Guide To Personal Income Tax For Foreigners Working In Singapore 2021

If you are a foreigner living and working in Singapore, you need to fulfil your legal liability for personal income tax. The rate taxable will differ, dependent on your tax residency status.

Who is a tax resident?

Under the following circumstances, you are a tax resident of Singapore:

  1. Staying in Singapore for at least 183 days of a year – Tax resident for that particular year.
  2. Staying in Singapore of at least 183 days for a continuous period over 2 years and the employment period must be for 2 calendar years – Tax resident for both years.
  3. Stayin Singapore for consecutively 3 years – Tax resident for all 3 years.

Tax residents will be allowed to claim tax reliefs where applicable and they are taxed at progressive rates.

The tax resident will be taxed at a rate beginning from 0% on the first S$20,000, subsequently up to 22% on the amount above S$320,000. (annually)

For the YA 2019, there is a personal rebate of 50% for individual tax residents, up to a maximum of S$200.

Besides claiming tax reliefs, you can save on tax as a foreigner if you make donations to any approved charities or your native country has a double taxation treaty with Singapore.

What about non-residents?

For non-residents, they will be taxed at a flat rate of 15% or resident rates, whichever is higher. Non-residents do not enjoy any tax reliefs.

The prevailing rate of 22% applies for director’s fees and other forms of income.

Stock options as a form of employment benefit will also be part of the taxable employment income.

Do take note that overseas income derived overseas, Singapore-derived dividends and bank interests are not taxable.

The deadline to file for your personal income tax is different from that of a corporate income tax. Personal income tax will be assessed on a preceding year basis ending 31st December. The deadline to file personal income tax is by the 15th of April annually.


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