Who is a non-resident director

The tax obligation of a non-resident company director is different from that of an executive director. It is important to distinguish the two roles

Non-Resident Directors

For tax purposes, a company director (or board director) is a member of the board of directors of a company.

A company director who is physically present in Singapore for less than 183 days in the year preceding the Year of Assessment (YA) is a non-resident director. The remuneration of a non-resident director is subject to withholding tax.

For details, please refer to Tax Obligations for Non-Resident Directors .

Executive Directors

A non-resident director may also take on an executive role (for example, Chief Executive Officer, Chairman and Managing Director) and is involved in the daily running of the business operations. The remuneration derived by a non-resident director in his capacity as an executive director is not subject to withholding tax.

To understand the tax obligations of foreigners in Singapore holding the position of executive director, please refer to foreigners working in Singapore .

  • Is payment of income made to an executive director subject to withholding tax?

    Withholding tax is applicable to payment of income made to a foreign individual in his capacity as a non-resident director .

    For payment of income made to the foreign individual in his capacity as an executive director , withholding tax is not applicable.

    Instead, the executive director must report his income in the income tax return . A tax bill will be issued to him for payment.

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