annuity” means an annuity payable under a policy issued to an SRS member for a term ending with, or at a time ascertainable only by reference to, the end of his or her life;

“limited liability partnership” means any limited liability partnership incorporated or registered under any law in force in Singapore or elsewhere;

“limited partnership” means a limited partnership registered or formed under any law in force in Singapore or elsewhere;

“offshore mineral” means mineral from the seabed or that is dissolved in sea water;

“offshore renewable energy” means—
(a)ocean thermal power;
(b)offshore geothermal power;
(c)offshore solar power;
(d)offshore wind power;
(e)osmotic power;
(f)tidal power; or
(g)wave power;
“permanent establishment” means a fixed place where a business is wholly or partly carried on including—
(a)a place of management;
(b)a branch;
(c)an office;
(d)a factory;
(e)a warehouse;
(f)a workshop;
(g)a farm or plantation;
(h)a mine, oil well, quarry or other place of extraction of natural resources;
(i)a building or work site or a construction, installation or assembly project,

and without limiting the foregoing, a person is deemed to have a permanent establishment in Singapore if that person—

(j)carries on supervisory activities in connection with a building or work site or a construction, installation or assembly project; or
(k)has another person acting on that person’s behalf in Singapore who—
(i)has and habitually exercises an authority to conclude contracts;
(ii)maintains a stock of goods or merchandise for the purpose of delivery on behalf of that person; or
(iii)habitually secures orders wholly or almost wholly for that person or for such other enterprises as are controlled by that person;

“person” includes a company, body of persons and a Hindu joint family;

“plantation” means any land used for the growing and harvesting of crops;

“prescribed” means prescribed by rules or regulations made under this Act;

“prescribed minimum retirement age” has the meaning given by the Retirement and Re‑employment Act1993;

“private hire car” means a motor car—
(a)that is used as a private hire car within the meaning of the Road Traffic Act1961; and
(b)in respect of which a licence is issued under Part5 of that Act for such use;

“professional visit pass” means a professional visit pass issued by the Controller of Immigration under the Immigration Regulations;

“related party”, in relation to a person (A), means any person—
(a)who directly or indirectly controls A;
(b)who is being controlled directly or indirectly by A; or
(c)who, together with A, is directly or indirectly under the control of a common person;

[Act 33 of 2022 wef 04/11/2022]

“replanting” means the replacement of the crop of any product on any area of land by the planting on the same area—
(a)of a crop of the same product; or
(b)of a crop of a different product approved by the Minister;
“research and development” means any systematic, investigative and experimental study that involves novelty or technical risk carried out in the field of science or technology with the object of acquiring new knowledge or using the results of the study for the production or improvement of materials, devices, products, produce, or processes, but does not include—
(a)quality control or routine testing of materials, devices or products;
(b)research in the social sciences or the humanities;
(c)routine data collection;
(d)efficiency surveys or management studies;
(e)market research or sales promotion;
(f)routine modifications or changes to materials, devices, products, processes or production methods; or
(g)cosmetic modifications or stylistic changes to materials, devices, products, processes or production methods;

“research and development organisation” means a body or an organisation which provides research and development services for any trade or business;

“resident in Singapore” —
(a)in relation to an individual, means a person who, in the year preceding the year of assessment, resides in Singapore except for such temporary absences therefrom as may be reasonable and not inconsistent with a claim by such person to be resident in Singapore, and includes a person who is physically present or who exercises an employment (other than as a director of a company) in Singapore for 183days or more during the year preceding the year of assessment; and
(b)in relation to a company or body of persons, means a company or body of persons the control and management of whose business is exercised in Singapore;

“specially authorised officer” means an officer authorised under section4(5) to exercise the powers mentioned in that provision;

“SRS account” means an account opened with an SRS operator by an SRS member;

“SRS contribution cap”, in relation to an SRS member, means the maximum contribution prescribed under section10G that may be made by the member to his or her SRS account in any year under the SRS;

“SRS member” means a member of the Supplementary Retirement Scheme;

“SRS operator” means any company approved by the Minister, or such person as the Minister may appoint, for the purposes of the Supplementary Retirement Scheme;

“subsidiary” has the meaning given by section 5 of the Companies Act 1967;

[Act 33 of 2022 wef 04/11/2022]

“Supplementary Retirement Scheme” or “SRS” means the Supplementary Retirement Scheme established by regulations made under section10G;

“tax” means the income tax imposed by this Act;

“treasury share” —
(a)in relation to a company incorporated under the Companies Act1967 or any corresponding previous written law, means a treasury share as defined in section4(1) of that Act; and
(b)in relation to a company incorporated under the law of a country other than Singapore, means a share issued by the company which is subsequently acquired and held by it;

“VCC Act” means the Variable Capital Companies Act2018;

“work pass” means a work pass issued by the Controller of Work Passes under the Employment of Foreign Manpower Act1990;

“year of assessment” means the period of 12months commencing on 1 January 1948, and each subsequent period of 12months.

[2/2016; 34/2016; 39/2017; 45/2018; 28/2019; 32/2019; 41/2020]

(1A)The terms “non‑umbrella VCC”, “share”, in relation to a VCC, “sub‑fund”, “umbrella VCC”, and “VCC” have the meanings given to them in the VCC Act.

[28/2019]

(2)For the purposes of this Act, where an individual is present in Singapore for any part of a day, his or her presence on that day is counted as one day.

(3)In this Act, a ship (as defined in section2(1) of the Merchant Shipping Act1995) is used for offshore oil or gas activity if it is used for the exploration or exploitation of offshore oil or gas, or to support any activity that is ancillary to such exploration or exploitation.

