Income tax in Singapore

According to the duration of your professional stay in Singapore or according to your tax status in the country, you may have to pay income tax in Singapore.

What is a “tax resident” and a “non-tax resident” in Singapore?

Are considered as tax residents in Singapore foreign workers having stayed less than 183 days in the country during the fiscal year.

Are considered as non-tax residents in Singapore foreign workers having stayed more than 183 days in the country during the fiscal year.

Non-tax residents:

• If you have worked 60 days or less in Singapore:

If you have worked in Singapore for less than 60 days, you will not be taxed on your income earned in the country. This does not apply to CEO's, directors and artists.

• If you have worked between 60 days and 182 days in Singapore:

If you have worked in Singapore between 60 and 182 days, you will be taxed at a rate of 15% for all your incomes earned in the country. Directors and CEO's are taxed at a rate of 20%.

Tax residents:

Tax residents in Singapore must pay income tax at a progressive rate not exceeding 20%. Tax allowances are possible (non-refundable professional expenses for example).

The N.O.R. tax system - “Not Ordinarily Resident scheme”:

The N.O.R. tax system was created for “non-ordinary” residents in Singapore, i.e. people under a non-tax resident status for 3 consecutive years and having a tax resident status for the current year. Basically, under the N.O.R. system, taxpayers are allowed to pay income tax in proportion to the effective time spent in Singapore. The system is very advantageous for people frequently traveling outside Singapore for business purposes. To register with the N.O.R. program, download an application form on the I.R.A.S. website and attach it to your regular tax return file at the end of the fiscal year.

For further information about the N.O.R. program, visit the I.R.A.S. website at http://www.iras.gov.SGD/.

Double taxation:

Singapore has signed conventions with several countries to avoid double taxation. Check with your national tax services if your country has signed this agreement with Singapore!

How to file a tax return?

At the end of the fiscal year, running from January 1st to December 31st, your must file a tax return. You can file your tax return by postmail or directly online or by telephone. For further information, visit the Inland Revenue Authority of Singapore at http://www.iras.gov.SGD/.

Income tax is payable in one or several instalments. In other words, income tax is not deducted at source.

 Important:

It is compulsory to ask a tax clearance certificate before leaving Singapore!

 

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