Top income earners will have to pay more personal income taxes starting 2017, announced Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam in his Budget address today (Feb 23).
This move will affect the top five per cent of income earners, who earn at least S$160,000. But it will hit highest income earners the hardest, said Mr Tharman, as marginal income tax rates rise significantly towards the top end of incomes.
Noting that support for the low-income has been enhanced over the years, Mr Tharman said it is fair that this support should come from revenues contributed by the high-income group. “Those with higher incomes have also been seeing stronger growth in incomes than the average Singaporean in recent years,” he noted.
Marginal tax rates for the highest income earners will increase by two percentage points, to 22 per cent. This applies to those earning above S$320,000.