Income Tax Guide for Foreigners in Singapore 2024

Q: When is the deadline for paying taxes in Singapore?

You will need to file your tax returns by 15 April. The due date for payment of tax will be shown in your notice of assessment (NOA) after filing your returns.

Q: I am a foreigner working in Singapore. Am I eligible for tax relief, tax deductions, and tax incentives?

Yes, if you are a foreigner in Singapore and qualify as a tax resident, you will be eligible for tax relief schemes.

Key Takeaways

You qualify as a tax resident if you live in Singapore or have been physically present or employed there for at least 183 days within a calendar year.

Tax return filing for the previous year ends on 15 April.

Tax residents pay a progressive tax rate of 0% to 24%, whereas non-residents will usually pay a flat rate of 15% and, in some cases, 24%.

Singapore is an attractive destination for foreigners, not only for its vibrant economy but also for its favourable tax system. If you're a foreigner working or living in Singapore, understanding the country’s income tax regulations is crucial for compliance and efficient financial planning. This Income Tax Guide for Foreigners in Singapore 2024 provides a comprehensive overview of tax obligations, residency status, tax rates, filing deadlines, and key deductions. Whether you're a new expat or have been residing in Singapore for some time, this guide will help you navigate the tax system smoothly and maximise the available benefits.

As a Foreigner, Do You Need to Pay Tax in Singapore?

Singapore's tax system depends on tax residency. You qualify as a tax resident if you live in Singapore or have been physically present or employed there for at least 183 days within a calendar year. Tax residency status is determined based on the year before the Year of Assessment (YA), and it’s not dependent on citizenship but rather your presence or Singapore employment. Both Singapore citizens and Singapore permanent residents are considered tax residents.

Even partial days in Singapore count as full days for determining tax residency, except when you’re merely in transit without clearing immigration. The tax rules also consider continuous employment that spans two calendar years. If a non-resident works in Singapore over two calendar years and stays for a total of at least 183 days, they are treated as tax residents for both years.

By being a Singapore tax resident, you will be eligible for benefits such as lower tax rates compared to your home country, tax reliefs, and also benefit from double taxation agreeme

Relevant: Read more about Singapore Tax System and Rates.

Tax Resident Rates in Singapore

Whether you’re a foreigner or a Singapore citizen, if you are considered a tax resident, you share the same tax rates. Singapore’s tax system follows a progressive structure, where the more you earn, the higher the percentage of income tax you pay. This ensures a fair distribution of the tax burden, with those who have a greater ability to pay to contribute more. For tax residents, personal income tax rates range from 0% to 22%.

To provide a clearer picture of how this works, here’s a breakdown of the individual income tax rates in Singapore:

Chargeable Income	Income Tax Rate (%)	Gross Tax Payable
First SGD 20,000 Next SGD 10,000	0 2	SGD 0 SGD 200
First SGD 30,000 Next SGD 10,000	- 3.50	SGD 200 SGD 350
First SGD 40,000 Next SGD 40,000	- 7	SGD 550 SGD 2,800
First SGD 80,000 Next SGD 40,000	- 11.5	SGD 3,350 SGD 4,600
First SGD 120,000 Next SGD 40,000	- 15	SGD 7,950 SGD 6,000
First SGD 200,000 Next SGD 40,000	- 19	SGD 21,150 SGD 7,600
First SGD 240,000 Next SGD 40,000	- 19.5	SGD 28,750 SGD 7,800
First SGD 280,000 Next SGD 40,000	- 20	SGD 36,550 SGD 8,000
First SGD 320,000 Next SGD 180,000	- 22	SGD 44,550 SGD 39,600
First SGD 500,000 Next SGD 500,000	- 23	SGD 84,150 SGD 115,000
First SGD 1,000,000 Over SGD 1,000,000	- 24	SGD 199,150

As an example, if your taxable income is SGD 25,000, you will not be taxed for the first SGD 20,000 and only taxed for SGD 5,000 at a 2% rate. This means that you will have to pay SDGD 100 as your tax amount.

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Non-Resident Tax Rates

non-resident tax rate. A non-resident for tax purposes in Singapore is someone who does not meet the criteria to be considered a tax resident.

As a non-resident, here are the key points regarding your tax obligations:

Tax on Singapore-sourced Income: You will be taxed on all income earned in Singapore.
Deductions and Donations: You may claim deductions on eligible expenses and donations to reduce your tax, but you are not entitled to personal relief.
Employment Income: Your employment income will be taxed at the higher of:
‎ ‎ ‎ ‎• A flat rate of 15%, or
‎ ‎ ‎ ‎• The progressive resident tax rate.
‎ ‎ ‎ ‎
Other Income: Director’s fees, consultant’s fees, and other forms of income are taxed at a flat rate of 24%.

Non-residents can estimate their tax liabilities using the available tax calculator by the Inland Revenue Authority of Singapore (IRAS).

What is Considered Taxable Income in Singapore?

