According to the Inland Revenue Authority of Singapore, foreigners (Individuals) staying and working in Singapore are required to pay tax. Your tax liability will depend on your tax residency status. Here is a simple guide to Singapore personal income tax for foreigners.
| Period Of Stay (Inclusive Of Work) In Singapore | Tax Residency Status |
| 183 Days Or More | Tax Resident |
| Less Than 183 Days | Non Resident |
| 60 Days Or Less | Non Resident |
Let us dive deeper into each category and their respective tax implications.
183 Days Or More (Tax Resident)
As a tax resident, you must take note of the following:
- You will be taxed on all income earned in Singapore and any foreign-sourced income that was brought into Singapore prior to 1 Jan 2004.
- You may claim tax reliefs on your income, after which you will be taxed at progressive resident rates.
- Your foreign-sourced income (with the exception of those received through partnerships in Singapore) brought into Singapore on or after 1 Jan 2004 is tax-exempt.
Other than the counting of 183 days, the period of stay and employment will also be taken into account to determine your tax residency.
| Period Of Stay (Inclusive Of Work) In Singapore | Tax Residency Status |
| At least 183 days in a year. | Tax resident for that year. |
| Three consecutive years. | Tax resident for all 3 years |
| At least 183 days for a continuous period over two years. | Tax resident for both years. |
When filing income tax, residents are required to fill in Form B1.
Less Than 183 Days (Non-Resident)
As a non-resident, you will only be taxed on all income earned in Singapore and you not be entitled to any tax reliefs.
The tax on your employment income is at a flat rate of 15% or the progressive resident rates, whichever the higher. Other income such as rental income and director fees earned in Singapore shall be tax at the prevailing rate of 22%.
As a non-resident, you are required to fill in Form M when filing income tax.
60 Days Or Less (Non-Resident)
Your short term employment income is exempt from tax if you are a non-resident and are employed in Singapore for 60 days or less in a year.
However, do note that this does not apply if you are a director of a company, a public entertainer or a professional in Singapore.
This rule also shall not apply if your absence is a result of your obligations due to your Singapore employment. The total income earned (overseas and in Singapore) shall be taxable in full in Singapore.
Note 1: Foreigners issued with a work pass valid for at least one year will automatically be treated as a tax resident. Tax residency will be reviewed again upon cessation of employment.
Note 2: The number of days of employment in Singapore includes weekends and public holidays. Any temporary absence (e.g. vacation) or incidental to your employment (e.g. business trips) is still counted in the total days of employment for the purpose of determining your tax residency status.