Income Tax Guide for Foreigners in Singapore 2025

Singapore attracts thousands of foreigners each year to work, start businesses, or manage regional operations. Along with these opportunities comes the responsibility of understanding how income tax works.

Whether you’re here on a short-term contract or planning to stay longer, knowing the tax rules will help you avoid surprises, manage your finances better, and even save money.

This guide explains everything foreigners need to know about Singapore income tax in 2025, including:

✅ How tax residency is determined

✅ The latest tax rates for 2025

✅ Reliefs and deductions you may qualify for

✅ How Double Taxation Agreements (DTAs) can help

✅ Step-by-step filing through IRAS myTax Portal

Let’s get started.

Yes. If you earn income in Singapore, you will generally be subject to tax. Singapore uses a territorial system, meaning only income earned in Singapore is taxable. Overseas income is not taxed unless it is received in Singapore under certain conditions.

How much tax you pay depends on whether you are considered a tax resident or a non-resident. Residents are taxed at progressive rates and may claim reliefs, while non-residents are taxed differently, usually at a flat rate.

There is one key exemption: if you work in Singapore for 60 days or less in a calendar year, your employment income is exempt. This does not apply if you are a company director, public entertainer, or professional, such as a consultant or trainer.

For foreigners, your tax residency is based on how long you stay or work in the country, not your nationality.

You are considered a tax resident for a Year of Assessment (YA) if:

• You have stayed or worked in Singapore for at least 183 days in the previous calendar year; or
• You have worked continuously for 3 consecutive years; or
• You have worked in Singapore for at least two consecutive years, with a combined stay of at least 183 days. This rule applies only to employees — not company directors, public entertainers, or professionals such as consultants.

In addition, if you are issued a work pass valid for at least one year, you will generally be treated as a tax resident. However, your status will be reviewed when you leave Singapore, based on the actual number of days you stayed. If your total stay is fewer than 183 days, you will be regarded as a non-resident.

Being a tax resident matters because you are eligible for progressive tax rates, personal reliefs, and Double Taxation Agreements (DTAs). Non-resident individuals, on the other hand, face flat tax rates and cannot claim most reliefs.

Tax Resident Rates in Singapore

Whether you’re a Singaporean or a foreigner, 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 contributing more. For tax residents, personal income tax rates range from 0% to 24%.

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

A non-resident is anyone who does not meet the criteria of a Singapore tax resident. If you are 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.
• Employment income: Taxed at 15% or the resident progressive rates — whichever is higher.
• Other income: Director’s fees, consultant’s fees, rental income, royalties, and similar earnings are taxed at a flat 24%.
• Deductions: You may deduct approved business expenses and donations, but you cannot claim personal reliefs.

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

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

• Employment income: Salary, bonuses, allowances, director’s fees, commissions, and benefits-in-kind (such as housing or car benefits).
• Stock options & share plans: Gains from exercising stock options or receiving shares as part of your employment package.
• Self-employment or freelance income: Profits from running a business, trade, profession, or gig work (e.g. consulting, ride-hailing, delivery apps).
• Rental income: Income from property in Singapore, after deducting expenses such as repairs, property tax, and mortgage interest.
• Overseas income: Income brought into Singapore may be taxable, depending on IRAS rules.
• Digital tokens: Cryptocurrency or other tokens received as payment are taxed like regular income.

For details, please refer to the IRAS’s section "what is taxable, what is not".

While many reliefs are designed for Singapore citizens and permanent residents, some can also apply to foreigners who are treated as tax residents.

Here are a few key reliefs that foreigners may qualify for:

• Earned Income Relief: Based on your age and employment status.
• Spouse / Child Relief: If you are supporting a spouse or children.
• Parent Relief: If you support elderly parents or grandparents living in Singapore.
• Course Fees Relief: For approved courses that improve your skills.
• CPF Contributions Relief: For Singapore Permanent Residents who contribute voluntarily to CPF.
• Approved Donations: Cash or in-kind donations to approved charities.

Please note that you should check with the Inland Revenue Authority of Singapore (IRAS) for detailed requirements.

If you’re working in Singapore or earning income from abroad, one common concern is being taxed twice, once in Singapore and again in your home country. To avoid this, Singapore has signed Double Taxation Agreements (DTAs) with many countries. These treaties set clear rules on how cross-border income should be taxed.

Key Benefits for Foreigners

✅Avoiding double taxation: Income that has already been taxed in one country can usually be exempted or credited against tax in the other.
✅Reduced tax rates: Some DTAs allow lower withholding tax rates on income such as dividends, interest, and royalties.
✅Clearer residency status: If you split your time between Singapore and another country, a DTA helps determine where you are considered a tax resident.
✅Business profits: Foreign businesses are usually only taxed in Singapore if they have a permanent establishment, such as a branch office or local subsidiary.

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.

Filing your income tax return in Singapore is a simple process. The deadline for both paper submissions and e-filing is 18 April 2025. To file your tax return, you’ll need a few key documents, including:

• Singpass/Singpass Foreign user Account (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).

Steps to File a Tax Return in Singapore

Once you’re ready, follow these steps to file your taxes online.

1. Look out for the IRAS notice: Each March, IRAS will notify you if you need to file a return.
2. Gather your documents: This may include your Form IR8A (from your employer), records of other income (such as rental or consultancy fees), and proof of deductions or donations.
3. Log in to myTax Portal: Use your Singpass or SFA to access the system.
4. Review pre-filled details: Employers often submit salary data directly, but you should double-check for accuracy.
5. Add other income and claims: Include freelance earnings, rental income, or reliefs you qualify for (if you’re a tax resident).
6. Submit your return: File online or paper by 18 April 2025.
7. Check your Notice of Assessment (NOA): IRAS will issue this later, showing your final tax payable.
8. Pay your tax bill: Settle the amount shown on your NOA within 30 days using GIRO, internet banking, AXS, or other approved payment methods.

Singapore’s tax system is straightforward, but your obligations depend on whether you are a tax resident or non-resident. Residents enjoy progressive rates and reliefs, while non-residents face flat rates with limited benefits. DTAs further protect foreigners from being taxed twice.

By knowing your residency status, meeting deadlines, and making use of available reliefs, you can manage your tax obligations in Singapore confidently and avoid surprises.