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Disclaimer The taxation system is administered by the Inland Revenue Authority of Singapore (IRAS). Singapore Taxation LawsForeigners who work in Singapore on a Work Permit or Employment Pass will be taxed in Singapore. The amount of income tax payable depends on the income and whether a person is considered resident or non resident of Singapore. Non resident for tax purposesForeigners on short term employment of less than 60 days per calendar year are considered non resident and are exempt from income tax, as are those whose main country of residence has an Avoidance of Double Taxation Agreement with Singapore. An individual is considered a non resident when working (or living) in Singapore for less than 183 days per year. A non resident's employment income is taxed at 15 percent or the resident rate, whichever is higher. Only income derived in Singapore will be taxable. Non residents will not be considered for Personal Reliefs. Foreigners working in Singapore on a Professional Visit Pass will be taxed regardless of the time spent working here. Resident for tax purposesA person is considered as a resident when:
The Not Ordinarily Resident (NOR) taxpayer schemeThe Not Ordinarily Resident (NOR) scheme was announced in the 2002 Budget Statement and is aimed at attracting people "with talents" to relocate to Singapore. Residents may apply for Not Ordinarily Resident (NOR) scheme if they fulfil the following criteria:
The NOR Scheme extends favourable tax treatment to those who meet the criteria for a period of five years from the date of assessment. The time apportionment incentive means the person will pay income tax on only a portion of their employment income in Singapore. The taxable amount will be based on the number of days spent in Singapore per calendar year, as long as they have spend more than 90 days outside Singapore for business. A minimum tax rate of 10 percent on the total apportioned employment income is payable.
The same rules apply to non-resident directors or entertainers, sportsmen and women, musicians and other professions considered to be of similar nature Taxable IncomeTaxable income includes income from a business, salary from employment, interest earned on deposits, and rental income. Tax forms are sent to the individual's postal address annually. The form must be completed listing all that person's income. Completed forms should be returned to the Internal Revenue Authority of Singapore (IRAS) within a specified time. Tax returns may also be filed online; a SingPass or an IRAS PIN will be needed.
When employment ceases in Singapore, employers must inform IRAS at least one month before termination of employment, and are expected to withhold any payments due to the employee until tax clearance is given. Reliefs and RebatesAs a tax resident, an individual is taxed on all income earned in Singapore including overseas income which is transmitted, remitted or otherwise brought into Singapore. There are personal reliefs given under the Income Tax Act. Income without personal reliefs is taxed on a graduated scale from zero percent to twenty-two percent. Tax reliefs and rebates are given in recognition of individuals' efforts. Instead of compensating for certain type of expenses fully, reliefs and rebates are given to promote certain social objectives. There are reliefs available to encourage family formation, retraining, training and upgrading of skills as well as reliefs given to those serving National Service.
Withholding TaxA non resident is liable to pay income tax on income earned in Singapore. If a person makes a payment of a specified nature to a non-resident they are required by law to withhold a percentage of that payment and remit it to the Comptroller of Income Tax.
Tax Treatment of Foreign Source IncomeAny income arising from sources outside Singapore and received in Singapore on or after 1 Jan 2004 by an individual (other than partners of a partnership) is exempt from tax. Tax Treatment of Singapore Investment IncomeInvestment income derived within Singapore by any individual on or after 1 Jan 2004 may be exempt from income tax. This includes income from annuities, or life insurance policies as well as other types of investment income.
Tax TreatiesIf a country has a tax treaty with Singapore its citizens may be protected from paying tax twice on the same income. This depends on the provisions of the treaty. Treaties have been agreed between Singapore and the following countries:
Inland Revenue Authority Singapore (IRAS) Contact Information
Further InformationAny suggestions for extra information that should be on this page?
This is the "Income Tax in Singapore" INFOrmation Page at AngloINFO Singapore. AngloINFO Singapore's INFOrmation Pages provide an online encyclopaedia covering all aspects of "Living in and moving to Singapore!". AngloINFO Singapore is your Singapore information source, for everyone living in Singapore or moving to Singapore, covering everything from the Singapore property and real estate contacts you need before and during your move to Singapore, to all aspects of everyday life in the Singapore international community for those living their lives in Singapore. | ||||||||||||||||||||||||||||||||||||||||||
