Singapore has progressive personal income tax rates. The country imposes tax on all income occurred in or derived from Singapore and remits all foreign-sourced income.
Singapore residents who are employed overseas for a period of six months in any calendar year can choose to be represented as non-residents for the year of assessment following the year of overseas employment. Income derived from sources outside of Singapore is only taxable if it is received in the country by a resident individual through a partnership in the country.
Personal Income Tax for Residents
Individual residents in Singapore are subjected to tax on a progressive resident tax rate. If an individual resident is earning an annual income of $22,000 SGD, they are liable to file personal tax returns. Residents whose annual income is below $22,000 SGD do not need to pay taxes. However, if the Singapore tax authority has asked you to file a tax return, you will need to comply.
Personal Income Tax for Non-Residents
If you have lived and worked in Singapore for less than 183 days in the tax year, you are considered a non-resident and are not liable to pay tax. Non-residents will be taxed as below:
- If you are in Singapore for short-term employment for 60 days or less in a year, your employment income is exempt from tax. However, this exemption does not apply to company directors, public entertainers, or professionals including foreign experts, foreign, speakers, queen’s counsel, trainers, coaches, etc.
- You will be taxed on your income if you are in Singapore for 61-182 days a year. You can claim expenses and donations to save tax, but you are not eligible to claim personal relief. Non-residents employment income is taxed at a rate of 15% or the progressive resident tax rate, whichever is a higher tax amount.
- Director’s fees and remuneration, consultant fees and other incomes are taxed at a rate of 15% to 22%.
Where Bluebox comes in?
Bluebox can help simplify the tax filing process and making it easier for you to follow along the compliance structure. With our expertise and assistance by your side, you can rest assured that your personal income tax filings will be on-point and timely.
Our personal tax filing services include:
- Registration of new taxpayers
- Identifying income, determining possible deductions and relief, and preparing and filing income tax return
- Request for deadline extension, if necessary
- Preparation of form IR8A/IR21 for employees
- Tax planning and consulting
- Tax compliance
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