Income tax for foreigners in Singapore

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Setting up a company in Singapore requires business owners to have a great understanding of business laws and related tax regulations in Singapore. However, the vast amount of information can make it difficult for business owners to sift through to make the best choice.

In this article, Global Link Asia Consulting will help you to learn more about tax regulations and business laws in Singapore.

 

 

Main content

1. What are tax obligations for foreigners working in Singapore

2. What tax regulations do foreigners in Singapore need to know about?

2.1 For residents (183 days or more)

2.1 For non-resident individuals (less than 183 days)

3. What is the personal income tax rate for foreigners in Singapore?

1. What are tax obligations for foreigners working in Singapore?

Depending on the number of days foreigners work in Singapore, there will be 2 types of taxpayers in Singapore:  

  • Singapore resident (183 days or more)
  • Singapore non-resident (less than 183 days)

Tax residency status will be determined at the time the individual terminates his/her employment according to tax residency regulations. 

Note: The number of working days in Singapore includes public holidays and weekends. Temporary absences (overseas leave) or work absences (overseas business trips) are still counted toward the total number of working days to determine tax residency status. 

2. What tax regulations do foreigners in Singapore need to know about?

2.1 For residents (183 days or more)

Individuals who are:

  • Working in Singapore at least 183 days/year 
  • Working in Singapore for 3 consecutive years. Moreover, the individuals will be considered as a Singapore resident throughout the 3 years period even though their working time in Singapore is less than 183 days in the first and third years. 
  • Working in Singapore for at least 183 days in 2 consecutive years; will be considered as a Singapore resident in 2 years. This applies to foreigners entering Singapore from 1 January 2007, excluding those who are directors of a company, working in the entertainment sector, or professionals.

Residents will be subject to taxes from the following sources of income:

  • All income earned in Singapore.
  • Personal income after-tax exemptions and reductions will be taxed at a progressive tax rate (which leads to a higher tax payable).
  • Foreign-sourced income (except those received through a partner in Singapore) brought into Singapore after 1 January 2004 is tax exempted.

Fill out Form B1 (income tax return for tax residents) to pay personal income tax.

2.1 For non-resident individuals (less than 183 days)

Non-resident individuals will be subject to taxes from the following sources of income:

  • Total income earned from Singapore
  • No tax exemption or tax reduction
  • Subject to a flat tax rate of 15% or a progressive tax rate (whichever results in higher tax liability)
  • Directorship fees or rental-like incomes or income earned from Singapore will be taxed at a 22% tax rate
  • Fill out Form M (income tax return for non-resident individuals)

Individuals working in Singapore for less than 60 days/year will be exempt from tax. This does not apply to company directors, artists, or professionals. For the most updated information on tax treatments for residents and non-residents, please take a look via the Basic Guide for New Individual Taxpayers of IRAS.

3. What is the personal income tax rate for foreigners in Singapore?

The tax rate in Singapore is progressive. You can refer to the table below to estimate the tax payable for foreigners working in Singapore who are also residents in Singapore for tax purposes, take a look via IRAS to get more update news relating to income tax rate for foreigners.

Taxable income

Tax rate (%)

Tax payable ($)

First $20,000

Next $10,000

0

2

0

200

First $30,000

Next $10,000

-

3.50

200

350

First $40,000

Next $40,000

-

7

550

2,800

First $80,000

Next $40,000

-

11.5

3,350

4,600

First $120,000

Next $40,000

-

15

7,950

6,000

First $160,000

Next $40,000

-

18

13,950

7,200

First $200,000

Next $40,000

-

19

21,150

7,600

First $240,000

Next $40,000

-

19.5

28,750

7,800

First $280,000

Next $40,000

-

20

36,550

8,000

First $320,000

Next $320,000

-

22

44,550

For individuals/organizations who want to establish a company in Singapore and a long-term business in the lion island nation, understanding income tax for foreigners in Singapore is extremely necessary. However, please take note that this information may change over time over time. Depending on your specific situation, there might be other nuances. As such, seeking a business advisor who has extensive knowledge of the business sector in Singapore and has expertise in business regulations, corporate income tax in Singapore, is more necessary than ever. 

Global Links Asia Consulting Company - a consulting firm specializing in offering ONE-STOP solutions for every business at every level of your business development - is ready to support your business with the following services:

With our one-stop solutions, we pride ourselves on being a trustworthy partner - working directly with major notable banks such as OCBC, DBS, UOB, Standard Charter Bank, ANZ, etc and international payment gateways such as PayPal and many other partners. With many years of experience working in this industry and having supported many companies, Global Link Asia Consulting are confident to bring the best quality of our services to all clients.

Contact us now:

  • Vietnamese Hotline(+84) 0938 531 588 (Call/ Skype)
  • Singaporean Hotline: (+65) 3163 4102 (Call)
  • Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

This article was written by Global Link Asia Consulting Pte. Ltd. and was first published on https://www.globallinkconsulting.sg/ on 16th September 2021. Its copyright belongs to Global Link Asia Consulting Pte. Ltd. All rights reserved. You may not, except with our express written permission, copy, modify, commercially distribute or exploit the content.

 
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