As a foreigner working in Singapore, you are liable to pay personal income tax. This taxable income rate will differ depending on your tax residency in Singapore.

You will be considered a tax resident in Singapore under the following circumstances:

  1. Stay of at least 183 days in a year – Tax resident for that year.
  2. Stay of at least 183 days for a continuous period over 2 years and the employment period must straddle 2 calendar years – Tax resident for both years.
  3. Stay of 3 consecutive years – Tax resident for all 3 years.

Tax residents are taxed at progressive tax rates and they can claim tax reliefs where applicable.

The progressive resident tax rates starts from 0% on the first S$20,000 up to 22% on amount in excess of S$320,000. (annual income)

For YA 2019, a personal tax rebate of 50% of tax payable, up to a maximum of S$200 is granted to tax residents.

Besides being able to claim tax reliefs, foreigners may also save on tax if they make donations to approved charitable organisations or are from a native country with a double taxation treaty with Singapore.

On the other hand, non-residents are taxed at a flat rate of 15% or resident rates whichever is higher. Non-residents are also not entitled to tax reliefs.

Director’s fees and other income are taxed at a prevailing rate of 22%.

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Do take take note that employment benefits such as stock options will also form part of the taxable employment income.

However, overseas income derived outside Singapore, Singapore dividends and bank interests are not taxable.

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The timeline to file person income tax differs from that of a corporate income tax. Personal income tax is assessed on a preceding year basis ending 31st December. The deadline to file personal income tax is by the 15th of April.

 

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