Your Essential Guide to Working in Singapore
Inland Revenue Authority of Singapore (IRAS)
The leading revenue authority in the world | A partner of the community in nation-building and inclusive growth
Welcome to Work Friend, our monthly newsletter where we look at the latest news, tax tips and career opportunities in IRAS.
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. Whether you are a single professional exploring the city's lively nightlife or an expatriate family seeking high-quality education for your children, Singapore has something for everyone.
As you embark on this new chapter in Singapore, it's crucial to familiarise yourself with the tax obligations that accompany your employment. Rest assured that your tax contributions go towards public services and infrastructure enjoyed by both Singaporeans and foreigners. Here are some essential tax matters to consider:
?? Determining Your Tax Residency
Generally, all income earned in Singapore is taxable. 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.
?? Timely Tax Filing
We have made it easy and convenient for you to learn about your?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.?Failure to file your tax return before 18 April may result in a penalty of up to $5,000.
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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. ?
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??Tax-Saving Strategies
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, and voluntary contributions to your?Supplementary Retirement Scheme for tax deductions.
??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.
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Want more tips to save on your taxes? Read more here from TaxBytes.
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This month, we would like to highlight job openings which offer valuable career opportunities in various fields.
We are looking for:
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