All income derived from Singapore is liable to tax. Generally, overseas income received in Singapore by an individual is not taxable and need not be declared in his/her Income Tax Return. This includes overseas income paid into a Singapore bank account. Overseas income is taxable in Singapore if:
Should your gains from your overseas employment be taxed in a foreign country, you may apply for double taxation relief, to avoid being taxed twice on the same income.
Individuals are either “resident” or “non-resident” in Singapore tax purposes. Generally, a person is resident if he or she is physically present or exercises employment in Singapore at least 183 days in a calendar year or continuous period of at least 183 days straddling two years or continuously for three consecutive years.
Regional representatives based in Singapore and employed by the representative office of an overseas company may be taxed concessionally on income pro-rated based on days spent in Singapore provided certain requirements are met. However, benefit-in-kind provided in Singapore are fully taxable.
Income derived from short-term employment of 60 days or less is exempted from tax.
60 days rule does not apply to a director of a company, a public entertainer or exercising a profession in Singapore. Professionals include foreign experts, foreign speakers, queen’s counsels, consultants, trainers, coaches etc.
When a foreigner’s contract for work is about to end or decide to work for another company or plan to leave Singapore for more than 3 months, the employer must inform Inland Revenue Authority of Singapore (“IRAS”). To ensure the foreigner pay all taxes before departure from Singapore, the employer is required to withhold payment of all monies (including salary, bonus, overtime pay, leave pay, allowances, gratuities, lump-sum payments, etc.) due to you from the day you gave notification of your intention to leave the job or depart from Singapore.