Tax Foundations
Understanding key tax terms
30 October 2025
4 min read
Filing taxes for the first time might feel like a big step, but you’re not alone. Everyone starts somewhere, and each step you take builds your confidence.
In Singapore, the process is pretty straightforward. But before understanding how the tax system works, let us explain some key terms that will help you fully understand your tax obligations.
Key tax terms made easy:
| Term | What does it mean? |
|---|---|
| Tax residency |
Tax residency determines how you're taxed. You're considered a Singapore tax resident if:
You’re a Singaporean or PR who usually lives here (even if you need to be overseas temporarily for travel or study); or You’re a foreigner who has:
|
| Taxable income |
It refers to your total income that are subject to tax in Singapore, before any deductions or tax reliefs are subtracted. Some examples of taxable income are:
|
| Tax reliefs and deductions | These are the amounts you can subtract from your taxable income to reduce the tax you pay. |
| Auto-Inclusion Scheme (AIS) for Employment Income / Pre-filling of Self-Employment Income Scheme |
It’s a system that helps make tax filing easier. Your organisation (like your employer or your company engaging you as a self-employed commission agents or PHC driver) sends your income info straight to IRAS.
So, when you file your tax return, most of it is already filled in for you. You just need to check that it’s correct and add anything that’s missing and proceed to submit it. |
| Chargeable income | Your total income minus all the deductions and tax reliefs you can claim. This is the final amount that IRAS will use to compute your taxes you need to pay using Singapore's tax rates. |
| Income Tax Return | It is the tax form you used to file your income taxes to IRAS. |
| Notice of Assessment (NOA) | Your tax bill that tells you how much income tax you need to pay to IRAS. |
| myTax Portal | A secured and personalised portal for you to file your taxes online, check your tax bill, make payments, and manage your tax transaction digitally with IRAS. |
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