This page explains when you need to pay tax in Singapore on income earned from overseas. It mentions specific situations, like working overseas as part of a Singapore job or having a business both in Singapore and abroad.
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Generally, you do not need to pay tax or report overseas income received in Singapore, including income deposited into a Singapore bank account. However, you would need to pay tax on overseas income for the scenarios below.
Overseas income that you pay tax on
1. You receive it through partnerships based in Singapore.
2. Your overseas employment is related to your Singapore employment (e.g. you need to travel abroad as part of your job).
Example 1: Regional sales manager employed by a Singapore company
You are a regional sales manager employed by a Singapore company. Your role requires frequent overseas travel to oversee operations in various countries/regions. In this case, all your employment income is taxable in Singapore because your overseas work is related to your employment in Singapore.
3. You operate a trade/business in Singapore and transacted a related trade/business overseas.
4. You work in Singapore for a foreign employer.
5. You are employed overseas on behalf of the Singapore Government.
Tax treatment for overseas employment on behalf of the Singapore Government
If you are a Singapore Citizen or a tax resident working for the Singapore Government outside the country, the employment income, including allowances, is taxable in Singapore. Your employer will send the income information to IRAS.
You can approach your employer to find out about the tax remission for Overseas Cost of Living Allowances. If the Minister of Finance approves the tax remission application, you will not need to pay tax on the allowances portion.
Generally, you will not be taxed in the foreign country/region if:
- There is a Double Taxation Agreement (DTA) between Singapore and the foreign country/region; or
- There is a provision for reciprocal exemption by Singapore and the foreign governments.
Reporting overseas income
If you have taxable overseas income, you need to report it in your Income Tax Return under the relevant category like 'Employment Income' (if your employer is not under the Auto-Inclusion Scheme), 'Trade Income' or 'Other Income'.
If your taxable overseas income is also taxed in the foreign country/region, you may apply for double taxation relief to avoid being taxed twice on the same income.
Your employer will have to refer to reporting employee earnings (IR8A, Appendix 8A, Appendix 8B, IR8S) on the need to prepare the Form IR8A.
Employers participating in the Auto-Inclusion Scheme will need to transmit the overseas income information to IRAS electronically.