Individual Tax in Singapore (Foreigners)
In Singapore, anyone considered as tax resident will be required to pay tax. Those who are considered as a tax resident include Singapore citizens, Singapore Permanent Resident (SPR), or a foreigner who has either worked or stayed in the city-state for the span of 183 days over the previous year of assessment (YA). Foreigners who have accrued or derived income in Singapore during the aforementioned period will be required to pay taxes. An important thing that you must take note is that the number of days you stay or work in Singapore includes weekends and public holidays.
If you are employed for 60 days or less.
If you are employed for 60 days or less in Singapore, your income will be exempt from tax. However, this rule does not apply if you are a director of a company, a public entertainer or exercising a profession in Singapore. Professionals include foreign experts, foreign speakers, queen’s counsels, consultants, trainers, coaches etc.
If you are in Singapore for 61 to 182 days.
If you are in Singapore for 61 to 182 days, your employment income is taxed at 15% or progressive resident rates. This will depend on which yields in a higher tax amount. If you have a company incorporated in Singapore and you are working as a director, the director’s fees and other income are taxed at the prevailing rate of 20%. In this case, you will not be entitled to tax reliefs.
If you are in Singapore for 183 days or more.
If you are in Singapore for 183 days or more, you will be regarded as a tax resident. You will be taxed on all income that you have earned in Singapore. After deduction of tax reliefs, your income will be taxed at progressive resident rates which are the same rates to Singaporeans and Singapore Permanent Residents. If you are in Singapore for at least 183 days straddling two calendar years, you will be regarded as a tax resident for two years.