Singapore Income Tax for Malaysians on Employment Pass (YA 2025)
Tax time is the one financial topic that makes even otherwise switched-on Malaysians in Singapore go quiet and hope for the best. I get it — we grew up with a Malaysian tax system (LHDN, EA forms, PCB deductions), and Singapore’s system feels foreign at first. Different acronyms, different thresholds, different logic.
The good news: Singapore’s income tax system is actually quite straightforward once you understand the fundamentals. And for most Malaysians on Employment Pass, the process is largely pre-populated by your employer — you are really just reviewing, claiming reliefs, and submitting.
This guide covers everything for Year of Assessment 2025 (which means your income earned in the 2024 calendar year).
The First Question: Are You a Singapore Tax Resident?
Before anything else, you need to establish your tax residency status, because it determines how you are taxed.
You are a Singapore tax resident for YA 2025 if:
- You were a Singapore Citizen or Permanent Resident (not applicable to most Malaysians on EP)
- You were physically present or worked in Singapore for 183 days or more in 2024
- You were in Singapore for a continuous period spanning 3 consecutive years (even if individual years were under 183 days)
For most Malaysians on Employment Pass who worked a full year in Singapore, you are almost certainly a tax resident. If you only arrived mid-year and worked fewer than 183 days, you may be a non-resident for that year.
Why it matters: Tax residents are taxed at the progressive resident rates (0-24%), which are generally much more favourable. Non-residents are taxed at a flat 15% on employment income — or the resident rate, whichever results in higher tax. For most income levels, non-resident status means paying more.
If you are in your first partial year in Singapore, do the math on your residency days before filing. If you are close to the 183-day threshold, your exact residency count matters.
The Double Taxation Question: What About Malaysian Income Tax?
A common worry for newly arrived Malaysians: “Do I have to pay tax in both countries?”
The answer is generally no, and the legal basis is the Malaysia-Singapore Double Tax Agreement (DTA). Under the DTA, your Singapore employment income is taxable only in Singapore. You do not declare your Singapore salary to LHDN or pay Malaysian income tax on it.
However, a few situations still require Malaysian tax attention:
- If you have Malaysian-sourced income (rental income from a property in Malaysia, dividends from Malaysian companies, freelance income earned from Malaysian clients)
- If you are a director of a Malaysian company receiving director fees
- If you have passive income in Malaysia
In these cases, that specific income may still be subject to Malaysian tax. Your Singapore employment income remains Singapore-taxable only.
My recommendation: even if you think you have no Malaysian tax obligations, it is worth having a brief conversation with a Malaysian tax accountant in the year you first move. Getting this confirmed once gives you peace of mind for subsequent years.
EP Holders and CPF: The Missing Piece
One thing that catches many Malaysians off guard: Employment Pass holders do not contribute to CPF. CPF (Central Provident Fund) is Singapore’s mandatory retirement and housing savings scheme, but it applies only to Singapore Citizens and Permanent Residents.
This has two implications for your taxes:
- You cannot claim the CPF Ordinary Account (CPF OA) tax relief that Singapore Citizens and PRs can claim.
- You do not get the retirement savings subsidy that CPF effectively provides through employer and employee contributions.
The good news is that there is a voluntary alternative — SRS — which I will cover in detail below. But it is worth internalising early: as a Malaysian on EP, your only Singapore retirement tax shelter is SRS. Use it.
Singapore Tax Rates for YA 2025
Here are the progressive tax rates for Singapore tax residents based on income earned in 2024:
| Chargeable Income | Rate | Tax on This Band |
|---|---|---|
| First S$20,000 | 0% | S$0 |
| Next S$10,000 | 2% | S$200 |
| Next S$10,000 | 3.5% | S$350 |
| Next S$40,000 | 7% | S$2,800 |
| Next S$40,000 | 11.5% | S$4,600 |
| Next S$40,000 | 15% | S$6,000 |
| Next S$40,000 | 18% | S$7,200 |
| Next S$40,000 | 19% | S$7,600 |
| Next S$40,000 | 19.5% | S$7,800 |
| Next S$40,000 | 20% | S$8,000 |
| Over S$320,000 | 22% | — |
Your chargeable income is your total income minus all eligible tax reliefs. This is why claiming every applicable relief matters — it reduces the amount of income that gets taxed.
