Singapore Non-Resident Taxation and Exemptions
Who is a Non-Resident?
You are considered a foreign non-resident if you are an individual exercising any profession or vocation in Singapore for less than 183 days in a year under a contract for service.
Non-Resident Tax Exemptions
As a non-resident, you will be exempted from paying income tax if you have been employed for 60 days or less in a calendar year. However, this rule does not apply if you are a director, public entertainer or exercising a profession in Singapore.
Non-residents will be taxed only on income earned in Singapore. They are unable to claim for personal relief.
Non-residents will be taxed on their employment income at a flat rate of 15% or the resident rates, depending on which gives rise to higher tax. For director's fees and income other than employment, they will be taxed at a flat rate of 20% from Year of Assessment 2005.
They are also exempted from tax on remittances made to Singapore.
Singapore Non Resident Tax Rates
Category
YA 2005 (%)
Employees Remuneration Stay in Singapore more than 60 days but less than 183 days Stay Less than 60 days
15.0 Exempt
Entertainer Income
15.0
Other Taxable Income
20.0
Capital Gains Tax
None
Royalty Note: *10% effective 1 Jan 2005
15.0 *
Copyright
2.0
Directors' Remuneration
20.0
Interest
15.0
Management Fees
20.0
Professional Fees
15.0
International Arbitrators Fees
0.0
FAQs Singapore Non-Resident Tax
Q: I am engaged by a foreign consulting firm to render my services in Singapore. Will my consultation fees be taxed in Singapore if the fees are paid to me outside Singapore?
A: Yes. You are liable to pay Singapore tax for the professional services rendered in Singapore. It does not matter where you are paid.
Q: I am invited by a government body/Ministry in Singapore to conduct seminars/workshops in Singapore. Is my income taxable?
A: You will be taxed on the income derived from Singapore unless it is exempted from tax.
Q: I am a visiting professional. Will I be exempt from tax if I render my services for not more than 60 days in the calendar year in Singapore?
A: The tax exemption for short-term employment of 60 days or less does not apply to visiting non-resident professionals who exercise their profession in Singapore. Only visiting non-resident professionals who are employees would qualify for the exemption.
Q: My engagement in Singapore as a visiting professional spreads over 5 months. My home country has a tax treaty with Singapore. Do I still need to pay tax in Singapore?
A: Whether you need to pay tax in Singapore would depend on the provisions of the tax treaty. For example, under the tax treaty between Singapore and United Kingdom, the income derived by you from Singapore will be tax exempt provided that you do not have a fixed base regularly available to you in Singapore for the purpose of performing your activities; or that you are not present in Singapore for not more than 183 days in any period of 12 months commencing or ending in the fiscal year concerned.
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