Singapore — Tax Residency & Territorial Taxation

|---| | Country | Singapore | | Tax system | Territorial — Singapore-sourced income only | | Capital gains tax | None — Singapore has no CGT | | Residency test | 183+ days physical presence in calendar year | | Resident individual top rate | 24% (marginal, from YA 2024) | | Non-resident rate | 15% flat on employment income or 22% (higher of) | | Primary legislation | Income Tax Act 1947 (Cap. 134) | | Tax authority | Inland Revenue Authority of Singapore (iras.gov.sg) | | Verified by | Pending — Singapore tax adviser sign-off required |

---

Section 2 — Tax Residency Tests

An individual is a Singapore tax resident for a Year of Assessment (YA) if:

1. 183+ days: Physically present in Singapore for 183 days or more during the preceding calendar year, OR

2. Employment: In continuous employment in Singapore for an uninterrupted period spanning 3 consecutive calendar years (including the immediate preceding year and following year), OR

3. Permanent resident: A Singapore Permanent Resident (PR) who has established a "permanent home" in Singapore

Key point: Singapore uses a calendar-year basis for presence, but tax is assessed in the following year (e.g. income earned Jan-Dec 2024 is assessed in YA 2025).

---

Section 3 — Territorial Taxation: The Key Feature

Singapore taxes on a source basis, not a worldwide basis. This means:

Income type	Taxed in Singapore?
Income from Singapore employment	Yes
Business income from Singapore	Yes
Dividends from Singapore companies (one-tier)	Exempt (already taxed at company level)
Foreign-source income (dividends, interest, profits) remitted to Singapore	Generally exempt (since 2004)
Capital gains	No CGT at all — see sg-zero-cgt
Rental income from Singapore property	Yes
Rental income from overseas property	Generally exempt (foreign-source)

Foreign income exemption: since 1 Jan 2004, foreign-sourced dividends, branch profits, and service income remitted to Singapore are exempt from tax, provided they were subject to tax in the source country (headline rate ≥ 15%).

---

Section 4 — Tax Rates: Resident vs Non-Resident

Resident rates (YA 2024+):

Chargeable income (SGD)	Rate
First 20,000	0%
20,001 – 30,000	2%
30,001 – 40,000	3.5%
40,001 – 80,000	7%
80,001 – 120,000	11.5%
120,001 – 160,000	15%
160,001 – 200,000	18%
200,001 – 240,000	19%
240,001 – 280,000	19.5%
280,001 – 320,000	20%
Above 320,000	24%

Non-resident rates:

• Employment income: 15% or progressive resident rates, whichever is higher
• Director fees: 24%
• Other income (interest, royalties): 24%

---

Section 5 — Key Employment Passes

Pass	Who for	Tax residency impact
Employment Pass (EP)	Foreign professionals, salary ≥ SGD 5,000/month	Resident if 183+ days
S Pass	Mid-level skills, salary ≥ SGD 3,150	Resident if 183+ days
Personalised Employment Pass	High earners (fixed 3 years)	Resident if 183+ days
EntrePass	Entrepreneurs	Resident if 183+ days
Permanent Resident	Indefinite	Resident once PR established

---

Section 6 — Sources

• Income Tax Act 1947, Sections 2, 10, 13 (exemptions)
• IRAS: iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/tax-residency-and-tax-rates

Working paper only. Have a qualified Singapore tax adviser review.