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Overseas Income Received in Singapore

Generally, overseas income received in Singapore by an individual is not taxable and need not be declared in his/her Income Tax Return. This includes overseas income paid into a Singapore bank account.

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Taxable Overseas Income

Overseas income is taxable in Singapore if:

a) It is received through partnerships in Singapore; or

b) Your overseas employment is incidental to your Singapore employment (i.e. as part of your job requirements, you are required to travel overseas).

Example: Regional Sales Manager Employed by a Singapore Company

You are a regional sales manager employed by a Singapore company. You are required to travel overseas frequently to oversee operations in regional countries. Your employment income is fully taxable in Singapore since your work overseas is incidental to your Singapore employment.

c) Employed Overseas on Behalf of the Singapore Government

Tax Treatment in Singapore

As a Singapore citizen or tax resident in Singapore, the income from your employment exercised outside Singapore on behalf of the Singapore government is deemed to be derived from Singapore.

All the gains from your employment including overseas allowances are taxable in Singapore.

Your employer will send your employment income details (including allowances paid to you while you are working outside Singapore) to IRAS.

The tax on overseas allowances will be remitted if the application for tax remission was approved by the Minister of Finance.

Tax Treatment Outside Singapore

Generally, your gains from such employment overseas will not be taxed in the foreign country if:

(i)   There is a Double Taxation Agreement (DTA) between Singapore and the foreign country; or

(ii)   There is a provision for reciprocal exemption by Singapore and foreign governments.

Should the gains from your employment be taxed in the 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 for Overseas Cost of Living Allowances (OCLA).

d) You have a trade/business in Singapore and you are carrying on a trade/business overseas which is incidental to your Singapore trade.

Should your gains from your overseas employment be taxed in the foreign country, you may apply for double taxation relief, to avoid being taxed twice on the same income.

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How to Report

For overseas income which is taxable, you have to declare the income under 'employment income' (if your employer is not under the AIS)*, 'trade income' or 'other income' (whichever is applicable) in your tax return.

*To find out if your employer is under the AIS.

For details, please refer to:

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