What is taxable, what is not

(A) 15% Withholding tax treatment

You are subject to a final withholding tax of 15% on the GROSS income/fee derived from services performed in Singapore.

Under the 15% withholding tax treatment:

• Gross income refers to both cash and non-cash payments and includes:
  
   a) accommodation provided/reimbursed by payer
   b) airfare provided/reimbursed by payer
   c) allowance
   d) per diem
   e) transport (e.g. airport transfers) and meals provided/reimbursed by payer
   
  
  
• No deduction is allowed against the GROSS income/fees for any expenses incurred;
• The administrative concession of not taxing accommodation provided for not more than 60 days in any calendar year, and cost of airfare, does not apply to the NRP
• We will not send tax bill to you as the payer has accounted for the withholding tax; and
• The tax exemption for short-term employment of 60 days or less in a calendar year does not apply to you.

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(B) Option to be taxed at 20% of net income

You can opt to be taxed on the net income (i.e. gross income less allowable expenses) at the non-resident rate of 20% instead of 15% of the gross income.

Under the option:

• The cost of accommodation (excluding value of food) provided for up to 60 days in a calendar year and cost of airfare, borne by the payer, are not taxable as an administrative concession. Where the cost of accommodation is borne for say, 70 days in a calendar year, the cost of the entire stay of 70 days is taxable.
• Only expenses which are wholly and exclusively incurred by you in the production of the Singapore-sourced income, and which are not reimbursed by the payer are tax deductible. As a concession, cost of accommodation (excluding value of food) for up to 60 days in a calendar year and cost of airfare incurred by you are deductible. Where the cost of accommodation is incurred for say, 70 days in a calendar year, the cost of the entire stay of 70 days is not deductible.
• Private expenses (e.g. value of food and ground transfers from & to airport) and expenses incurred to put you in a position to earn the income (e.g. transport expenses incurred from hotel to venue of service and back) are not deductible.
• We will not send tax bill to you as the payer has accounted for the withholding tax. 

How to exercise the option to be taxed at 20% of net income

The option is irrevocable and must be exercised:

• by the non-resident professional / the payer by completing and endorsing on section IV of the Form IR37C (72KB)
•  up-front, that is, before or at the same time as when the tax is withheld, and remitted to IRAS or within 45 days from the date of payment of income after tax at 15% is remitted to IRAS
• on a per engagement basis. All income and benefits derived from the same engagement are subject to withholding tax at 20% ;