It isn’t just the GST that will be going up. Financial Minister Lawrence Wong announced in his Budget speech today (February 18) that there will be changes to other taxes as well.
The top marginal personal income tax rate will be increased, with effect from the year of assessment 2024, which is for income earned from 1 January 2023 to 31 December 2023.
Resident taxpayers’ chargeable income in excess of S$500,000 up to S$1 million will be taxed at 23 per cent, while income in excess of S$1 million will be taxed at 24 per cent.
This is up from the current 22 per cent tax levied on income in excess of S$320,000.
This increase in the top marginal personal income tax is expected to affect the top 1.2 per cent of personal income taxpayers and will raise S$170 million of additional tax revenue per year.
Singapore last raised its personal income tax rate for the top income tax bracket by 2 percentage points from 20 to 22 per cent, which took effect for the year of assessment 2017.
Featured Image Credit: Outlook India
