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Finance Minister Lawrence Wong announced changes to Singapore's tax system in his Budget 2022 statement.

Currently, those who earn more than S$320,000 have to pay a personal income tax rate of 22 per cent.

Going forward, with effect from the Year of Assessment 2024, those earning more than S$500,000 to S$1 million will pay an income tax rate of 23 per cent for the portion of chargeable income in excess of S$500,000.

Those earning more than S$1 million will pay an income tax of 24 per cent for the portion of chargeable income in excess of S$1 million.

"The portion of chargeable income in excess of S$500,000 up to S$1 million dollars will be taxed at 23 per cent, while that in excess of S$1 million will be taxed at 24 per cent, both up from 22 per cent today."

This increase is expected to affect the top 1.2 per cent of personal income taxpayers and will raise S$170 million of additional tax revenue per year.

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