Income Tax and Tax Residency Status
The amount of income tax that you have to pay depends on your tax residency status in Singapore.
You are regarded as a tax resident if:
| Period of Stay (inclusive of work) in Singapore | Tax Residency Status | Tax Implications |
|---|
At least 183 days in a year | Tax resident for that year | Income is taxed at progressive resident rates.
You may claim tax reliefs. |
At least 183 days for a continuous period over two years and the employment period must straddle two calendar years | Tax resident for both years | Income is taxed at progressive resident rates.
You may claim tax reliefs. |
Three consecutive years | Tax resident for all three years | Income is taxed at progressive resident rates.
You may claim tax reliefs. |
You will be regarded as a non-resident of Singapore for tax purposes if:
| Tax Residency 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% (22% from the Year of Assessment 2017).
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 , a public entertainer or a professional in Singapore; or
- 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.
Director's fees and other income are taxed at the prevailing rate of 20% (22% from the Year of Assessment 2017). You are not entitled to tax reliefs |
Resident and Non-Resident Tax Rates
Tax residents are taxed at progressive tax rates.
Non-residents are taxed at the flat rate of 15% or the resident rates whichever results in a higher tax amount on your employment income. Director's fees and other income are taxed at the prevailing rate of 20% (22% from the Year of Assessment 2017). Non-residents are not entitled to tax reliefs.
Filing Taxes
Income is assessed on a preceding year basis, ending 31 December. You must
file Your Income Tax Return
by 15 Apr of the following year (For YA 2020, filing deadline has extended to 31 May 2020). You can usually expect to receive the income tax bills by September.
What is Taxable and What is Not
Besides salaries and bonuses, employment benefits such as housing and stock options will also form part of your taxable employment income .
Overseas income derived outside Singapore, Singapore dividends and bank interest are tax exempt in Singapore.
Renting Out Your Property in Singapore
Any rent payments you receive when you rent out your property in Singapore are subject to income tax and must be declared in your income tax return. For more information, please refer to Rental Income and Expenses.
Ways to Save Tax
Updating Address and Contact Details
Please make sure that you give us your latest address so that we can send your tax bill to you.
You can update your address online by logging in to myTax Portal using SingPass or IRAS Unique Account.
Paying Taxes
Getting Tax Clearance
If you are about to leave Singapore or changing to another job within Singapore
, you must settle all your taxes. This process is known as tax clearance. For tax clearance, your current employer must notify IRAS and make sure you have paid all taxes before you cease employment with them.
If you still hold any existing stock options or awards on hand which have yet to be exercised or vested, you will be considered to have derived gains from the stock or awards at the point of tax clearance.
Need help on your assessment?
We have Online Calculators to help you do a quick assessment: