Tax Residency Rules for Expats: Are You Considered a Singapore Tax Resident?

Singapore is often seen as a lucrative market for expats to make a fortune for themselves. Yet, along with the opportunities, there are tax obligations that have to be fulfilled as well. With a complex tax residency rule, it is important to be aware of the specific details and rules expats are under.

Criteria for expats to be a Singapore Tax Resident:

1. 1. 1. Foreigner who has stayed/worked in Singapore for at least 183 days in the previous calendar year
      2. Foreigner who has stayed/worked in Singapore continuously for 3 consecutive years (does not need to have worked for at least 183 days every year)
      3. Foreigner who has worked in Singapore for a continuous period straddling 2 calendar years and your total period of stay is at least 183 days

Tax treatment of tax residents

1. 1. 1. You will be taxed on all income earned in Singapore
      2. Your foreign-sourced income (with the exception of those received through partnerships in Singapore) brought into Singapore is tax-exempt
      3. You may claim deductions on expenses, donations and personal reliefs

Tax treatment of non-tax residents

1. 1. 1. You will be taxed on all income earned in Singapore
      2. You generally cannot claim personal reliefs or donations as a non-resident. Deductions are not available against employment income and are only very limited in situations involving trade/business income assessed at resident rates.
      3. Your employment income is taxed at the higher of:
         • • • Flat rate of 15%; or
             • The progressive resident tax rate
      4. Director’s fees, consultant’s fees and all other income are generally taxed at 24%