You are considered a tax resident if you:
- Have been in Singapore for at least 183 days in a calendar year.
- Have been physically present or working in Singapore for three consecutive years, even though the number of days you have spent in Singapore is less than 183 days in the first and third year.
What this means for a tax resident is that:
- All income earned in Singapore and any overseas income that is brought into Singapore will be taxed.
- After deducting personal relief, income will be taxed at graduated rates from 0% to 20% (See IRAS website for more on tax relief).
- ·Types of relief you are entitled to, subject to conditions, include support of dependants, course fees paid for attending academic and professional courses, and premiums paid on life insurance policies.
Click here to view income tax rates for residents
You are considered a non-resident if you have been in Singapore for less than 183 days in a calendar year.
You will be exempted from paying income tax if you have been employed for 60 days or less in a calendar year. However, this rule does not apply if you are a director, public entertainer or exercising a profession in Singapore.
Non-residents will be:
- Taxed only on income earned in Singapore.
- Unable to claim for personal relief.
- Taxed on their employment income at a flat rate of 15% or the resident rates, depending on which gives rise to higher tax (For director's fees and income other than employment, they will be taxed at a flat rate of 20% from Year of Assessment 2005.)
- Exempted from tax on remittances made to Singapore.
Click here to view income tax rates for non-residents.
For further information, please visit www.iras.gov.sg.
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