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

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. 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

There are a number of ways that you could save tax (conditions apply):

  1. You can get tax reliefs to offset against your assessable income if you are a tax resident.
  2. You may claim expenses incurred against your employment income; and enjoy tax deductions for approved charitable donations .
  3. Under the Not Ordinarily Resident (NOR) Scheme , you can enjoy either Time Apportionment of Singapore employment income or Tax Exemption of Employer's contributions to Overseas Pension Fund, or both.
  4. If you work for a foreign employer and need to travel overseas in the course of work, you may enjoy time apportionment of employment income under the Area Representative Scheme .
  5. Under the Avoidance of Double Taxation Treaties , you may be protected from being taxed twice in Singapore and your country of residence.

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 send your update online by logging in to myTax Portal . You will need a SingPass or IRAS PIN. If you do not have a SingPass or an IRAS PIN, you may apply for one on our website.

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.

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