Working in Singapore for the first time?

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Are you a foreigner who has just landed a job in Singapore? Congratulations! Working in Singapore can be a rewarding experience as the Little Red Dot is a multicultural melting pot where there’s something for everyone. Expatriate families will find it easy to assimilate with access to high-quality education for their children while single professionals will enjoy discovering the city’s vibrant nightlife.

As you settle into your new job and life in Singapore, do be aware of the tax obligations which come along with your job offer. Here are some essential tax matters to look out for:

Working out your tax residency

Generally, all income earned in Singapore is taxable. Rest assured that your tax contributions go towards public services and infrastructure enjoyed by both Singaporeans and foreigners. As a foreigner, you will be treated as a tax resident for a particular Year of Assessment if you have:

1. Stayed/worked in Singapore:

• For at least 183 days in the previous calendar year; or
• Continuously for three consecutive years; or

2. Worked in Singapore for a continuous period across two calendar years and your total period of stay* is at least 183 days. This excludes directors of a company, public entertainers or professionals.  

*including your physical presence immediately before and after your employment.

Learn about your tax residency status to know if you are required to file taxes.

Filing tax on time

IRAS has made it easy for foreigners to learn about their tax matters online. As a foreigner working in Singapore, you must file an Income Tax Return between 1 March to 18 April if you have received a letter, form or an SMS from IRAS informing you to do so, regardless of how much you earned in the previous year or whether your employer is participating in the Auto-Inclusion Scheme (AIS) for Employment Income.  There will be a penalty up to $5,000 if you do not file your tax return before 18 April.

Kickstart the tax filing process by setting up your Singpass to log in to myTax Portal and update your contact details with us in order to receive timely SMS/email notifications on your tax matters.  

Tax Tips

To save on taxes, you can claim donations to approved charities and tax reliefs for supporting your spouse and children, course fees for approved courses, etc. You can also consider saving voluntarily for your own retirement through the Supplementary Retirement Scheme and get tax deduction.

Tax Clearance

You must settle all your taxes if you are about to leave Singapore or change to another job within Singapore. This process is known as tax clearance. Your current employer must notify IRAS and ensure you have paid all taxes before you cease employment with them.

For the tax clearance process, your employer must notify IRAS at least one month in advance by fillng the Form IR21 They are required to withhold all monies due to you from the day of notification of intention to cease employment, which is used cover any outstanding tax liabilities. If the tax payable is less than the withholding tax, your employer will release the balance to you.

One-glance digital services

IRAS has made it easy for foreigners to learn about their tax matters online. You can access your tax account, file your tax return, and make tax payments via myTax Portal. You can also sign up for e-alerts to receive notifications about your tax matters.