Employer Tax Contributions

| Tax Type | Rate | Foreign Worker Levy (FWL) | Varies by sector and by worker's skill level. The levy varies from S$300 to S$950 per month, depending on the worker's skill level and sector. | All foreign employees on Work Permits or S Passes. | | Central Provident Fund (CPF) | Varies by employee age. E.g., Below 55: Employer 17%, Employee 20% (Total 37%). | Singapore Citizens and Permanent Residents (SPRs). Monthly wages up to S$7,400. Annually, up to S$102,000. | | Skills Development Levy (SDL) | 0.25% of monthly remuneration. Minimum S$2, maximum S$11.25. | All local and foreign employees rendering services in Singapore. |

Filing & Compliance

• CPF/SDL: Pay contributions by the 14th of the following month.
• Form IR8A: Submit employment income information by 1 March annually.
• Auto-Inclusion Scheme (AIS): Mandatory for employers with 5 or more employees, or if notified by IRAS. Submit electronically.

In Singapore, employee tax deductions, known as "tax deduction at source," are withheld from salaries by employers and remitted to the Inland Revenue Authority of Singapore (IRAS). Employers are responsible for accurate deductions and timely filing.

Tax Residency

• Tax Resident: An individual is considered a tax resident if they reside in Singapore for 183 days or more in a calendar year. Tax residents benefit from progressive tax rates and various tax reliefs.
• Non-Tax Resident: Individuals who reside in Singapore for less than 183 days are considered non-tax residents. They are generally taxed at a flat rate of 24% on income sourced in Singapore, except for employment income, which is taxed at the higher of 15% or the resident rates.

Tax Rates (Year of Assessment 2025, Income Year 2024)

As of February 5, 2025, the latest available tax rates are for Year of Assessment 2024 (income earned in 2023). The rates for Year of Assessment 2025 (income earned in 2024) have not been released yet.

• Residents: Progressive tax rates ranging from 0% to 22%. For example, the first S$20,000 is tax-free, the next S$10,000 at 2%, and so on.
• Non-Residents: Employment income is taxed at the higher of 15% or the resident rates. Other income is taxed at 24%.

Deductions and Reliefs (Year of Assessment 2024)

• CPF Relief for Employees: Contributions made to the Central Provident Fund (CPF) are tax-deductible.
• Spouse Relief: S$2,000 if the spouse's annual income does not exceed S$4,000.
• Handicapped Spouse Relief: S$5,500.
• Qualifying Child Relief: S$4,000 for each qualifying child.
• Working Mother's Child Relief: A percentage of earned income, depending on the number of children.
• Grandparent Caregiver Relief: S$3,000 if caring for a grandchild.
• Parent/Grandparent Relief: Various amounts depending on the parents'/grandparents' income and living arrangements.
• Foreign Maid Levy Relief: Relief for foreign maid levy paid.
• Course Fees Relief: Relief for approved courses related to employment.
• Charitable Donations: Donations to approved institutions are eligible for 250% tax deduction.

Employer Responsibilities

• Withholding Tax: Employers must deduct the correct amount of tax from employees' salaries each month.
• Filing Tax Returns: Employers must file Form IR8A for each employee by March 1st annually, summarizing the employee's income for the previous year.
• Remitting Tax: Tax withheld from employees must be remitted to IRAS monthly.

Deadlines

• Form IR8A Filing: March 1st annually.
• Individual Income Tax Filing: April 15th annually (April 18th for electronic filing).

It's important to note that tax laws and regulations can change. Consulting IRAS or a tax professional for the most current information is recommended.