Tax-residency of Foreigners in Singapore

In general, your tax residency status will determine the amount of tax liability you will incur. The amount of taxes a foreigner pays in Singapore is affected by the cut-off periods of 60 days and 183 days. For example, a foreigner who is issued a one-year visa will be immediately deemed a Singapore tax resident. 

In Singapore, tax residents are those who live or work in the country —

• For at least 183 days in a calendar year; or
• For at least 183 days for a continuous period covering two years (this is applicable to foreign employees who arrived in Singapore from January 1, 2007, but excludes directors of a company, public entertainers or professionals); or
• Continuously for three consecutive years.

Your tax residency status will be reviewed during tax clearance when you cease your employment based on the tax residency rules. If your stay in Singapore is less than 183 days, you will be regarded as a non-resident with regards to the Singapore income tax.

Let’s understand this in detail.

At least 183 days

Under the city-state’s tax residency rules, a foreigner is regarded as a tax resident if he or she stays or works in Singapore for at least 183 days in a calendar year. Notably, the number of counted days includes weekends and public holidays, and any temporary absence from work for overseas vacation or official work. 

So the tax implications will be:

Period of stay (including work) in Singapore	Tax-resident status	Tax liability
at least 183 days in a year	yes	income taxed at progressive resident rates
at least 183 days for a continuous period over two years	yes	income taxed at progressive resident rates
at least 183 days for a continuous period over three consecutive years	yes	income taxed at progressive resident rates

While the foreigner can claim tax reliefs (discussed below) when filing up the Form B1 applicable to tax-residents, his or her foreign-sourced income brought into Singapore is tax-exempt.

If You Are in Singapore for At Least 183 Days over Two Years

If you stay or work in Singapore for a continuous period of at least 183 days spanning across two years, you will be considered as a tax resident for these two years under the two-year administrative concession.

If You Are in Singapore for Three Consecutive Years

Should you stay or work in Singapore for three consecutive years, you will be classified as a tax resident for all three years, as reflected in the three-year administrative concession. This rule is applicable to you even if you are in the country for fewer than 183 days in the first and third year.

The progressive income tax rates vary from 0 to 22 percent. Residents who make $320,000 or more will need to pay for the topmost rate (22 percent). 

Seek the services of qualified tax professionals to file your personal tax correctly and in compliance with Singapore law.

The prevailing Singapore income tax rates (from the 2017 Year of Assessment (YA) onwards) are as follows:

chargeable income	rate (%)	gross tax payable ($)
First $20,000 Next $10,000	0 2	0 200
First $30,000 Next $10,000	– 3.50	200 350
First $40,000 Next $40,000	– 7	550 2,800
First $80,000 Next $40,000	– 11.5	3,350 4,600
First $120,000 Next $ 40,000	– 15	7,950 6,000
First $160,000 Next $40,000	– 18	13,950  7,200
First $200,000 Next $40,000	– 19	21,150 7,600
First $240,000 Next $40,000	– 19.5	28,750 7,800
First $280,000 Next $40,000	– 20	36,550 8,000
First $320,000 Above $320,000	– 22	44,550