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Q：
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What is the definition of resident in Singapore?
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A：
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You will be treated as a tax resident for a particular Year of Assessment (YA) if you are a:
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Singapore Citizen (SC) or Singapore Permanent Resident (SPR) who resides in Singapore except for temporary absences; or
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Foreigner who has stayed / worked in Singapore (excludes director of a company) for 183 days or more in the year preceding the YA.
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Q：
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What is the tax rate of resident?
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A：
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Singapore's personal income tax rates for resident taxpayers are progressive. This means higher income earners pay a proportionately higher tax, with the current highest personal income tax rate at 22%. Refer to Resident Tax Rates.
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Q：
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What is the definition of non-tax resident in Singapore?
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A：
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You will be considered as a Non Resident if you work in Singapore for less than 183 days. The non-resident professional is subject to a final withholding tax of 15% on the gross income/fee derived from services performed in Singapore. They may opt to be taxed at 22% of net income instead.
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Q：
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If I stay or work in Singapore only for a short-term period, do i need to pay tax?
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A：
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If you are a non-resident and exercised employment in Singapore for 60 days or less in a year, your short-term employment income is exempt from tax. This rule does not apply if you are a director of a company, a public entertainer or a professional in Singapore. Professionals include foreign experts, foreign speakers, queen's counsels, consultants, trainers, coaches, etc.
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Q：
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What is tax obligation for non-resident directors?
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A：
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A company director who is physically present in Singapore for less than 183 days in the year preceding the Year of Assessment (YA) is a non-resident director. A non-resident director’s taxable income is the remuneration in the form of cash as well as non-cash payments made by the company which includes Salary, Bonus, Director’s Fees, Accommodation provided etc.
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Remuneration Received in the Capacity as a Board Director
Employer’s obligation:
Withhold tax at 22% (20% for income due and payable prior to 1 Jan) of all payments made to you in the capacity as a non-resident director of the company, file Form IR37 and pay the withholding tax by the 15th of the month following the date of payment to you.
Director’s obligations:
The director does not need to file a tax return as the employer has withheld tax at source and e-filed the withholding tax.
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Remuneration Received in the Capacity as a Managing Director
Employer’s obligation:
Withholding tax is not applicable.
Director’s obligations:
Declare the employment income received in the capacity as a managing director in the tax return for the Year of Assessment (YA).
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Gains from Exercise of Stock Options (ESOP) or Vesting of Stock Awards (ESOW)
Employer’s obligations:
The employer must file the Form IR21A to report the gains from ESOP/ESOW within 30 days from the date of exercise, assignment, release or acquisition of the shares.
Director’s obligations:
The director will receive a tax bill on the amount of tax to pay.
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FAQ