As an example: if your gross income is SGD 120,000 and you claim SGD 40,000 in reliefs (including SRS — more on this shortly), your chargeable income is SGD 80,000. The effective tax rate on that is significantly lower than on the full SGD 120,000.
Tax Reliefs Available to Malaysians on EP
This is where Malaysians need to pay attention, because we cannot claim everything Singapore Citizens and PRs can. Here is what EP holders can claim:
Earned Income Relief: Automatically granted based on your age. For those below 55: SGD 1,000. This is applied automatically — you do not need to do anything.
Course Fees Relief: Up to SGD 5,500 per year for qualifying courses and skills upgrades. The course must be relevant to your current employment or trade and conducted by an approved institution. Keep receipts.
SRS Contributions: The full amount you contributed to SRS during the year is deductible from your chargeable income. For foreigners, the contribution cap is SGD 35,700 per year. This is the most powerful relief available to us.
Donations: Cash donations to approved charities (IPCs) in Singapore are tax-deductible at 2.5x the donated amount. So a SGD 1,000 donation gives you a SGD 2,500 deduction.
NSman Relief: Only applicable if you have served in Singapore’s National Service, which generally does not apply to Malaysians on EP.
What you cannot claim as an EP holder:
- CPF Relief (no CPF contributions)
- Spouse Relief
- Child Relief
- Grandparent Caregiver Relief
- Working Mother’s Child Relief
- Most other family-related reliefs
SRS: The Retirement Tax Shelter Every Malaysian on EP Should Use
I cannot overstate how important the Supplementary Retirement Scheme is for Malaysians in Singapore. Since we have no CPF, SRS is our only tool for getting a tax deduction on retirement savings. And it is genuinely powerful.
How SRS works:
- Open an SRS account at one of the three appointed banks: DBS, OCBC, or UOB.
- Contribute any amount up to SGD 35,700 per year (the foreign cap). Singapore Citizens and PRs have a lower cap of SGD 15,300.
- Your contributions reduce your chargeable income by the same amount — dollar for dollar.
- The money in your SRS account can be invested in stocks, ETFs, unit trusts, insurance plans, and fixed deposits.
- At retirement (statutory retirement age or older), withdrawals are taxed at only 50% of the withdrawn amount.
The maths on why this matters:
Let’s say you are earning SGD 150,000 gross and you contribute the full SGD 35,700 to SRS. Your chargeable income (after Earned Income Relief and SRS) drops to roughly SGD 113,300. The difference in tax between SGD 150,000 and SGD 113,300 chargeable income is meaningful — we are talking potentially SGD 5,000-7,000 in tax savings depending on your exact situation.
And the SRS money does not just sit there — you invest it. Most SRS holders invest in ETFs, Singapore government bonds, or robo-advisor portfolios through the SRS portal.
My SRS strategy: I contribute a lump sum in December each year, usually as close to the SGD 35,700 cap as I can manage. I invest the SRS balance in a low-cost global ETF portfolio through one of the SRS-eligible brokers. This way, the tax deduction reduces my bill in April, and the investment compounds over the long term.
If there is one thing you do after reading this article, it should be opening an SRS account. It is free to open, takes 15 minutes at any DBS/OCBC/UOB branch or online, and the tax benefit is immediate.
Calculate Your Singapore Income Tax
Enter your salary, reliefs, and SRS contributions to see your estimated tax bill for YA 2025 — and how much SRS could save you this year.
Step-by-Step: Filing via the IRAS myTax Portal
The e-filing deadline for YA 2025 is 18 April 2025. Late filing can result in penalties, so mark this date.
Step 1: Log in to myTax Portal Go to mytax.iras.gov.sg and log in with your Singpass. If you do not have Singpass, you will need a IRAS PIN — apply for one in advance.
Step 2: Check your pre-filled income IRAS pre-fills your income information based on the IR8A submitted by your employer. Review this carefully. The IR8A is Singapore’s equivalent of Malaysia’s EA form — it shows your gross salary, bonuses, benefits-in-kind, and any employer-provided allowances.
Step 3: Review all income sources If you have any income beyond your main employment — freelance work, rental income, investment income — declare it here. Singapore taxes on a territorial basis, so you only declare Singapore-sourced income.
