The extent of your tax liability will depend on your tax residency status. If you are issued with a work pass of at least 1 year validity, you will be treated as a tax resident upfront.
Your tax residency will be reviewed at the point of tax clearance when you cease your employment based on our tax residency rules. You will be regarded as a non-resident if your stay in Singapore is less than 183 days.
Tax resident (183 days or more)
Under our tax residency rules, you will be regarded as a tax resident for the calendar year(s) concerned if you stay or work in Singapore:
- for at least 183 days in a calendar year; or
- continuously for 3 consecutive years; or
- for at least 183 days for a continuous period over two years (from 1/1/2007)
Otherwise, you are regarded as a non-resident for tax purposes.
The number of days in Singapore include weekends and public holidays. Any absences from Singapore that are temporary (eg overseas vacation leave) or incidental to your Singapore employment (eg business trips) are still regarded as employment exercised in Singapore for the purpose of determining your tax residency.
If you are a resident
- You will be taxed on all income earned in Singapore.
- Your income, after deduction of tax reliefs, will be taxed at progressive resident rates.
- Your foreign-sourced income brought into Singapore on or after 1 Jan 2004 is tax exempt.
- You are required to fill in Form B1 (Income Income tax return for Resident).
Tax implications at a glance
If your period of stay (including work) in Singapore |
Resident status |
Tax implications |
| Is at least 183 days in a year |
Resident for that year |
All your income will be taxed at progressive resident rates.
You may claim tax reliefs. |
| Is at least 183 days for a continuous period over two years |
Resident for both years |
As above |
| Covers three consecutive years |
Resident for all three years |
As above |
If you are here for at least 183 days in a year
Example:
You have stayed or worked in Singapore from 01 Jun 2010 to 03 Dec 2010 (186 days). You will be taxed as a resident for the Year of Assessment (YA) 2011.
| YA |
Period of stay (inclusive of work) in Singapore |
Resident Status |
| 2012 |
01 Jun 2011 to 03 Dec 2011 (186 days) |
Resident |
If you are in Singapore for at least 183 days straddling two years
Under the two-year administrative concession, you will be regarded as a tax resident for the two years if you stay or work in Singapore for a continuous period of at least 183 days. The number of days in Singapore include weekends and public holidays.
Example:
You have stayed or worked in Singapore from 03 Nov 2009 to 07 May 2010 (186 days). You will be taxed as a resident for Years of Assessment 2010 and 2011.
| YA |
Period of stay (inclusive of work) in Singapore |
Resident Status |
| 2011 |
03 Nov 2010 to 31 Dec 2010 (59 days) |
Resident |
| 2012 |
01 Jan 2011 to 07 May 2011 (127 days) |
Resident |
| |
|
|
If you are in Singapore for three consecutive years
Under the three-year administrative concession, if you stay or work in Singapore continuously for three consecutive years, you will be regarded as a tax resident for all the three years even though the number of days you are in Singapore is less than 183 days in the first and third year.
Example:
You have stayed or worked in Singapore from 03 Nov 2008 to 07 May 2010. You will be taxed as a resident for YA 2009 to 2011.
| YA |
Period of stay (inclusive of work) in Singapore |
Resident Status |
| 2010 |
03 Nov 2009 to 31 Dec 2009 (59 days) |
Resident |
| 2011 |
01 Jan 2010 to 31 Dec 2010 (365 days) |
Resident |
| 2012 |
01 Jan 2011 to 07 May 2011 (127 days) |
Resident |
Non-resident (Less than 183 days)
If you are a non-resident:
- You will only be taxed on all income earned in Singapore.
- You will not be entitled to tax reliefs.
- Your employment income will be taxed at a flat rate of 15% or the progressive resident rates, whichever gives rise to a higher tax amount.
- Director's fees will be taxed at the prevailing rate of 20%.
- You are required to fill in Form M (Income Tax Return for Non-Residents)
Tax Implications at a glance
|
Resident status |
Tax implications |
| If you are here for 61 to 182 days |
Non-Resident- |
- Your employment income is taxed at 15% or progressive resident rates, whichever gives rise to a higher tax amount.
- Director's fees and other income are taxed at the prevailing rate of 20%.
- You are not entitled to tax reliefs. |
| If you are employed for 60 days or less |
Non-Resident |
- Your short-term employment income is exempt from tax.
- This rule does not apply if you are a director of a company.
- Tax exemption does not apply if your absences from Singapore are incidental to your Singapore employment. In this case, your total income (including income for services rendered outside Singapore) is taxable in full in Singapore.
|
If you are here for 61 days to 182 days in a year
You will be regarded as a non-resident. The number of days in Singapore include weekends and public holidays.
Example:
| YA |
Period of stay (inclusive of work) in Singapore |
Resident Status |
| 2012 |
03 Jul 2011 to 31 Dec 2011 (182 days) |
Non-Resident |
If you are employed for 60 days or less in a Year
You will be regarded as a non-resident. Your employment income is exempt from tax if you are here on short term employment for not more than 60 days in a year. The number of days in Singapore includes weekends and public holidays.
Example:
| YA |
Period of employment |
Resident Status |
| 2011 |
03 Nov 2010 to 31 Dec 2010 (59 days) |
Non-Resident (Exempt) |
| 2012 |
01 Jan 2011 to 01 Mar 2011 (60 days) |
Non-Resident (Exempt) |
| |
|
|
Tax exemption does not apply if your absences from Singapore are incidental to your Singapore employment. Total income (including income for services rendered outside Singapore) from 1 Jun 2009 to 31 Dec 2009 and 1 Jan 2010 to 30 Jul 2010 in example below is taxable in full in Singapore.
Example:
| YA |
Period of employment |
Resident Status |
| 2011 |
01 Jun 2010 to 31 Dec 2010
Overseas business trips (164 days)
Physical presence in Singapore (50 days)
|
Resident |
| 2012 |
01 Jan 2011 to 30 Jul 2011
Overseas business trips (162 days)
Physical presence in Singapore (50 days)
|
Resident |
| |
|
|