International double taxation results when the same income is being taxed twice; once in the country where the income arises (Country of Source) and another in the country where the income is received (Country of Residence).
To mitigate the effects of double taxation, a country may enter into an Agreement for the Avoidance of Double Taxation (DTA) with other countries. If your home country has a DTA or tax treaty with Singapore, it may protect you from being taxed twice on the same income. This depends on the provisions of the tax treaty.
Dependent Personal Services
The tax treaty article for ‘Dependent Personal Services’ will provide the source rules for income from employment. The source is where the employment is exercised or where the services are provided.
However, in the case of short-term employment and to facilitate the movement of qualified personnel, exemption of tax is granted by the country of source. These conditions apply in most tax treaties.
- The recipient is present in the source country not exceeding a certain specified period (most treaties provide for a period of not more than 183 days. You may wish to refer to the specific treaty for the time period); and
- The services are rendered for, or on behalf of a person, who is a resident of the country of residence; and
- The remuneration is not borne by a permanent establishment, or fixed base which the employer has in the country of source.
How To Claim Exemption
Please use our Tax Treaty Calculator for Personal Services Rendered by Employees (213KB) to check if you are eligible for tax treaty exemption. If you are eligible for tax treaty exemption, you should submit the Claim for Tax Treaty Exemption and Certificate of Residence to IRAS.