Opening a Bank Account & Managing Your Taxes in Singapore

Jump right in:

• How to open a bank account in Singapore?
• Top banks in Singapore
• What is the tax system like in Singapore?
• What is the income tax rate in Singapore?

Can I open a bank account in Singapore as a foreigner?

If you  are over the age of 18 and  employed in  the country  with  all the  relevant  legal paperwork, opening a bank account should be straightforward. It is much easier if you have a valid Singapore pass, such as an: -  Employment Pass

• S Pass
• Student Pass
• Dependant’s Pass
• Long-Term Visit Pass
• or in-principle approval letter

If you are settling in Singapore for only a few months each year, you should still be able to open a bank account. In this case, the bank’s website will have relevant advice about the specific documents you need.

Required documents to open a bank account as an expat

Taking all the right documents with you to the bank will save you time and effort.  For all banks, make sure you have:

• Passport or National ID Card;
• proof of residence  dated within three months  (this  can include phone bills and utility bills);
• valid  employment pass  or In Principle Approved (IPA) from the Ministry of Manpower;
• your tax or National Insurance numbers.

You may also be required to supply:

• valid rental agreement and government issued proof of address;
• formal letter  from your employer  and proof of employment (such as a contract or pay slip),
• bank statements from your home country;
• reference or introduction letter from your home bank;
• reference or introduction letter from a current customer at the bank you are applying to.

The requirements vary across different banks  and can include extra criteria. Make sure you check ahead of time that no extra documents  or  conditions  are needed.

Process of opening a bank account

• Once you have all the required documents and decided on  a bank,  you  can book an appointment to open your account at a branch or apply online
• After you submit your application, you will have to wait for approval (it can be instant in specific cases)
• When you get approved, you will be asked to make the initial deposit, which varies by bank
• Last step involves activating your account by setting mobile or internet banking, activating your debit card (once you receive it) etc.

Best practical route for expats:

• Get your IPA/pass
• Get Singapore address proof
• Apply with DBS/POSB or OCBC
• Visit a branch if online opening does not work

If you want to open a joint account, note that both account holders need to be present to open the account. Each person can visit the bank separately.

•  DBS allows you to apply for an account online, though you may still be requested to visit the branch in-person.  Applications to open an account with online banking can take up to two weeks to process.

Bank fees and minimum deposit

When banking in Singapore, it is good to be aware of the “minimums” involved.

• Minimum deposit: the lowest amount needed to open your bank account. In Singapore, this can range from 0 to 3,000 SGD (2,350 USD).
• Minimum daily average balance  (MDAB): the lowest average amount you should have in your bank account each day. This can vary between 500 SGD to 3,000  SGD (370 USD to 2,165  USD). If you are unable to reach the minimum deposit, you will not be able to open a bank account. When your account falls below the  MDAB, you will be subject to  a “fall below”  fee.

Remittance fees

Remittance fees might also affect expats in Singapore. Make sure that you are aware of the costs involved before you transfer money back home or between currencies directly from your bank account.

The five most widely recommended banks for foreigners are listed below.

• DBS/POSB: offer accounts specifically for foreign workers.
• UOB: a local bank with many ATMs and a range of account options open to expats.
• Citibank: ATMs are often found close to the Metro, and loans are available to foreigners.
• HSBC: has an  expat bank account for existing customers with  50,000 GBP (65000 USD) in HSBC deposits or investments,  with free remittance to 230 countries.
• Standard Chartered: worthwhile for people who already bank with  Standard Chartered, but with fewer ATMs available (though part of the ATM5 scheme).

International banks

ATMs with the ATM5 logo offer free withdrawals from banks, including:

• ANZ,
• Citibank,
• HSBC,
• Standard Chartered. 

Other international banks in Singapore include:

• BNP Paribas
• Bank of China.

If you are already a client of one of these banks, you might be able to open a Singapore bank account before you move. You will need to contact your bank individually to see if this is possible.

No fee bank accounts in Singapore

• Standard Chartered  SuperSalary  Account
• CIMB  FastSaver  Account: 1,000 SGD (780 USD) minimum deposit, 0 SGD MDAB (but no interest paid on balances below 1,000 SGD), 0 SGD fall below fee.
• DBS Expat  Programme: 0 SGD remittance fees  and same day transfer of money  to countries including Australia, USA, UK, Eurozone countries, and Mainland China.

Best savings acccounts in Singapore

Singapore has a wide range of savings options open to non-residents.

Good options for expats include:

• DBS Multiplier Account: A multi-currency account that offers up to 12 foreign currencies, expats can earn up to 3.8% interest per annum with no minimum salary requirements.
• United Overseas Bank (UOB) One Account: if you credit a minimum of 2,000 SGD (1,400 USD) in salary a month and spend at least 500 SGD (350 USD) you can earn up to 3.88% interest per annum. Expat bank accounts from international providers like HSBC, Standard Chartered, and Citibank are also available.

Online banking in Singapore

If you are looking for a traditional online banking account, most of the banks above have the best online banking options available to expats in Singapore.

Revolut  is an online-only bank that operates in Singapore. You can hold up to 14 currencies at once, including Singapore Dollars.

