Singapore Income Tax: Employment Income
Employment income encompasses all taxable income which is derived from your work as an employee. Certain income types are exempt from income tax, these are defined in the Income Tax Act or covered by administrative concession(s).
When using the Singapore Tax Calculator, you should enter your main income from employment, this could be your annual salary or monthly, weekly pay. You can choose the income period for your employment income by selecting the advanced tax calculator. On selecting the advanced tax calculator, the various options will be displayed so you can change the working hours and holiday allowance etc. to refine your income tax calculation.
Employment Income which is taxable:
- Your employment income as specified above.
- Benefits in kind which are provided by your employer instead of cash payments (memberships etc.)
- Employment allowances including meals, transport, accommodation etc.
- Employer contributions to a pension and/or provident fund outside of Singapore. Taxation applies regardless of whether you were employed or not when the transaction occurs.
Employment Income which is not taxable (tax exempt):
- Compensation for loss of office.
- Payments for restrictive covenants.
- Benefits in kind with defined exemption
Calculating your income tax.
Income tax calculations can seem complex but for most employees income tax is fairly straight forward, particulalry if your employer uses AIS.
If you are an employee and your employer participates in the AIS (Auto-Inclusion Scheme) you will have very little to worry about in income tax terms. Your taxable income will be automatically calculated and tax deductions applied. You may need to adust this and report additional income if you have income from other sources other than your employer. You can also use the " title="Singapore Tax Calculator for 2019 Tax Year">Singapore Tax Calculator to understand how your salary and take home pay will look when taking a new job.
If you are an employee and your employer doesn't participate in the AIS (Auto-Inclusion Scheme) you will have to declare your income in your income tax return. You can use the Singapore Tax Calculator to calculate your employment income and income tax return. You can then print or email the calculation to yourself to make completing your income tax return simple and hassle free..
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