You are considered a foreign non-resident if you are an individual exercising any profession or vocation in Singapore for less than 183 days in a year under a contract for service.
As a non-resident, you will be exempted from paying income tax if you have been employed for 60 days or less in a calendar year. However, this rule does not apply if you are a director, public entertainer or exercising a profession in Singapore.
Non-residents will be taxed only on income earned in Singapore. They are unable to claim for personal relief.
Non-residents will be taxed on their employment income at a flat rate of 15% or the resident rates, depending on which gives rise to higher tax. For director’s fees and income other than employment, they will be taxed at a flat rate of 20% from Year of Assessment 2005.
They are also exempted from tax on remittances made to Singapore.
| Category | YA 2005 (%) |
|---|---|
| Employees Remuneration Stay in Singapore more than 60 days but less than 183 days Stay Less than 60 days |
15.0 Exempt |
| Entertainer Income | 15.0 |
| Other Taxable Income | 20.0 |
| Capital Gains Tax | None |
| Royalty Note: *10% effective 1 Jan 2005 | 15.0 * |
| Copyright | 2.0 |
| Directors’ Remuneration | 20.0 |
| Interest | 15.0 |
| Management Fees | 20.0 |
| Professional Fees | 15.0 |
| International Arbitrators Fees | 0.0 |