Other options include:

• Maribank
• GXS
• OCBC

If you use an  online-only bank in your home country, you can check to see  the costs involved with international transfers and ATM withdrawals  in Singapore.

Whilst this often is not the best long-term solution,  as  such banks often do  not offer a Singapore Dollar  option,  this might see you through the first few  months  of settling into the country.

• It is important to remember is that the Singapore tax year runs from January 1st  until December 31st. This is called a particular year of assessment, or YA.
• Benefits for foreigners include low income tax rates and zero capital gains tax. Highly skilled expats and those who own businesses find this a key incentive for relocation.
• If you are a new taxpayer in Singapore read the IRAS Guide for new individual taxpayers

How to pay your taxes in Singapore

You can pay any type of taxes directly through GIRO (General Interbank Recurring Order) it is an electronic system that allows individuals to make payments like taxes, utilities, credit cards, schools feels by deducting funds directly from your bank account.

You can set up GIRO using MyTax Portal, bank portal(DBS, OCBC and UOB or AXS station.

Are you a tax resident  in Singapore?

You will be automatically considered a tax resident if you:

• possess a work pass that is valid for at least one year.
• are staying or working in Singapore for at least 183 days in a calendar year. You will be considered a tax resident for that year.
• are staying or working in Singapore across two calendar years, with your  continuous  period of stay being at least 183 days. You will be considered a tax resident for both years.
• are staying or working continuously in Singapore for 3 consecutive years. You will be a tax resident for all three years. It is worth noting that your physical presence in the country immediately before and after your employment is taken into account.

Rules are different for certain foreign professionals who are not in the country long-term, such as the directors of companies and public entertainers. See the “Tax on Salary” section below for more information.

Types of taxes in Singapore

There are some key taxes that expats relocating to Singapore should be aware of:

• Income Tax (0-24%), you can check the income tax brackets here;
• Property Tax (0-32%);
• Motor Vehicle Taxes;
• Customs and Excise Duties, imposed primarily on tobacco, petroleum products, and liquors;
• Goods and Service Taxes (9%), paid on goods and services (including imports).

If you own a company, it is important to know that a foreign worker's levy must be paid for every employee with a temporary or long-term work pass. This is paid by the company and not by individual employees. Failure to pay can result in fines and the loss of your employee’s work permit.

There is no capital gains tax or inheritance tax to be paid in Singapore.

Tax on salary in Singapore

All income earned or generated in Singapore during a tax year is considered taxable income. This includes:

• bonuses,
• commission,
• housing,
• stock options,
• meal and transport allowances.

Generally, overseas income is not taxed and does not need to be declared.

Singapore has Double Tax Agreements (DTAs) with numerous countries including Germany and the United Kingdom, as well as a limited treaty with the United States of America. DTAs prevent you from paying tax on your income twice. Check out the Inland Revenue Authority of Singapore website to see if your country has an agreement.

The country’s progressive income tax system  starts at 0% and rises to 24%. If your annual income doesn’t exceed 20,000 SGD (15,700 USD), then you do not need to pay tax.  You may still need to file a tax return if asked  to  by the authorities.

The Inland Revenue Authority of Singapore  (IRAS)  states that from  YA  2024:

• the rate of income tax on residents is 200 SGD (160 USD) on the first 30,000 SGD (23,500 USD);
• On the first 320,000 SGD (250,000 USD) you pay 44,550 SGD (34,800 USD).

For a full list of income tax brackets for tax residents, look at the Inland Revenue Authority of Singapore website.

Short-term stays

If you work in Singapore for less than 60 days, and your time out of the country is  not directly related to your work in Singapore (for example, being sent to work abroad by a Singaporean company), you are exempt from paying income  tax. If you stay or work in Singapore for 61-182 days, you will generally be taxed at a flat rate of 15%. This also applies to people with work permits who decide to leave Singapore for good in less than 183 days.  In this case, you will not be considered a tax resident for that year.

Exclusions

Certain groups of people are excluded from these exemptions. This includes:

• directors of companies,
• public entertainers,
• professionals including foreign experts,
• speakers,
• coaches, etc.

These people pay 10-22% tax, depending on their situation.

Taxes for self-employed people in Singapore

Whether you have a side business or you are a full-time freelancer, you are subject to self-employed taxes in Singapore.  This includes income received in the form of virtual currency.

You will need to submit a tax return  by April 15th  each year, or on the 18th  if you submit online.  Detailed  bookkeeping  is recommended  in Singapore.

You will also have to  include  a 4-line statement detailing your:

• revenue,
• gross profit,
• allowable business expenses,
• adjusted profits.

The IRAS will  usually  send a tax bill to you by September of the same year.

Not sure if you should call yourself self-employed? Determine your status at  the IRAS Website, and learn more in our Working in Singapore section.

Start-up tax exemptions

New start-up companies that have been in existence for less than three years are eligible for certain tax exemptions. In YA 2020, start-ups will get a 75% tax exemption on the first 100,000 SGD (78,000  USD) of normal chargeable income. The next 100,000 SGD of normal chargeable income can receive 50% tax exemption. This means the maximum exemption is 125,000 SGD (99,000 USD).