Taxable income is income earned by a non-resident director that is subject to withholding tax. Taxable income includes both cash and non-cash payments.
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Taxable Income

Director's remuneration refers to both cash and non-cash payments and includes:

See also Understanding the Tax Treatment.



As a concession, airfare paid by employers for directors to attend board meetings is not taxable.

Revised Tax Treatment for Directors Travelling into Singapore On or After 1 January 2016 for Business Purpose

 

  1. The following payments made by your employer are not taxable:

    • Accommodation
    • Travelling and entertainment (which have been expended for business purpose)

  2. Introduction of an IRAS acceptable rate for per diem allowances for directors travelling into Singapore for business purpose

    • Per diem allowance would not be taxable unless it is in excess of the acceptable rate. For directors who travel into Singapore for business purpose, the acceptable rate for 2020 and 2021 respectively is $140 per day.
    • The acceptable rates determined by IRAS are strictly for Income Tax purpose and are reviewed yearly. The rates do not determine the amount of per diem allowance that an employer wishes to pay its directors.

FAQs

 

#1 Director's Fees and Physical Presence

#2 Director's Fees Not Yet Remitted

#3 Withholding Tax and Apportionment of Remuneration

#4 Director's Remuneration Paid from Overseas

#5 Director's Fees and Tax Treaties

The non-resident director is a resident of a country which has a tax treaty with Singapore. If he receives directors' fees from a company resident in Singapore, is he liable to tax in Singapore?

Whether he is liable to tax in Singapore would depend on the provisions in the tax treaty. Generally, director's fees derived from a company which is a tax resident in Singapore is taxable here.

#6 Foreign Company and Singapore Subsidiary

A director was paid director's fees by a foreign company which has a subsidiary in Singapore. He attended a meeting in Singapore. Is he liable to tax in Singapore?

No, he will not be liable to Singapore income tax as the director's fees are paid by a foreign company with no presence in Singapore. The foreign company with a subsidiary in Singapore is not considered to have a presence here.

#7 Foreign Company and Singapore Branch

A director was paid director's fees by a foreign company which has a branch in Singapore. He attended a meeting in Singapore. Is he liable to tax in Singapore?

Yes, he will be liable to Singapore income tax on the director's fees paid by the foreign company as it is considered to have a presence in Singapore through a branch in Singapore

#8 Taxation of Director's Fees

Which date is considered to be the date of payment for director’s fees?

The date of payment is the date they are voted and approved at the company's Annual General Meeting.