[2/2016]

(3A)In this Act, a ship (as defined in section2(1) of the Merchant Shipping Act1995) is used for offshore renewable energy activity or offshore mineral activity if it is used for the exploration or exploitation of offshore renewable energy or offshore mineral, or to support any activity that is ancillary to such exploration or exploitation.

[34/2016]

(4)In this Act, to avoid doubt, a reference to the spouse of a person means a spouse who is of the opposite sex to that person.

Income Tax Act 1947 - Singapore Statutes Online (2024)

FAQs

What is Singapore tax Act 1947? ›

The Income Tax Act 1947 (ITA) is an Act of the Singaporean Parliament to impose a tax upon incomes and to regulate the collection thereof. It was commenced together with the formation of the Inland Revenue Authority of Singapore. An Act to impose a tax upon incomes and to regulate the collection thereof.

Do foreigners pay income tax in Singapore? ›

You will be taxed on all income earned in Singapore; Your foreign-sourced income (with the exception of those received through partnerships in Singapore) brought into Singapore is tax-exempt; You may claim deductions on expenses, donations and personal reliefs. Find out more about deductions to save tax.

What is Section 45 of the Singapore Income Tax Act? ›

According to Section 45 of the Income Tax Act 1947, these are the list of payments subject to Singapore withholding tax. Some of these are: Rent. Commissions, interests, and any other debt or loan-related fees.

How much salary do I need to pay income tax in Singapore? ›

Filing of personal tax return for tax resident is mandatory if your annual income is S$20,000 or more. Tax residents do not need to pay tax if your annual income is less than S$20,000. However, you may still need to file a tax return if you have been informed by Singapore tax authority to submit your tax return.

What are the tax laws in Singapore? ›

Individual income tax in Singapore is payable on an annual basis, it is currently based on the progressive tax system (for local residents and tax residents), with taxes ranging from 0% to 22% since Year of Assessment 2017.

What is the history of Income Tax Act in Singapore? ›

The Singapore Income Tax Department was created in 1947 to administer the Income Tax Ordinance enacted during that year. Actual assessing of tax only began in November 1948. In the first Year of Assessment, about 40,000 individual tax returns and 1,000 corporate returns were received.

How are US citizens taxed in Singapore? ›

Taxation of Global Income: U.S. citizens, including non-residents, are taxed on their worldwide income. Conversely, Singapore only taxes its residents on worldwide income, but non-residents are taxed only on income sourced within Singapore.

How much is income tax for expats in Singapore? ›

Singapore has three parts to its tax system: a fiscal policy, a tax policy, and government operating revenue. Tax rates for expat individual income max at 22% for residents and 15% for non-residents. Property taxes for expats who own and occupy their property max at 23%.

What is the average salary in Singapore for expats? ›

Overview – Average salary in Singapore

Singapore's average income for a full-time worker is S$5,783 per month & S$ 69,396 annually. The average income in Singapore for a part-time worker is S$1,948 per month & S$23,376 annually.

What is Section 12 7 of the Singapore Income Tax Act? ›

Under Section 12(7)(a) of the SITA, any royalty or other payments in one lump sum or otherwise for the use of or the right to use any movable property is deemed to be sourced in Singapore if it is borne directly or indirectly by a person resident in Singapore, or a permanent establishment in Singapore, or the payment ...

What is the tax exempt income in Singapore? ›

A partial tax exemption is eligible for first SGD 300,000 of chargeable income. Under this condition, 75% of the first SGD 10,000 of chargeable income is tax exempt and 50% of the next SGD 290,000 of chargeable income is tax exempt.

What is Section 10 25 of the Singapore Income Tax Act? ›

Under Section 10(25) of the ITA, income from outside Singapore is considered received in Singapore when it is: Page 2 o Remitted to, transmitted or brought into Singapore; o Used to satisfy any debt incurred in respect of a trade or business carried on in Singapore; or o Used to purchase any movable property (such as ...

How to save tax in Singapore for foreigners? ›

The easiest way to enjoy deductions on your taxable income is to top-off all your retirement accounts. You can get a dollar-for-dollar deduction on your taxable income for all the money you tuck away in your CPF and SRS (Supplementary Retirement Scheme) accounts.

Can I use a credit card to pay income tax in Singapore? ›

IRAS doesn't accept credit card payments. In their own words: Credit card payments are not offered by IRAS directly because of the high transaction costs charged by the credit card service providers.

Do I need to file income tax in Singapore? ›

Generally, income earned in or derived from Singapore is subject to income tax, if it exceeds $22,000, or if your self-employment income had a net profit exceeding $6,000. Income can come from sources such as employment, trade, business, profession and vocation, and from renting out your property.

Why is Singapore considered a tax haven? ›

Sometimes known as a tax haven, there are several favorable policies for people living and doing business in Singapore. The country offers several tax breaks, boasts a relatively low corporate tax rate and top personal tax bracket, and it does not levy taxes on capital gains.

Who needs to pay tax in Singapore? ›

Income is taxable when it accrues in or is derived from Singapore, whether or not the individual is resident in Singapore. Income derived from sources outside Singapore is only taxable if it is received in Singapore by a resident individual through a partnership in Singapore.

What is the Singapore USA double taxation agreement? ›

Singapore and U.S. Tax

Even though the U.S. and Singapore do not have a bilateral tax treaty in place, if a U.S person (Citizen, Legal Permanent Resident or Foreign who meets the Substantial Presence Test) with Singapore assets and/or income may have to report to the IRS. The U.S. follows a worldwide income tax model.

What was the 1943 tax act? ›

The main features of the Current Tax Payment Act of 1943 are a combination of a Treasury plan for withholding and collecting at the source of a portion of income taxes upon wage earners and salaried persons, and the so-called "Ruml Pay-As-You-Go Tax Plan" for tran- sition to complete currency in tax payment, effected ...

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