However, your employment income is exempt from tax if you are here on short-term employment. See Table 1 for a summary of the tax implications.
TABLE 1 - Tax Implications at a Glance |
||
Employment Period in Singapore |
Resident Status |
Tax
Implications |
60 days or less | Non-Resident | Short-term employment income is exempt from tax.* |
More than 60 days but less than 183 days | Non-Resident | Employment income is taxed at 15% or resident rates, whichever gives rise to higher tax. |
183 days or more | Resident | All income is taxed from 0% to 22% from the Year of Assessment 2003. |
TABLE 2 |
|
YearPeriod | Number of days |
1
(1.11.2000 to
31.12.2000)
|
61 |
2
(1.1.2001 to
31.12.2001)
|
365 |
3
(1.1.2002 to
28.2.2002)
|
59 |
As a tax resident, you will be
taxed on all income earned in
Singapore and any overseas
income that is brought into
Singapore. You will also be
given personal reliefs and your
income will be taxed at
graduated rates from 0% to 22%
for the Year of Assessment 2003.
See Table 3.
TABLE 3 - Tax Rates for Resident Individuals |
|||
Chargeable Income ($) |
Rates |
Tax Payable($) |
|
On the first | 20 000 |
0%
|
0.00 |
On the next | 10 000 | 4% | 400.00 |
On the first | 30 000 | 400.00 | |
On the next | 10 000 | 6% | 600.00 |
On the first | 40 000 | 1 000.00 | |
On the next | 40 000 | 9% | 3 600.00 |
On the first | 80 000 | 4 600.00 | |
On the next | 80 000 | 15% | 12 000.00 |
On the first | 160 000 | 16 600.00 | |
On the next | 160 000 | 19% | 30 400.00 |
On the first | 320 000 | 47 000.00 | |
Above | 320 000 | 22% |
Non-Resident Individual
You will be regarded as a
non-resident if you have been in
Singapore for less than 183 days
in a calendar year.
As a non-resident, you will only
be taxed on all income earned in
Singapore. You will not be given
personal reliefs and your
employment income will be taxed
at a flat rate of 15% or the
resident rates for the Year of
Assessment 2003 (shown in Table
3), depending on which gives a
higher tax. See Table 4 for an
example. For director's fees and
income other than employment,
they will be taxed at a flat
rate of 22% for the Year of
Assessment 2003.
TABLE 4 - Tax Computation for a
Non-Resident for the Year of
Assessment 2003.
FAQ on
Singapore Tax
Q1. If
my Singapore income is being
taxed in my own country, do I
still need to pay tax in
Singapore?
If your home country has a tax
treaty with Singapore, it may
protect you from being taxed
twice on the same income. This
depends on the provision of the
tax treaty. You can get a list
of Singapore's tax treaties with
other countries, available at
Tax Treaties.
Q2. When
do I need to send in my
Singapore Income Tax Form?
Usually, we will send an income
tax form to you at your mailing
address by 31 March of each
year. You will then have to fill
in and return the form to IRAS
by 15 April of the same year.
Q3. If
I were to make CPF
contributions, will the
contributions be tax deductible?
No. Foreigners (other than
Singapore Permanent Residents)
are no longer required to make
CPF contributions under CPF
rules. Hence, your voluntary CPF
contributions will not be tax
deductible and your employer's
contributions to CPF (if any)
will be taxed in your hands.
Q4. If I
choose to make CPF contributions
voluntarily and withdraw the
amount subsequently upon
cessation of employment or
departure from Singapore, will I
be taxed on the amount
withdrawn?
You will not be taxed on the
amount withdrawn as you are not
required to make CPF
contributions under CPF rules
(see Q3).
Q5. Does
my employer need to inform IRAS
if I cease employment with the
company?
Yes, your employer needs to seek
tax clearance by:
• informing IRAS at least one
month before you cease
employment or leave Singapore;
and
• withholding any monies due to
you until tax clearance is given
or 30 days after we have
received your employer's
notification, whichever is
earlier.
However if you are a Singapore
Permanent Resident and you are
merely changing jobs in
Singapore, your employer does
not have to seek tax clearance
unless you are leaving Singapore
permanently.
Q6. What
if the amount of money withheld
by my employer is not enough to
pay the tax that I owed?
You should arrange to pay the
remaining amount that you owe.
Otherwise, IRAS may appoint your
bank or CPF Board as agent,
under Section 57 of the Income
Tax Act, to recover the tax from
you. We may also prevent you
from leaving Singapore by
issuing you a stop order
certificate. In such a case, you
will need a release letter from
IRAS before you can leave
Singapore.