Taxable overseas income
Overseas income is taxable in Singapore if:
1. It is received through partnerships in Singapore.
2. Your overseas employment is incidental to your Singapore employment (i.e. you are required to travel overseas as part of your job requirements).
Example 1: Regional sales manager employed by a Singapore company
You are a regional sales manager employed by a Singapore company. As part of your job responsibilities, you travel overseas frequently to oversee operations in other countries/regions. Your employment income is fully taxable in Singapore since your work overseas is incidental to your Singapore employment.
3. You have a trade/business in Singapore and you are carrying on a trade/business overseas which is incidental to your trade carried out in Singapore.
4. You are employed overseas on behalf of the Singapore Government.
Tax treatment in Singapore for overseas employment on behalf of the Singapore Government
As a Singapore Citizen or tax resident in Singapore, your 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 for overseas employment on behalf of the Singapore Government
Generally, your gains from such employment overseas will not be taxed in the foreign country/region if:
- There is a Double Taxation Agreement (DTA) between Singapore and the foreign country/region; or
- There is a provision for reciprocal exemption by Singapore and the foreign governments.
Please approach your employer for clarification on the application for tax remission for Overseas Cost of Living Allowances.
Reporting overseas income
For overseas income which is taxable, you must declare the income under 'Employment Income' (if your employer is not under the Auto-Inclusion Scheme), 'Trade Income' or 'Other Income' (whichever is applicable) in your Income Tax Return.
Should your gains from your overseas employment be taxed in the foreign country/region, you may apply for double taxation relief, to avoid being taxed twice on the same income.
For details, please refer to how to file tax.