Comprehensive Guide to Working as a Dentist in Singapore (Part Three)

Moving to any country comes with the significant financial consideration of housing costs and taxation. In this third and final part of our comprehensive guide, we explore the intricacies of housing and taxation options and how they influence decisions in this bustling city-state.

Housing Costs in Singapore

Moving to Singapore comes with the significant financial consideration of housing costs. Whether you’re an expat renting a home or a Singaporean/PR looking to purchase a flat, housing expenses will be a substantial part of your budget.

Renting in Singapore: Public or Private Housing?

For most expats, renting becomes the practical choice, but it’s essential to be aware of the costs and factors influencing the decision. There are two main housing options to consider:

1) Public Housing – HDB Flats

Housing Development Board (HDB) flats offer more affordable rental options, but they may come with basic designs and amenities. Rent for a room in a shared HDB flat or a condo apartment with a shared bathroom could range from $700 to $2,000 per month.

2) Private Housing – Condominium Apartments

Condominium apartments, often referred to as “condos,” offer more luxurious living with additional amenities like gyms and pools. However, they come with a higher price tag. Renting a studio apartment in a non-prime location may cost around $1,800, while prime locations can escalate to $8,000.

Location Matters: City Centre vs. City Fringe

The location of your rental property significantly impacts its cost. Properties closer to the city center tend to be more expensive. However, Singapore’s efficient public transport system allows for cost-saving options by opting for places in the city fringe. Additionally, living in neighbourhoods away from the city center offers unique character and affordable dining choices.

Landlord’s Rules and Their Impact

As a renter, you must consider the rules and terms set by your landlord. Some landlords may impose restrictions on cooking, visitors, laundry, and air-conditioning usage. These rules can significantly influence your daily expenditure and lifestyle. If you prefer more freedom and flexibility, consider seeking accommodation in an apartment shared only with fellow tenants.

Singapore’s efficient public transport system allows for cost-saving options by opting for places in the city fringe. Additionally, living in neighbourhoods away from the city center offers unique character and affordable dining choices.

Purchasing a Home: Eligibility and Costs

For Singaporeans and PRs eligible to purchase a flat, the costs of buying a home can vary based on factors such as location, size, and property type. Homebuyers should budget around $1,500 to $6,000 per month.

Comprehensive Guide to Working as a Dentist in Singapore (Part One)

Unraveling Singapore Taxation

Navigating Singapore’s taxation system can be a daunting task for individuals and businesses alike. The Inland Revenue Authority of Singapore (IRAS) mandates income-earning entities to declare their earnings, both domestic and foreign, for taxation purposes. While the state has streamlined the process, complexities and time constraints often leave taxpayers bewildered. At 3E Accounting, we understand these challenges and are dedicated to providing professional tax accountant services to help you understand tax filing in Singapore.

Personal Income Tax

Singapore’s personal income tax follows a progressive structure, making it one of the world’s lowest. To ascertain an individual’s tax liability, several factors come into play:

Profile: Singapore’s Dental Services and Market

Progressive Resident Tax Rate: Ranging from 0% to 22% for income exceeding S$320,000.

No Capital Gain or Inheritance Tax: Singapore stands apart by not imposing taxes on capital gains or inheritances.

Taxation Based on Residency: Individuals are taxed solely on their income earned within Singapore. Overseas earnings are generally exempt, except for certain exceptions.

Tax Filing Due Date: Individuals must file their taxes by April 15 each year, assessed on a preceding year basis.

Personal Tax for Non-Residents

If you are a foreigner who spent less than 183 days in Singapore during the tax year, you are classified as a non-resident for tax purposes. Non-residents are subject to specific tax rules, as follows:

Short-Term Employment Exemption: For individuals on short-term employment (60 days or less in a year), employment income is exempt from tax, except for directors, public entertainers, and professionals.

61-182 Days Stay: If you are in Singapore for 61-182 days, you will be taxed on all income earned in the country. Personal reliefs are not applicable, and employment income is taxed at 15% or the progressive resident tax rate, whichever is higher.

Tax Rates for Other Incomes: Director fees, remuneration, consultant fees, and all other incomes are taxed at rates ranging from 15% to 22%.

Unlike many other countries, Singapore does not impose capital gains tax, making it attractive for investors.

Capital Gains Tax, Inheritance Tax, and Estate Duty

Unlike many other countries, Singapore does not impose capital gains tax, making it attractive for investors. Additionally, inheritance tax, commonly known as Estate Duty, was abolished in 2008. Consequently, individuals need not worry about estate taxes upon their demise.

In Conclusion

For dentists looking to embrace new opportunities and experiences, Singapore’s dynamic and thriving environment holds the promise of a fulfilling and rewarding career in the world of dentistry. With its exceptional quality of life, vibrant economy, and strong support for the dental profession, Singapore stands tall as a prime destination for dentists seeking to make a significant impact on oral healthcare and contribute to the well-being of the community. 

The housing costs in Singapore, though significant, can be managed with careful planning, and expatriates and locals alike have the option to choose between public housing and private condominiums based on their preferences and budget.

Navigating the Singapore taxation system can be complex, but with the help of professional tax accountant services, dental professionals can ensure compliance and ease the burden of tax filing.

Comprehensive Guide to Working as a Dentist in Singapore (Part Two)