Inland Revenue Authority of Singapore (IRAS) is the tax authority of Singapore. It has, for tax purposes, combine individuals and companies and categorized them into Tax residents or Non-residents. Tax residents and non-residents pay different tax rates in Singapore.
What is a Non-resident?
IRAS considers any of the following a non-resident for tax purposes:
- You are not a Singapore; or
- You are not a Singapore Permanent Resident; or
- You are a foreigner who has stayed or worked in Singapore for less than 183 days in the previous year of the Year of Assessment.
A non-resident will be taxed only on income earned in Singapore at a flat rate of 15% or. Claim for personal relief is not allowed but tax exemption is permitted on remittances made to Singapore.
Sample of Tax Rates for Non-residents
|
Nature of Income
|
Tax Rate |
|---|---|
| Employee remuneration (for those who stay more than 60 but less than 183 days). | 15% or resident rates whichever is higher. |
| Employee remuneration (for those who stay less than 60 days) | Exempt |
| Interest, commission or fee payment associated with loans | 15% |
| Royalty or copyright to use scientific, technical, industrial or commercial knowledge or information | 10% |
| Management fees | 20% |
| Non-resident directors’ remuneration | 20% |
| Paid to resident of a country which has a tax treaty with Singapore | 2% |
| Paid to a resident of a country which has no tax treaty with Singapore | 2% |
| Paid to a resident of a tax haven country | 3% |
| Proceeds from sale of any real property by a non-resident property trader | 15% |
Related Topics
FAQ’s on Singapore Non-ResidentSingapore Corporate Tax
Singapore Personal Income Tax
Singapore Non-resident Tax
Singapore Withholding Tax