Singapore will be raising the personal income tax rate for the city-state’s richest, along with additional levies on high-end properties and luxury cars.
The new taxes are part of the major changes in Singapore’s tax regime, aimed at raising revenue for new social aid measures in the government’s 2022 budget, according to Finance Minister Lawrence Wong’s budget speech on Friday.
Wong outlined a range of government cash transfers, including one-off cash grants to firms still struggling from the pandemic’s impacts and unemployment support.
Singaporeans with chargeable income of more than S$500,000 and up to S$1 million will be taxed at 23 percent. Anything excess of S$1 million will be charged 24 percent.
Initially, Singapore taxed 22 percent of any income more than S$320,000. The increase is expected to affect the top 1.2 percent of taxpayers, Wong said.
Tax rates for non-owner occupied residential properties, currently 10 to 20 percent, will be gradually raised up to 12 to 36 percent by 2024. Owner-occupied residential properties with annual values of more than S$30,000 will be taxed by as much as 6 to 32 percent in 2024.
New registration fees for cars with a market value of S$80,000 will be introduced at 220 percent.
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