Singapore to Hike Income Taxes
February 24, 2015 Taxation in Singapore
SINGAPORE – Low- and middle-income earners in Singapore will benefit from an immediate tax rebate, and will enjoy access to more healthcare and transport, funded by taxes hikes paid by the country’s richest taxpayers.
On February 23rd the government of Singapore announced that in 2017 the rates of personal income tax face by high-income earners will rise, and the extra tax revenues will be used to fund extra welfare and healthcare for low-income earners and retirees.
Currently the marginal rate of tax on incomes between SGD 16 000 and SGD 200 000 is 17 percent, rising to 18 percent on incomes up to SGD 320 000, and 20 percent on all incomes exceeding SGD 320 000.
From 2017 onwards the rates will be 18 percent for incomes between SGD 160 000 to SGD 200 000, and 19 percent on the next SGD 40 000, and an additional 19.5 percent on the following SHD 40 000, followed by a rate of 20 percent on incomes falling between SGD 280 000, and top marginal rate of 22 percent on all incomes above SGD 320 000.
The money will be to fund new projects for the development of Singapore’s public transport infrastructure, and to the expansion of the country’s healthcare system, to alleviate the burdens placed on low-income earners and retirees by the country’s rapidly rising living costs.
In addition, in order to provide to short-term relief to middle- and low-income earners an immediate but once-off 50 percent rebate on personal income taxes, capped at a limit of SGD 1 000.
Photo By: Joan Campderrós-i-Canas