Income Tax on Foreign Individuals in Singapore

A、Tax implicationsonresidents and non-residents

No of Days employed in SG	Resident/Non-Resident	Tax Implications	Tax Reliefs
At least 183 days in a year	Resident	Income is taxed at progressive resident rates (refer to table below)	Yes
61-182 days in a year	Non-Resident	Employment income earned in Singapore will be taxed at a flat rate of 15% or the progressive resident rates (refer to table below), whichever results in a higher tax amount  Director's fees and other income such as rent earned in or derived from Singapore will be taxed at the prevailing rate of 20% (22% from Year of Assessment 2017)	No
60 days or less in a year	Non-Resident	Short-term employment income earned in Singapore is exempt from tax This rule does not apply if 1) You are a director of a company, a public entertainer or a professional in Singapore; 2) Your absences from Singapore are incidental to your Singapore employment. In this case, your total income (including income for services rendered outside Singapore) is taxable in full in Singapore.  Director's fees and other income are taxed at the prevailing rate of 20% (22% from Year of Assessment 2017).	No

Taxrelief: Income Tax Act Part X section 39

In the caseofan individual resident in Singapore in the year of assessment, there shallbeallowed a deduction, in respect of earned income, which shall be —

a.in thecase of anindividual not falling within any other paragraph, the sum of $1,000or theamount of the earned income;

b. withoutprejudice to anydeduction allowable under paragraph (c) or (d),inthe case of an individual who, in the year immediately preceding the yearofassessment, was totally blind or suffering from any physical ormentaldisability which permanently and severely restricted his capacity forwork, thesum of $4,000 or the amount of the earned income;

c. in thecase of anindividual who, at any time in the year immediately preceding theyear ofassessment, was above 55 years of age but was not above 60 years ofage, the sum of $6,000 or theamount of the earned income; and

d. in thecase of anindividual who, at any time in the year immediately preceding theyear ofassessment, was above 60 years of age, the sum of $8,000 or theamount ofearned income,

whicheveris less.

B、Resident Tax Rates

Income Tax Act Schedule 2

RATES OF TAX ONCHARGEABLE INCOME OF

AN INDIVIDUAL OR AHINDU JOINT FAMILY

FOR YEAR OFASSESSMENT 2012 AND OF ANINDIVIDUAL FOR YEAR OF ASSESSMENT 2013 AND

SUBSEQUENT YEARS OFASSESSMENT

	Chargeable Income	Rate of Tax
For every dollar of the first	$ 20,000	Nil
For every dollar of the next	$ 10,000	2%
For every dollar of the next	$ 10,000	3.5%
For every dollar of the next	$ 40,000	7%
For every dollar of the next	$ 40,000	11.5%
For every dollar of the next	$ 40,000	15%
For every dollar of the next	$ 40,000	17%
For every dollar of the next	$120,000	18%
For every dollar exceeding	$320,000	20%.

ChargeableIncome: Income Tax Act Part Xsection 38

Thechargeable income of any person for anyyear of assessment shall be theremainder of his assessable income for that yearafter the reliefs anddeductions allowed in this Part have been made.

AssessableIncome: Income Tax Act Part IXsection 37

Theassessable income of any person from allsources chargeable with tax under thisAct for any year of assessment shall bethe remainder of his statutory incomefor that year after the deductions allowedin this Part have been made.

C、Illustration (Assume1 SGD= 4.5RMB)

a. Monthly salary of 50,000 RMB,approximatelyequivalent to 133,333 SGD

Estimated Tax Payable in SG/year= 9,950 SGD

b. Monthly salary of 80,000 RMB,approximatelyequivalent to 213,333 SGD

Estimated Tax Payable inSG/year= 23,150 SGD

(Note: Income tax rebate of max 1000 SGD isonly applicable in yearof assessment 2015, so not applicable now)

D、Tax Filling

Income is assessed on a precedingyearbasis, ending 31 December. You must fileYourIncome Tax Return by 15 Apr of the following year. You canusuallyexpect to receive the income tax bills by September.

E、Comparison of Tax Computationbetween China and Singapore

Situation	Country	Annual Income	Annual Tax Implication	Country with Lower Tax	Difference in RMB
1	China	600,000 RMB	134,340 RMB	Singapore	89,565
1	Singapore	133,333 SGD	9,950 SGD (about 44,775 RMB)	Singapore	89,565
2	China	960,000 RMB	255,240 RMB	Singapore	121,065
2	Singapore	213,333 SGD	23,150 SGD (about 104,175 RMB)	Singapore	121,065

Assumptions:

1) 1 SGD= 4.5 RMB

2) Noemployment expenses and personalreliefs are considered

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Income Tax on Foreign Individuals in Singapore

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