Salary vs Dividend Calculator for Singapore Business Owners
If you own 100% of your company, find the mix of salary, director fee and dividends that pays the least tax. You can leave the rest as retained earnings. The calculator finds your breakeven pay level automatically.
Your company
Net profit after all other costs, before any salary, fee or CPF for you.
CPF is locked until retirement or used for housing. Choose 100¢ if you'd spend it like cash anyway.
More options
For example spouse, child or SRS top-ups (up to $15,300).
The rest stays as retained earnings. This changes when you get the cash, not the tax.
Lowest-tax mix
$96,000 salary + $84,200 director fee, the rest as dividends
Total tax
$31,094
7.8% of profit
Tax saved vs dividends only
$19,481
per year
You're better off by
$19,346
counting CPF at your value
| Per year | Dividends only | Lowest-tax mix | Your mix |
|---|---|---|---|
| Salary | $0 | $96,000 | $60,000 |
| Director fee | $0 | $84,200 | $40,000 |
| Corporate tax | $50,575 | $17,144 | $31,818 |
| Personal income tax | $0 | $13,950 | $4,155 |
| Total tax | $50,575 | $31,094 | $35,973 |
| Effective tax rate on profit | 12.6% | 7.8% | 9.0% |
| Take-home pay (after CPF and tax) | $0 | $147,050 | $83,845 |
| Dividend (tax-free) | $349,425 | $186,201 | $257,847 |
| Cash to owner | $349,425 | $333,251 | $341,692 |
| CPF credited (employee + employer) | $0 | $35,520 | $22,200 |
| Retained in company | $0 | $0 | $0 |
| Total owner value | $349,425 | $368,771 | $363,892 |
Try your own mix
Your mix leaves you $4,879 worse off than the lowest-tax mix.
How the breakeven works
Every dollar you pay yourself as salary or director fee is a company expense. It saves corporate tax at the company's rate, but you pay personal income tax on it at your own rate.
Every dollar left in the company is taxed once at the corporate rate. After that, Singapore's one-tier system makes dividends tax-free. So choosing between a dividend and retained earnings only changes when you get the cash. It doesn't change the tax.
The rule: keep paying yourself while your personal tax rate on the next dollar is lower than the company's rate on the profit you'd otherwise leave in. Stop when your rate goes above it.
Salary or director fee? A director fee has no CPF. Salary adds 37% in CPF (for age 55 and below). Employer CPF is tax-free to you, but you can't spend it yet. Salary usually only comes out ahead if you value CPF at about 85–95¢ per dollar or more.
Tax rate on the next dollar
| Company profit | Rate |
|---|---|
| First $10,000 | 4.25% |
| Next $190,000 | 8.5% |
| Above $200,000 | 17% |
| Your chargeable income | Rate |
|---|---|
| Up to $20,000 | 0% |
| $20,000–$40,000 | 2–3.5% |
| $40,000–$80,000 | 7% |
| $80,000–$120,000 | 11.5% |
| $120,000–$160,000 | 15% |
| Above $160,000 | 18–24% |
Want us to set up your pay for this year?
Our tax team can confirm your figures, and prepare the director's fee resolution and dividend vouchers. We also handle your company's tax filing.
Estimates only, not tax advice. The calculator assumes a Singapore tax-resident owner who holds 100% of the shares. It uses IRAS resident rates (YA2024 onwards), the partial and start-up tax exemptions, 2026 CPF rates and the $8,000 monthly wage ceiling. It doesn't include corporate or personal tax rebates, non-resident director fees (taxed at 24%), bonuses or foreign income. Your pay also has to be reasonable for the work you do.
