Effective Tax on Income in Singapore (Personal), India, Indonesia & Malaysia

Tax on income varies depending on respective income or profits. It can also varies depending on the type of characteristic of the taxpayer, as well as tax laws of a country. The following is a comparison of the effective tax on income in Singapore, India, Indonesia and Malaysia with the relevant options and benefits.

Singapore

The tax year in Singapore runs from 1st January to 31st December, and income is assessed on a preceding year basis. The tax system adopts progressive personal tax rates that are relative to the amount of income as follows:

Taxable Income ($)

Rate

Gross Tax Payable ($)

First 20,000

Next 10,000

0

2

0

200

First 30,000

Next 10,000

3.5

200

350

First 40,000

Next 40,00

7

550

2,800

First 80,000

Next 40,000

11.5

3,350

4,600

First 120,00

Next 40,00

15

7,950

6,000

First 160,000

Next 40,000

18

13,950

7,200

First 200,000

Next 40,000

19

21,250

7,600

First 240,000

Next 40,000

20

28,750

7,800

First 280,000

Next 40,000

36,550

8,000

First 320,000

Excess of 320,000

22

44,550

For citizens with overseas employment for more than six months in a calendar year, they can choose to be treated as non-residents for the year of assessment. Foreign income in Singapore is tax exempt under certain conditions.

 

Resident Individuals

Non-resident Individuals

Tax is progressive

Taxed at 15% or respective progressive residential rate up to 22%

Employment income is taxable

Local employment income of less than 60 days is tax exempt

Subject to double tax reliefs

No double tax reliefs

Subject to tax rebates

No tax rebates available

Reliefs available for children, dependents, etc.

No reliefs available

India

Tax on Income in Indian comprises of the taxes that a Hindu Undivided Family (HUF) or an Individual or a taxpayer other than Companies are required to pay on income received. The rate of paying the tax is prescribed under the law. Every individual, whether resident or non-resident of India is subject to income tax. Taxable income is divided into five categories: 1. Income from salary, 2. Income (Interest or Dividends) from other sources like fixed deposits, income from shares, 3. Income from House property, 4. Income from Capital gains and 5. Income from business and profession.

Income for individuals in India is groups into blocks known as tax slabs or brackets (for the Assessment Year 2019-2020) :

Income Range

Rate of Tax

Tax to be paid

0 – Rs. 2,50,000

0Not taxable

Rs 2.5 lakhs – Rs 5 lakhs

5%

5% of the taxable income

Rs 5 lakhs – Rs 10 lakhs

20%

Rs 12,5000 + 20% of the income above Rs 5 lakhs

Above 10 lakhs30%

Rs 1,12,500 + 30% of income above Rs 10 lakhs

Indonesia

In Inodnesia, non-resident individuals, they are subject to a 20% withholding tax on income earned locally. For residents, almost all income is subject to tax on progressive rates. It includes employment income, passive income, income from business or independent profession, rents, and capital gains. An individual in Indonesia is regarded a tax resident if they live in Indonesia, has been in Indonesia during a fiscal year and intends to reside in country, or has been in Indonesia for 183 days or more during a period of past 12 months. The tax is collected through withholding by employers. The progressive tax rates for residents is as follows:

Individual Income Tax

Tax Rate

0 – IDR 50 million

5%

IDR 50 million – IDR 250 million

15%

IDR 250 million – IDR 500 million

25%

Above IDR 500 million

30%

Malaysia

Taxation in Malaysia is territorial whereby residents and non-resident are taxed for their income sourced local while foreign-sourced income is not taxed. For income sourced in Malaysia, non-resident individuals are taxed at a flat rate of 28% on table income. For resident individual, a progressive tax rate is applicable as follows:

Income Range (MYR)Tax on Column 1 (MYR)Tax on excess

5,000 – 20,000

01%
20,000 – 35,000150

3%

35,000 – 50,000

6008%

50,000 – 70,000

1,800

14%

70,000 – 100,000

4,600

21%

100,000 – 250,00010,900

24%

250,000 – 400,000

46,900

24.5%

400,000 – 600,000

83,650

25%

600,000 – 1,000,000

133,650

26%

Over 1,000,000

237,650

28%

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