You will be considered as a non-resident if you are a foreigner who stayed or worked in Singapore for less than 183 days in the tax year.
For Foreigners working in Singapore, the following conditions are also applicable for the taxability of their income in Singapore:
Non-resident individuals are subject to tax on all Singapore-sourced income unless the income is exempt from tax, such as income from a deposit in an approved Singapore bank. Foreign income received in Singapore by a non-resident individual is exempted from tax.
The income of a non-resident individual in Singapore is taxed at:
The NOR scheme extends favourable tax treatment to qualifying individuals for a period of five years.
In order to qualify for the NOR scheme, you have to fulfill the following criteria:
If your application is successful, you will be given the NOR status for five consecutive YAs, starting from the YA in which you first meet the criteria.
If you are given the NOR status, you can enjoy one or more of the following tax concessions during the NOR period as long as you are a tax resident in the respective YA:
Under this concession, you will not be taxed on the portion of your Singapore employment income that corresponds to the number of days you have spent outside Singapore for business reasons, as a resident Singapore employee.
Income Not Apportionable
Under this concession, if you are a resident Singapore employee, tax exemption will be given to you on any contribution made by your employer to any non-mandatory overseas contribution scheme. The amount of exemption is subject to a cap.
A non-resident individual who is employed in Singapore is needed to submit a LOG from a local bank or an established limited company in Singapore to cover his / her estimated tax for the coming Year of Assessment. If the LOG is not provided to the IRAS, an advance assessment will be issued.
If you are planning to leave Singapore or changing to another job within Singapore, your current employer needs to notify IRAS and confirm that you have settled all your taxes before you leave. This procedure is known as 'Tax Clearance'. If you have any existing stock options or awards on hand which have yet to be exercised or vested, you will be deemed to have derived gains from the stock or awards at the point of tax clearance.
It is mandatory for every taxpayer to file the annual personal income tax returns to IRAS. All completed forms must be submitted to Singapore tax department by the 15th of April.
This is regardless of the amount of your annual income for the previous year. Even if you do not have any income in previous years, you still need to declare '0' income in your tax form and submit by 15 Apr.
After filing your personal income tax returns, you will receive your Notice of Assessment(NOA) or tax bill by September. The tax bill will indicate the amount of tax you have to pay. If you disagree with your tax amount, you need to inform tax department within 30 days from the date of your tax bill and state your reasons for objection.
You need to pay the full amount of tax within 30 days of receiving your Notice of Assessment. This is regardless of whether you have informed tax authority about your objection. If your tax remains outstanding after 30 days, a penalty will be imposed.
All business decisions today have tax implications, and it is important for a company to manage their income tax requirement efficiently. Our tax professionals will keep you abreast of developments that may affect your business. We collaborate closely with you to identify and implement tax strategies that work best within your organization.
We can also assist you in structuring your executives; remuneration packages that will offer both your company and your staff the maximum tax benefits. For individuals and family held enterprises, we can help you in organizing your financial affairs in the most tax efficient manner.