In Singapore, taxable income includes a wide range of earnings. Here’s a breakdown of what is considered taxable income:

Employment Income:
‎ ‎ ‎ ‎• Salary, wages, bonuses, and commissions.
‎ ‎ ‎ ‎• Allowances such as housing, transport, and other benefits provided by the employer.
‎ ‎ ‎ ‎• Stock options and shares given as part of remuneration.
‎ ‎ ‎ ‎
Self-Employment/Business Income:
‎ ‎ ‎ ‎• Profits or gains from any trade, business, profession, or vocation.
‎ ‎ ‎ ‎
Investment Income:
‎ ‎ ‎ ‎• Rental income from property in Singapore.
‎ ‎ ‎ ‎• Interest and dividends, although certain dividends (such as Singapore dividends paid by companies under the one-tier system) are exempt from tax.
‎ ‎ ‎ ‎
Other Income:
‎ ‎ ‎ ‎• Income from part-time jobs, freelance work, or any casual employment.
‎ ‎ ‎ ‎

Filing Your Income Tax Return

Filing your income tax return in Singapore is a simple process. The deadline for both paper submissions and e-filing is April 15. To file your tax return, you’ll need a few key documents, including:

Singpass/SFA login credentials
Form IR8A (for non-Auto-Inclusion Scheme participants)
Dependent details (for claiming new reliefs)
Rental and other income information
Business or partnership tax reference numbers (if self-employed)

Taxpayers can e-file their returns through the myTax Portal using Singpass or SFA. If you need to make changes after e-filing, you can re-file once within 7 days of your initial submission or before April 18, whichever comes first. For any additional amendments, you must contact the Inland Revenue Authority of Singapore (IRAS) via email.

For paper filing, tax forms are sent between February and March. If you don't receive yours by March 15, contact IRAS to request one. The first page of the tax return must be signed and mailed to IRAS in the provided return envelope by April 15.

Income Tax Relief and Tax Exemption for Foreigners in Singapore

Foreigners working in Singapore may be eligible for certain income tax reliefs based on specific conditions. While personal reliefs are generally more accessible to Singapore citizens and permanent residents, some reliefs may apply to foreigners as well. Here are a few key reliefs that foreigners may qualify for:

Course Fees Relief

Foreigners who pursue work-related courses to upgrade their skills may claim Course Fees Relief. This relief is capped at SGD 5,500 per year and is applicable if the course is relevant to the individual’s current employment.

Parent Relief / Handicapped Parent Relief

If you are supporting a parent (who is residing in Singapore) and meet the criteria, you may qualify for Parent Relief or Handicapped Parent Relief.

Spouse Relief

Foreigners who are supporting a spouse (who is dependent and living with them in Singapore) may claim Spouse Relief, provided the spouse does not have an annual income exceeding a specified threshold.

Child Relief

If you are a foreigner with children living in Singapore, you may be eligible for Qualifying Child Relief (QCR) or Handicapped Child Relief (HCR). However, the child must meet residency or educational requirements.

Life Insurance Relief

Foreigners may also qualify for Life Insurance Relief if their total Central Provident Fund (CPF) contributions and life insurance premiums constitute more than 7% of their annual income.

Earned Income Relief

Earned Income Relief in Singapore is a tax relief provided to individuals who earn income from employment or self-employment.

Limitations

Unlike Singapore citizens or permanent residents, foreigners may not be eligible for certain personal reliefs like the CPF contributions relief or the NSman relief, unless they contribute to CPF or serve in the National Service.

Eligibility for these reliefs depends on your residency status and specific circumstances, so it's important to check with the Inland Revenue Authority of Singapore (IRAS) for detailed requirements.

Double Taxation Agreement

A Double Taxation Agreement (DTA) is a treaty between two countries designed to prevent individuals and businesses from being taxed on the same income in both countries. Singapore has signed DTAs with many countries to help foreigners and Singapore residents avoid double taxation on their income earned abroad or from foreign entities.

Key Benefits for Foreigners

Avoiding Double Taxation: Foreigners working in Singapore or have a foreign sourced income can avoid being taxed twice—once in their home country and once in Singapore. The DTA ensures that the foreign tax paid can be credited against the Singapore tax due, or vice versa.
Reduced Tax Rates: Some DTAs provide for reduced withholding tax rates on certain types of income such as dividends, interest, and royalties. This means that if you're a foreigner receiving income from such sources in Singapore, you may benefit from lower tax rates than the standard non-resident rates.
Tax Residency Status: DTAs can help clarify an individual’s tax residency status when they live or work in more than one country. By establishing clear rules, DTAs prevent individuals from being considered tax residents in both countries and facing double taxation.
Relief for Business Profits: Foreign businesses operating in Singapore under a DTA are often only taxed on their business profits if they have a permanent establishment (such as a branch or office) in Singapore. This can limit tax liability for international companies with minimal operations in the country.

Types of Income Covered

Income from Employment: DTAs typically define the tax treatment for foreign workers or professionals who earn income in Singapore or their home country.
Dividends, Interest, Royalties: These types of income are often subject to reduced withholding tax rates under a DTA.
Capital Gains: Some DTAs also address the taxation of capital gains from the sale of assets.

Conclusion

In conclusion, Singapore offers a clear and structured tax system for foreigners, with varying tax rates and reliefs depending on residency status. Understanding whether you qualify as a tax resident or non-resident is crucial in determining your tax liabilities.

As a tax resident, you benefit from progressive tax rates and certain reliefs, while non-resident individuals are generally taxed at flat rates. Additionally, the Double Taxation Agreements (DTAs) Singapore has with many countries help mitigate the risk of double taxation for foreign individuals.

By staying informed about key deadlines, filing requirements, and available tax reliefs, foreigners can effectively manage their tax obligations in Singapore. The Inland Revenue Authority of Singapore (IRAS) provides ample resources, ensuring that both residents and non-residents can comply with tax regulations and make the most of available tax benefits.