Singapore – IRAS, Tax Residency of Individual 

All income earned in Singapore is subject to tax. You must declare all sources of income you have earned in your Income Tax Return. 

The amount of income tax you need to pay depends on: 

1. how much you earn in Singapore; and 
2. whether you are a tax resident or non-resident for income tax purposes. 

Tax residents 

You are a tax resident for a particular Year of Assessment if you are a: 

1. Singapore Citizen or Singapore Permanent Resident (SPR) who normally resides in Singapore except for temporary absences; or 
2. Foreigner who has stayed/worked in Singapore:
   • or at least 183 days in the previous calendar year; or 
   • continuously for 3 consecutive years; or 
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. This applies to foreign employees who entered Singapore but excludes directors of a company, public entertainers or professionals. 

Foreigners issued with a work pass that is valid for at least 1 year will also be treated as a tax resident. However, your tax residency status will be reviewed at the point of tax clearance when you cease your employment based on the tax residency rules. If your stay in Singapore is less than 183 days, you will be regarded as a non-resident. 

Tax treatment of tax residents 

As a tax resident: 

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.  

Non-residents 

A non-resident of Singapore for tax purposes, is an individual who does not qualify as a tax resident of Singapore. 

Tax treatment of non-residents 

1. You will be taxed on all income earned in Singapore; 
2. You may claim deductions on expenses and donations to save tax. However, you are not eligible to claim personal reliefs; 
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 22%.