Personal income tax for expats (resident vs non-resident) — Costs and fees breakdown
Little Big Employment Agency (EA Licence 19C9790) works with a panel of corporate and employment law firms; this article is general information, not legal advice.
Personal income tax for expats in Singapore depends primarily on tax residency. Under the Income Tax Act 1947, an individual is a tax resident if physically present or working in Singapore for 183 days or more in a calendar year, and is then taxed on a progressive scale from 0% to 24%. Non-residents are taxed at a flat 15% on employment income, or the resident rates if higher, and at 24% on most other income.
Personal income tax for expats: why residency is everything
Residency drives everything. A tax resident enjoys progressive rates and personal reliefs; a non-resident does not. The Income Tax Act 1947 sets the 183-day threshold as the primary test, with concessions for continuous employment spanning two calendar years. For expats, working out residency for the year of arrival and departure is where most confusion arises. See the official guidance at www.iras.gov.sg.
Who this affects
Any foreigner earning Singapore employment income, directors’ fees or Singapore-sourced income. Employment Pass, S Pass and Personalised Employment Pass holders are the typical population, alongside foreign directors of Singapore companies.
Rates, thresholds and reliefs
Resident rates for the Year of Assessment 2024 onward rise progressively: the first S$20,000 is taxed at 0%, and the top marginal rate reaches 24% on chargeable income above S$1,000,000. Non-residents pay a flat 15% on employment income or resident rates if that produces more tax. Directors’ fees paid to non-residents are taxed at 24%. Reliefs such as earned income relief and CPF-linked reliefs are available only to residents; note that foreigners on work passes generally do not contribute to CPF.
Costs, fees and timeline
Filing itself is free through IRAS myTax Portal. The filing deadline is 18 April for e-filing each year. Engaging a tax agent to prepare an expat return typically costs S$300 to S$900 for a straightforward case, and S$1,200 to S$3,000 where there are equity awards, dual-source income or tax-equalisation calculations. Employers must file the Form IR8A by 1 March, and must seek tax clearance via Form IR21 at least one month before an expat ceases employment or leaves Singapore.
Step-by-step process
Determine residency for the year using the 183-day and continuous-employment tests. Collect the IR8A from your employer. Declare all Singapore-sourced income and claim available reliefs if resident. File by 18 April. If leaving Singapore, coordinate the IR21 tax clearance, under which the employer withholds final monies until IRAS issues clearance.
Common mistakes and gotchas
Expats frequently miscount days across arrival and departure years, or assume overseas income is always taxable, when in fact foreign-sourced income received by individuals is generally exempt. Others miss the IR21 clearance and find final salary withheld. Equity awards vesting after departure are a recurring complexity.
Related guides across the Raffles group
- Allowable business expenses under the Income Tax Act — Costs and fees breakdown on Singapore Secretary Services.
- Preparing for an IRAS Tax Audit in Singapore (2026): What to Expect and How to Respond on Raffles Corporate Services.
- Singapore tax residency — 183-day rule — Costs and fees breakdown.
Official references
FAQs
What is the 183-day rule?
If you are physically present or employed in Singapore for at least 183 days in a calendar year, you are generally treated as a tax resident and taxed at progressive resident rates.
Are non-residents taxed more?
Non-residents pay a flat 15% on employment income, or resident rates if higher, and 24% on directors’ fees and most other income, without access to personal reliefs.
Do expats pay CPF?
Foreigners on work passes generally do not contribute to CPF, and correspondingly cannot claim CPF-linked reliefs.
Need help with this? Call, SMS or WhatsApp +65 8501 7133, or email [email protected]. Little Big Employment Agency (EA Licence 19C9790) works with a panel of corporate and employment law firms; this article is general information, not legal advice.