Service Charge & GST in Singapore: Your Questions Answered
These are the questions people ask most often about service charge & gst. Each answer is short; follow the links for the full detail.
What does a service charge & gst calculation tell me?
Restaurant bills in Singapore often show '++': a 10% service charge, then 9% GST on the subtotal. This calculator works out the final bill.
What is the formula?
Total = menu price × 1.10 × 1.09 (≈ 1.199).
What do I need to enter?
Menu total (S$).
Is this the same as my IRAS bill?
It is an estimate based on the published rates. Your notice of assessment will reflect all reliefs, rebates and income IRAS holds for you.
Can you show an example?
For example, with these inputs:
- Menu total (S$): 80
the calculator returns:
- Service charge (10%): S$8.00
- GST (9% on food + service): S$7.92
- Total bill: S$95.92
Any tips?
- Set aside a little each month so the tax bill is not a shock, or sign up for GIRO instalments with IRAS.
- Keep receipts and records for at least five years in case IRAS asks for them.
- GST-registered businesses must show prices inclusive of GST to consumers, so a listed retail price already includes the 9%.
Background
Tax planning in Singapore is mostly about timing and reliefs rather than complex structures. Topping up CPF, contributing to SRS and claiming every relief you qualify for can lower your marginal rate band, and the savings are larger for higher earners.
Reliefs lower chargeable income before rates apply. Common ones include earned income relief, CPF relief for employee contributions, parent and handicapped parent relief, working mother's child relief, NSman relief, course fees relief, and relief for SRS contributions and CPF cash top-ups. Total personal reliefs are capped at S$80,000 a year.
The Goods and Services Tax rose from 8% to 9% on 1 January 2024. Businesses with taxable turnover above S$1 million must register, and GST-registered retailers must quote prices to consumers inclusive of GST, so most shelf prices already include it.
Related calculations
- Non-Resident Income Tax Calculator: Non-resident employees pay the higher of 15% flat or progressive resident rates on employment income, without personal reliefs.
- GST Calculator (9%): Adds Singapore's 9% Goods and Services Tax to a price.
- Remove GST Calculator (Reverse GST): Works backwards from a GST-inclusive price to show how much of it is GST.
- SRS Tax Savings Calculator: Shows how much tax you save by contributing to the Supplementary Retirement Scheme.
Try it yourself with the Service Charge & GST Calculator.
Run your own numbers: Service Charge & GST Calculator