How Do I Know if I am a Tax Resident or a Non Resident?
You will be considered as a Tax Resident if you work in Singapore for 183 days or more.
You will be considered as a Non Resident if you work in Singapore for less than 183 days.
Concessions to 183 day rule
Under the two-year administrative concession, you will be regarded as a tax resident for two years if you stay or work in Singapore for a continuous period of at least 183 days. This concession applies to foreign employees (excludes directors of a company, public entertainers or professionals) who have entered Singapore from 1 Jan 2007.
Under the three-year administrative concession, if you stay or work in Singapore continuously for three consecutive years, you will be regarded as a tax resident for all the three years even though the number of days you are in Singapore is less than 183 days in the first and third year.
Difference between a Resident and a Non-Resident
A Tax Resident
A Tax Non-Resident
Your income, after deduction of tax reliefs, will be taxed at progressive resident rates.
Your foreign-sourced income (with the exception of those received through partnerships in Singapore) brought into Singapore on or after 01 Jan 2004 is tax exempt.
The applicable tax form for you is Form B1 (Income Tax Return for Residents).
You will only be taxed on all income earned in Singapore*.
Not entitled to tax reliefs.
Your employment income will be taxed at the higher of 15% or the progressive resident rates, 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%.
Form M (Income Tax Return for Non-Residents) is used for your tax filing return.