Chargeable income in Singapore refers to the taxable income of an individual or a company after deducting allowable expenses, reliefs, and rebates from their assessable income. In other words, it’s the income on which tax is calculated.
For individuals, chargeable income is calculated by subtracting personal reliefs, deductions, and other allowances from their assessable income. For companies, chargeable income is computed by deducting allowable business expenses, capital allowances, and other deductions from their assessable income. Once the chargeable income is determined, it is subject to tax at the prevailing corporate tax rate for companies or progressive tax rates for individuals in Singapore.