Individual Income Tax

Updated Tax Treaty Calculator - Dependent Services.

Applicable to employees, of non-resident employers, who exercised employment in Singapore and claiming tax exemption under the Avoidance of Double Taxation Agreement.  

COVID-19 Support Measures

Information on the following measures is now available:

1. Income tax treatment of COVID-19 related payouts to businesses and individuals

2. Point-to-point support package

3. Property owners’ obligations to pass the property tax rebate on to tenants

4. Exemption for employment benefits for accommodation, food, transport and daily living expenses

Bulk Extension for Filing of Individual Income Tax Returns for YA 2020

 - In light of the global COVID-19 outbreak, the bulk extension date will be extended to 15 Aug 2020.

New initiative for tax agents to manage individual clients' income tax matters via myTax Portal 

- to replace the application form with an online version.

Eligible employees of an investment holding company would be able to enjoy the tax concession on the contributions made by the employer, provided that their employers did not claim deduction for such contributions under section 14(1)(e) of Income Tax Act.  In this regard, the employer is required to state upfront in its tax return for the relevant year of assessment that it is not claiming any deduction for such contributions under section 14(1)(e).

As an employer, if the investment holding company did not claim any deduction for its contributions made on or after 1 Jan 2014 to an overseas non-mandatory pension / provident fund under section 14(1)(e), its eligible NOR employee who did not claim Tax Exemption of Employer's Contribution to Non-Mandatory Overseas Pension Fund or Social Security Scheme for YA 2015 to 2019, can submit the NOR application form for our review and re-assessment.

Taxation of Income from Overseas Employment  

Pursuant to IRAS’ review, the administrative concession which allows Singaporeans to opt to be assessed as non-residents for tax purposes is no longer relevant in furthering its objective of removing the disincentive for Singaporeans to work abroad.

The administrative concession will thus be removed with effect from YA 2021 (i.e. calendar year 2020). This means that the last YA of which any taxpayer may elect to be assessed as non-resident is YA 2020.

Per Diem Allowance

- Update on the acceptable rates for 2019

Not Ordinarily Resident (NOR) Scheme

Content updated to:

- remove the requirement that employer's contributions made on or after 1 Jan 2014 must be charged or recharged to a Singapore entity, in order for Tax Exemption of Employer's Contribution to Non-Mandatory Overseas Pension Fund or Social Security Scheme concession to apply

Please note that NOR individuals who did not claim Tax Exemption of Employer's Contribution to Non-Mandatory Overseas Pension Fund or Social Security Scheme for YA 2017 and YA 2018, can submit the NOR application form for our review and re-assessment.

 Per Diem Allowance

- Update on the acceptable rates for 2018

Not Ordinarily Resident (NOR) Scheme 

To provide clarification on the tax treatment of the Tax Exemption of Employer's Contribution to Non-Mandatory Overseas Pension Fund or Social Security Scheme concession for the following:

i)  Employer's contributions are not charged/recharged to any Singapore entity;

ii) Employees of foreign companies (including Representative Office) not registered in Singapore.

Concessionary Tax Treatment on Overseas Pension / Provident Fund Contributions

To provide clarification on the tax treatment for employees of foreign companies (including Representative Office) not registered in Singapore

 Per Diem Allowance

- Update on the acceptable rates for 2017

2.      Form IR21 Explanatory Notes

To provide clarification on tax clearance requirement for overseas posting as follows:

• For overseas posting on or after 1 Jan 2016 which meet the conditions specified, tax clearance is not required on the basis that the services rendered overseas are incidental to the employment in Singapore. Thus, tax clearance is still required for cases where the services rendered overseas are not incidental to the Singapore employment.
• New FAQ added to clarify on the taxability of the employee's income during the period of his overseas posting and the employer's filing requirement for IR8A. 

Application for Not Ordinarily Resident (NOR) Scheme

- NOR application form updated to include application checklist.

  2.      IR21 and Explanatory Notes

- Tax Clearance is not required for employees who are away for overseas posting provided the following conditions are met:
   i)   Period away from Singapore does not exceed six months;
   ii)  Employee would return to Singapore to work for the same employer and continue to hold valid
        work pass under the same employer during the period that the employee is away from Singapore;
   iii) Singapore employer continues to pay the employee’s salary during the said period

1. When is Tax Clearance not required 
2. Tax Clearance Calculator
3. Form IR21 and Explanatory Notes

Contents updated to: 
i. Provide clarifications on the scenarios where tax clearance is not required
ii.Reflect the change in the income threshold from $20,000 to $21,000 for cases where tax clearance is not required

Changing Filing Details 

Content updated to include the following information:
Amended Form IR21 should not be filed if the employer is only making changes to the amount of monies withheld.  For such cases, the employer should email the details to IRAS via myTax Mail at myTax Portal. 

2. e-Tax Clearance FAQ

Content updated to reflect the changes made to the following e-Filing pages:
i.  File IR21 page
ii. File IR21 – Main Form
iii. Online Notification page

 Concessionary Tax Treatment on Overseas Pension / Provident Fund Contributions 

- To provide clarification on the tax treatment for employees of Singapore representative office

 Not Ordinarily Resident (NOR) Scheme 

- To provide clarification on the tax treatment of the Tax Exemption of Employer's Contribution to Non-Mandatory Overseas Pension Fund or Social Security Scheme concession for employees of representative offices

- To specify the period of revocation of resident status given under the three-year administrative concession

 Per Diem Allowance

- Update on the acceptable rates for 2016

 Working for Foreign Employers

- To provide information on the revised tax treatment for amounts received by employees travelling into Singapore on or after 1 Jan 2016 for business purpose.

Remuneration of Non-Resident Director

- To provide information on the revised tax treatment for amounts received by employees travelling into Singapore on or after 1 Jan 2016 for business purpose.

Per Diem Allowance

- To reflect the acceptable rate of per diem allowance for employees travelling into Singapore on or after 1 Jan 2016 for business purpose.

 Working for Foreign Employers

- To provide clarification on the count for the number of employment days in Singapore for employees travelling into Singapore for business purpose.

 Not Ordinarily Resident (NOR) Scheme

-The update relates to the signatory requirement for Appendices A and B of the NOR application form

Claim for tax treaty exemption for dependent personal services rendered by employee

- Tax treaty Calculator for Personal Services Rendered By Employees has been included in the  Individuals Tax Form

Notification by Employer of an Employee's Cessation of Employment or Departure from Singapore (Form IR21) 
- Added new checkboxes and reasons under Section D, item 16 and item 18; and 
- Re-labelled the checkboxes under Section F, item 4(i)