The page explains what a board director is and how to determine their tax residency for withholding tax purposes.

Definition of a board director

A board director is a member of a company's board of directors, which is responsible for overseeing the company's management and making important decisions on behalf of the company.

How about an Executive Director

A board director can also be an executive director, such as a Chief Executive Officer (CEO) or Chairman, and be involved in the daily operation of business.

If a non-resident director receives payment as an executive director, it is not subject to withholding tax. Refer to Overview of Withholding Tax (WHT) for more information. For tax obligations of foreigners in executive positions in Singapore, refer to Foreigners Working in Singapore.

How to determine tax residency for board director

Physical presence in Singapore in the year preceding the Year of Assessment (YA)Residency statusIs withholding tax required?
Less than 183 daysNon-ResidentYes, payments received by a non-resident board director will be subject to withholding tax. Refer to Tax Obligations for Non-Resident Director
183 days or moreResidentNo. If withholding tax has been paid to IRAS, refer to Tax Refund for Resident Director


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.