Personal income tax for expats (resident vs…

Personal income tax for expats in Singapore turns on a single test: whether you are physically present or exercising employment for at least 183 days in the calendar year. Residents pay progressive rates from 0% to 24%; non-residents below that threshold generally pay a flat 15% on employment income, or resident rates if higher.

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.

What determines resident vs non-resident status

Under Section 2 of the Income Tax Act 1947, an individual who is physically present or exercises employment in Singapore for 183 days or more in a calendar year is treated as a tax resident for that year of assessment. Below 183 days, an expat is generally a non-resident; employees working in Singapore for 60 days or fewer in a calendar year are fully exempt from tax on that employment income, while those present for 61 to 182 days are taxed at 15% of gross income or resident progressive rates, whichever produces the higher tax.

Who this applies to

This applies to any foreigner on an Employment Pass, S Pass or Work Permit earning Singapore-sourced employment income, including first-year arrivals who have not yet crossed the 183-day threshold. Expats relocating mid-year should also review the pathways available for moving to Singapore as a high-net-worth individual, since the route used to relocate (employment, investor or family office pathways) can change which year’s income counts toward the residency test.

Documents required

Employees need: Form IR8A (and where applicable Appendix 8A/8B) issued by the employer by 1 March each year showing gross salary, bonuses and benefits-in-kind; the Notice of Assessment (NOA) from the prior year if available; passport and Employment Pass or work pass details; a tax reference number issued by IRAS on first filing; and, for anyone leaving Singapore permanently or for more than three months, Form IR21 filed by the employer at least one month before the employee’s last working day, which triggers tax clearance and, under Section 68 of the Income Tax Act 1947, obliges the employer to withhold all outstanding monies due to the employee until IRAS issues its clearance directive.

Cost and timeline

There is no government fee to file personal income tax in Singapore. The filing window runs from 1 March to 18 April for e-filing (15 April for paper filing) each year, covering income earned in the preceding calendar year. IRAS typically issues the Notice of Assessment within a few weeks of e-filing, and tax is payable within 30 days of the NOA date unless the taxpayer is on GIRO instalments.

Step-by-step process

1. Track physical presence and employment days in Singapore across the calendar year to determine likely residency status.
2. Collect Form IR8A from the employer by early March.
3. Log in to myTax Portal with Singpass (or a foreign identification number if Singpass is not yet issued) and e-file by 18 April.
4. Claim applicable reliefs (resident taxpayers only) such as earned income relief and CPF relief where relevant.
5. If departing Singapore, ensure the employer has filed Form IR21 and obtained tax clearance before releasing final pay.

Common mistakes and rejection reasons

The most frequent error is assuming non-resident status simply because the calendar-year day count has not yet reached 183 days, without accounting for IRAS’s administrative concession that allows two-year continuous employment arrangements straddling two calendar years to be treated as resident from the first year. A second common mistake is failing to notify the employer of an intended departure early enough for the one-month IR21 lead time, which can delay final salary payment. For the broader relief picture on foreign employment income structuring, see our note on the Family Office Principal Track under ONE Pass and GIP, which interacts with personal tax residency for principals relocating under that route.

Worked example

An expat relocates to Singapore on 1 September under a two-year Employment Pass contract. By 31 December of the arrival year, the employee has only spent 122 days in Singapore, below the 183-day threshold for that calendar year taken alone. Applying IRAS’s administrative concession for continuous employment spanning two calendar years, the employee’s total presence across the arrival year and the following year exceeds 183 days, so both years are assessed at resident rates rather than the less favourable non-resident rate. The employer’s payroll team, unaware of this concession, initially withholds tax at the flat non-resident rate for the arrival year; the employee later claims a refund via their annual filing once resident treatment is confirmed by IRAS.

Regulator references

For the underlying rules referenced above, see IRAS, MAS, CPF Board.

Related guides

For a step-by-step eligibility checklist, see the eligibility and requirements checklist for personal income tax residency.

FAQs

Can I be treated as a resident in my first partial year in Singapore?
Yes, under IRAS’s two-year administrative concession, if your employment straddles two calendar years and totals at least 183 continuous days across them, both years can be treated as resident years.

What is the top resident tax rate?
24%, applying to chargeable income above S$1,000,000 under the current resident progressive rate schedule.

Do non-residents get personal reliefs?
No. Personal reliefs such as earned income relief, CPF relief and course fee relief are only available to tax residents.

What happens if my employer does not file Form IR21?
The employer, not the employee, is liable for penalties for late or missing IR21 filings, but the employee’s final pay may still be withheld pending tax clearance.

Is director’s fee income taxed the same way as salary?
No. Non-resident director’s fees are taxed at a flat 24% (22% for years before the current rate schedule), regardless of the number of days worked in Singapore.

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.