Singapore is an attractive destination for expats. It’s well-known for its security, cosmopolitan culture, diverse cuisine, and excellent business opportunities. Favorable tax policies also make the island nation ideal for workers on every end of the pay scale, especially high-income earners. With this up-to-date guide from Remitly, you’ll understand Singapore’s tax system and the process of filing taxes as a non-resident here.
Quick facts about Singapore’s tax system
Singapore has a dynamic tax system offering some of the most competitive tax rates on employment income worldwide. Working and doing business here attracts several taxes, such as the following:
- Individual Income Tax (IIT)
- Corporate Tax, including the Auto Inclusion Scheme (AIS)
- Goods & Services Tax
- Withholding Tax
However, as a non-resident, you’re only liable for taxes affecting personal income or your ability to work and earn in the country. This means you don’t have to pay taxes on income from overseas employment. Other types of income, like director’s fees, fall under a different tax treatment.
Singapore doesn’t tax capital gains, dividends, or investments. Foreign-sourced income is also subject to tax exemption unless in special circumstances. The Inland Revenue Authority of Singapore (IRAS) has more information about each tax obligation on its official website.
Who needs to file taxes as a non-resident in Singapore?
In Singapore, you’re required to file income tax if you fall into any of these categories:
- You received a total remuneration of more than S$22,000 SGD throughout the year of assessment;
- You are self-employed and generated net profits over S$6,000 SGD in the previous year; or
- You’re a non-resident professional who earned remuneration working in Singapore during the preceding year.
Do I qualify as a non-resident individual taxpayer?
Resident and non-resident tax rates are considerably different, so understanding your tax residency status is essential. Singapore citizens and permanent residents enjoy progressive tax rates and a wide range of incentives and reliefs, significantly reducing their tax bill. They also contribute directly to the Central Provident Fund (CPF) and Supplementary Retirement Scheme (SRS).
However, the tax treatment is a little different for non-residents. Singapore defines non-residents as skilled foreign professionals contracted for service in a resident company. They fall into several groups for tax purposes:
- Public entertainers and qualified consultants, trainers, and coaches;
- Academic or foreign speakers conducting workshops or seminars;
- Foreign experts invited to share their technical expertise by government agencies, statutory boards, or private organizations;
- Advocates and attorneys qualified as King’s Counsels;
- Non-resident individuals who work for a foreign firm; and
- Digital nomads and self-employed workers who meet the set requirements.
Tax rates and deductions for non-residents
Non-resident taxpayers typically have a higher tax bill, calculated at a flat rate of 22% for all income earned in Singapore. You’ll pay this rate on your income tax return through the Individual Income Tax (IIT) and Withholding Tax, no matter what you earn.
However, you may be eligible for certain tax deductions, such as:
- Employment expenses, such as travel or entertainment.
- Personal deductions, including mortgages, charitable contributions, subscription fees, spousal relief, and medical expenses (levied as a percentage of the chargeable income).
- Personal reliefs on earned income or qualifying children or adults with handicaps
- Business deductions and losses
- Parenthood tax rebates
If your home country has a tax treaty with Singapore, you may be eligible for lower personal income tax rates, more deductions, or specific exemptions to avoid double taxation. Check your status here.
What documents do you need to file taxes in Singapore?
Singapore is known for its simple, straightforward tax filing process. Before filing your individual income tax declaration, you’ll need to prepare these required documents:
- Your Singpass/Singpass Foreign User Account (SFA)
- Proof of adequate income in your bank account
- Form IR8A for non-Auto Inclusion Scheme (AIS) participants
- Details of your dependents for new relief claims
- Details of rental and other income, if any
- Business registration, or partnership tax reference numbers if you’re a partner in a business or self-employed
- A duly filled tax form, or Form M. For business partners and the self-employed, use Form B to declare your Singapore income tax.
How to file taxes as a non-resident in Singapore
Singapore allows non-resident taxpayers to use e-filing via the myTax Portal. It’s easier, faster, and grants you 24/7 access to your tax account. You’ll even enjoy longer filing periods with this method.
IRAS will help you figure out your taxable income and total tax liability. Afterward, you can start the seven-step process to e-filing your income tax in Singapore:
- Step 1: Get your Singpass or Singpass Foreign User Account (SFA).
- Step 2: Prepare the required documents for the relevant tax year.
- Step 3: Log in to the myTax Portal with your Singpass/SFA.
- Step 4: Verify your details in the Income, Deductions, and Relief Statement (IDRS) on Form M. IRAS will pre-fill certain sections of your IDRS, but you must verify that the form is filled completely and accurately.
- Step 5: Provide proof of income and declare other sources of income.
- Step 6: Update existing tax reliefs and deductions in the spaces provided. Remove any pre-filled reliefs that you may no longer qualify for.
- Step 7: Receive an acknowledgment receipt showing that you’ve successfully completed the process.
Key tax deadlines to remember
E-filing gives you a bigger window to file and submit your income taxes to the IRAS. In this case, the filing deadline is April 18.
However, you can also file your income tax on paper, as long as you make the submission before April 15.
Common mistakes to avoid when filing taxes in Singapore
E-filing reduces the chances of making errors while filing your taxes in Singapore. However, these are some common mistakes to look out for:
- Avoid leaving your myTax Portal idle for more than 20 minutes. If you do, you will get a ‘timeout’ error and may have to start the session all over again.
- Avoid sending supporting documents such as invoices or receipts with your Form M or Form B unless asked to do so.
- Don’t leave information unverified. Although IRAS pre-fills certain sections of your submission form on the myTax Portal, you should confirm that all provided information is timely and correct.
- If you need to make changes after e-filing, you can re-file your taxes once within seven days of your previous submission or before April 18. But if you need to make further changes to your tax filing, you can always contact IRAS via email.
Where to get help with filing taxes as a non-resident
While the Singapore income tax filing process is pretty simple, you might face time or other constraints during tax season. Don’t worry—numerous tax consultants and firms are ready to help.
But if you prefer to go your own way, the IRAS has provided several tax support resources to ease the process, including tax assistance and government helplines. They are:
- Help links on the myTax Portal
- An official quick PDF guide for e-filers
- Official e-filing video guides
- Live chat and chatbot assistance on the official IRAS website
FAQ
Do non-residents pay tax in Singapore?
Everyone who earns an income in Singapore must pay taxes, including residents and non-residents. The only difference between these two taxpayer categories is the tax type, tax treatment, tax obligations, and tax deductions that apply. However, both aren’t requires to pay taxes on overseas income.
How is tax residency determined in Singapore?
There are several avenues to becoming a Singaporean tax resident. You could live or work in Singapore for a continuous period of 3 years. Another route is acquiring either the Singapore Employment Pass or the EntrePass, then residing in Singapore for at least 183 days every calendar year. Alternatively, you could participate in the Global Investor Program (GIP) to gain permanent residency.
What is the personal tax rate in Singapore?
Residents and non-residents pay different tax rates on chargeable income. The former enjoy a progressive tax rate between 0% to 22%, depending on their income bracket. Non-residents, however, are subject to a flat tax rate of 22%.
How can I pay income tax in Singapore?
As a non-resident in Singapore, you can file your taxes either online or on paper.
What is the due date for filing personal income tax in Singapore?
The deadline for e-filing is April 18, while paper filings should be submitted before April 15.