Minsiter of Finance Lawrence Wong delivered his Budget 2022 statement earlier and announced a few changed to the tax system of Singapore.
With effect from the year of assessment 2024, persons who earn between $500,000 to $1 million will need to pay an income tax rate of 23% for the portion of chargeable income in excess of $500,000.
For persons who earn more than $1 million, they will have to pay an income tax of 24% for the portion of chargeable income in excess of $1 million.
At the moment, persons who earn more than $320,000 have to pay a personal income tax of 22%.
The updated increase in income tax is set to affect the top 1.2% of personal income tax payers, and is set to raise extra tax revenue of about $170 million each year.
Wong said:
“The portion of chargeable income in excess of S$500,000 up to S$1 million dollars will be taxed at 23 per cent, while that in excess of S$1 million will be taxed at 24 per cent, both up from 22 per cent today.”