Singapore raising income taxes for top earners

Breaking away from conventional wisdom, Singapore is raising the personal income tax rate for top income earners starting with their earnings in 2016, Finance Minister Tharman Shanmugaratnam announced today in his budget speech.

“I will raise the marginal tax rates that affect the top 5% of our income earners.”

The top marginal rate will rise to 22% from 20% for a chargeable income of over S$320,000 (RM857,250).

Tharman also said state investor Temasek Holdings will be included in the net investment returns framework alongside sovereign investor GIC and the Monetary Authority of Singapore.

Under the framework, Singapore can spend up to 50% of expected long term real returns on the net assets managed by the sovereign fund and the central bank.

- Source: Reuters via TRP