Managed Payroll Services in Singapore

  • Payroll Processing Singapore

  • Fund Management Singapore

Our Singapore-based payroll outsourcing team is expert in supporting your local needs, from auditing past payroll, through onboarding and parallel runs to computation and reporting of year end.

Our services in Singapore include:

  • Full end to end payroll including adjustments, overtime, expenses etc
  • Range of payslips including both electronic and carbon based
  • Full statutory compliance including reporting and audit management
  • Monthly reports and government returns including CPF, SDF, FWL
  • Claims processing including maternity, childcare, national service
  • Year-end tax support including IR8A/S, Appendices
Ticketing
Dedicated-Helpline
Multiple-Currency
Client-Live-Chat
Multi-Language-Staff

Singapore remains an attractive destination for expatriates and LI are well positioned to support your organization through its expatriate payroll management expertise.

Our services in Singapore include:

  • Multi-currency payroll calculation (SGD, USD, EURO, AUD)
  • International payroll transfers
  • Management of monthly tax withholding for non-resident individuals (S45)
  • Foreign worker clearance (IR21)

Are you looking for someone to apply for your employee work permits? Take a look at our Work Permit Management services.

Social Security Scheme

Employees’ Central Provident Fund (CPF) applies to employees who are Singapore Citizens (SC) or Singapore Permanent Residents (SPR). CPF requires contributions from both the employer and employee, where the employee’s portion has to be deducted from the employee’s salary.


SHG Funds Scheme

Employees are required to contribute monthly to the Self-Help Group (SHG) funds, unless the employee opts out. This amount has to be deducted from the employee’s salary.

Group Fund Type
SCs or SPRs employees in the Chinese community Chinese Development Assistance Council (CDAC) Fund
SCs or SPRs employees in the Chinese community Eurasian Community Fund (ECF)
SCs, SPRs or foreign Muslim employees Mosque Building and Mendaki Fund (MBMF)
Employees of Indian descent * Singapore Indian Development Association (SINDA) Fund

* Excluding those on the Foreign Worker Levy (FWL) scheme


Singapore Tax

The Inland Revenue Authority of Singapore (IRAS) is the main agency for tax collection, among other government agencies.


Corporate Income Tax

Income accrued in or derived from Singapore, and income received in Singapore from outside Singapore, after deductions is taxable income. As of 2017, the standard Coportate Income Tax (CIT) rate is 17%. IRAS offers partial tax exemption for companies.


Partial Tax Exemption

Chargeable Income % exempted from Tax Amount exempted from Tax
First $10,000 75% $7,500
Next $290,000 50% $145,000


There is also a tax exemption scheme for qualifying new start-up companies, applicable for each of the first three consecutive Years of Assessment (YAs). From the fourth YA onwards, partial tax exemption will apply.

Tax Exemption Scheme for New Start-Up Companies

Chargeable Income % exempted from Tax Amount exempted from Tax
First $100,000 100% $100,000
Next $200,000 50% $100,000


In addition, IRAS offers CIT rebates.

CIT Rebate

Year Of Assessment Corporate Income Tax Rebate Capped At
2018 20% $10,000
2017 50% $25,000


Individual Income Tax

Tax resident for a current YA are SCs or SPRs residing in Singapore excluding temporary absences. Foreigners who has stayed / worked in Singapore for 183 days or more in the year before the YA, excluding a company director are also considered tax residents. Resident tax rates are applied progressively. Additionally, resident tax rates will receive 20% individual income tax rebate, capped at $500 for YA 2017.


Resident Tax Rates from YA 2017

Chargeable Income Rate (%) Tax ($)
First $20,000
Next $10,000
0%
2%
$0
$200
First $30,000
Next $10,000
-
3.50 %
$200
$350
First $40,000
Next $40,000
-
7%
$550
$2,800
First $80,000
Next $40,000
-
11.5%
$3,350
$4,600
First $120,000
Next $40,000
-
15%
$7,950
$6,000
First $160,000
Next $40,000
-
18%
$13,950
$7,200
First $200,000
Next $40,000
-
19%
$21,150
$7,600
First $240,000
Next $40,000
-
19.5%
$28,750
$7,800
First $280,000
Next $40,000
-
20%
$36,550
$8,000
First $320,000
In excess of $320,000
-
22%
$44,550
-


Non-residents tax rates for employment income is at a flat rate of 15% or the resident progressive tax rates shown above, whichever results in a higher tax amount. Generally, director's fees and other income taxes are at the 22% rate for YA 2017.


Other Taxes:

  • Goods & Services Tax (GST) is collected by the Singapore Customs, taxed on consumption – including import of goods and services where standard rated supplies are taxed at 7%.
  • Customs & Excise Duties is collected by the Singapore Customs mainly on liquor, motor vehicles, petroleum, and tobacco products.
  • Export duties are not levied on goods exported from Singapore.
  • To regulate the employment of foreign workers in Singapore, a monthly Foreign Worker Levy is imposed for each Work Permit holder employed.
  • Stamp Duty is a tax on dutiable commercial and legal documents relating to stocks, shares and immovable property.
  • Property Tax Rates are progressive on owner-occupied and non-owner occupied residential properties. Non-residential properties such as commercial, industrial buildings and land are taxed at 10% of the annual value.
  • Motor Vehicle Taxes are taxes excluding import duties on motor vehicles to curb car ownership and road congestion.
  • Casino Tax is levied on the casinos’ gross gaming revenue while Betting Taxes are duties on private lottery, betting and sweepstake.
Managed Payroll Services