If you are contracted to be based overseas to render your full services wholly outside Singapore, you are not liable to tax in Singapore as the income is sourced outside Singapore. It does not matter where and how you are being paid. Your employer will not need to prepare the Form IR8A for you to file your tax in Singapore. If you work in Singapore as part of your overseas employment, the income attributable to services rendered in Singapore is taxable in Singapore unless the employment is exercised for not more than 60 days in a calendar year. For employment of 61 to 182 days in Singapore, you will be taxed at a flat rate of 15% or resident rates, whichever gives a higher tax and no personal reliefs would be granted. Your employer will have to seek tax clearance when you cease employment in Singapore.
Generally, overseas income received in Singapore on or after 1 Jan 2004 is not taxable. These include overseas income paid into a Singapore bank account.
You do not need to declare overseas income that is not taxable.
When is overseas income taxable
Overseas income is taxable in Singapore if...
- It is received in Singapore through partnerships in Singapore.
- Your overseas employment is incidental to your Singapore employment. That is, as part of your work here, you need to travel overseas.
- Your overseas employment income is for services rendered in Singapore.
Tax treatment in Singapore
As a Singapore citizen or tax resident in Singapore, the income from your employment exercised outside Singapore on behalf of Singapore government is deemed to have derived from Singapore.
All your gains from such employment (including overseas allowances) are taxable in Singapore.
Your employer will send your employment income details (including all allowances paid to you while you are working outside Singapore) to IRAS electronically.
The tax on overseas allowances will be remitted if applications for tax remission are approved by Ministry of Finance (MOF).
Tax treatment outside Singapore
Generally, your gains from such employment will not be taxed outside Singapore.
Your gains from such employment will be exempted from tax in the foreign country where you worked if there is:
In event that your gains from such employment are taxed in foreign country, you may apply for double taxation relief or tax remission in Singapore, to avoid being taxed twice on the same income.
Please approach your employer for clarification on application for tax remission.
- You work in Singapore for a foreign employer.
How to report
You need to declare the taxable overseas income under 'employment income' and 'other income' (whichever applicable) in your tax form.
Find out more about how to submit your tax form.