Step 4: Add your tax reliefs This is the important step. The portal will automatically apply Earned Income Relief. You need to manually add:
- Course Fees Relief (enter the amount and institution details)
- SRS contributions (if your SRS bank has not already auto-submitted this, you may need to enter it manually)
- Donation deductions (keep your IPC tax receipts)
Step 5: Review your Notice of Assessment preview Before submitting, the portal shows you a summary of your chargeable income and estimated tax. Double-check that all reliefs are reflected. If something looks wrong, do not submit yet — contact IRAS or review your entries.
Step 6: Submit Once satisfied, submit electronically. You will receive a confirmation. Your Notice of Assessment (NOA) will be issued by IRAS, typically within a few weeks.
Step 7: Pay (or get refunded) If you owe tax, you can pay via GIRO, PayNow, or AXS. If you have overpaid through tax withheld (less common for employees), you will receive a refund. If you set up GIRO for tax payments, IRAS will debit in instalments automatically.
What the IR8A Form Tells You
Your IR8A is the source document for your tax return. It includes:
- Gross salary
- All bonuses and commissions
- Benefits-in-kind (company car, housing allowances — these are often taxable)
- Stock options exercised during the year (this catches people out — if you exercised stock options, the gain is taxable employment income in Singapore)
Ask your HR or payroll team for your IR8A by January of the filing year. In most cases, larger employers submit it directly to IRAS and it pre-populates automatically.
If you receive any overseas allowances, check carefully whether they are Singapore-sourced. Generally, allowances paid by your Singapore employer for work done in Singapore are taxable here, regardless of currency.
Frequently Asked Questions
Do Malaysians on Employment Pass pay Singapore income tax?
Yes — if you are a Singapore tax resident (which applies to most Malaysians who work a full year in Singapore), you pay Singapore income tax on your Singapore-sourced income at resident progressive rates ranging from 0% to 22%.
Do I still need to pay Malaysia income tax if I work in Singapore?
Generally no. The Malaysia-Singapore Double Tax Agreement prevents double taxation on the same income. Your Singapore employment income is taxed only in Singapore. However, if you have Malaysian-sourced income — such as rental income from a Malaysian property or dividends from Malaysian companies — that may still be subject to Malaysian tax. Check with a Malaysian tax advisor if you have any Malaysian income streams.
Can EP holders contribute to CPF?
No. CPF contributions are mandatory only for Singapore Citizens and Permanent Residents. As an Employment Pass holder, you do not contribute to CPF and neither does your employer on your behalf. This means you also cannot claim CPF-related tax reliefs.
What is SRS and should Malaysians contribute?
Yes — strongly. SRS (Supplementary Retirement Scheme) is a voluntary scheme that lets you contribute up to SGD 35,700 per year (for foreigners) and deduct that full amount from your chargeable income. At retirement, only 50% of your withdrawals are taxable. Since Malaysians on EP have no CPF, SRS is our only retirement tax shelter in Singapore, making it especially valuable.
What is the filing deadline for Singapore income tax?
The e-filing deadline is 18 April each year. You file for Year of Assessment 2025 (income earned in 2024) by 18 April 2025. Filing is done via the IRAS myTax Portal at mytax.iras.gov.sg using your Singpass credentials.
What is an IR8A form?
IR8A is the income statement your Singapore employer issues, equivalent to Malaysia’s EA form. It lists your gross income, bonuses, and taxable benefits for the year. Most larger employers submit IR8A directly to IRAS, which pre-populates your myTax filing automatically. If it is not pre-populated, ask your HR team for a copy.
What reliefs can Malaysians claim in Singapore?
EP holders can claim Earned Income Relief (automatic), Course Fees Relief (up to SGD 5,500 for qualifying courses), charitable donations (2.5x deduction to approved charities), and SRS contributions (up to SGD 35,700). We cannot claim CPF Relief, spouse/child relief, or most other family-related reliefs that are available to Singapore Citizens and PRs.
How does the 183-day tax residency rule work?
If you are physically present in or working from Singapore for at least 183 days in a calendar year, you are treated as a Singapore tax resident for that year and taxed at the favourable progressive resident rates. If you worked fewer than 183 days — typically in your first partial year or if you took an extended break outside Singapore — you may be a non-resident, and your employment income is taxed at 15% flat or the resident rate, whichever is higher. In practice, for most Malaysians working a full year, tax residency is straightforward.