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How Does Income Tax Work for Expats in Singapore?

Writer: Singapore Expats Association
Singapore Expats Association
Oct 11
5 min read
How Does Income Tax Work for Expats in Singapore

Income tax for expats in Singapore depends mainly on your tax residency status, how much Singapore-sourced income you earn, and how long you stay or work in the country. Tax residents pay progressive rates from 0% to 24%, while non-residents can face different rules and generally cannot claim personal reliefs.

Singapore’s tax system is relatively straightforward once you understand those basics. The part that often confuses newcomers is that immigration status and tax residency are not the same thing.

Tax residency starts with the 183-day rule

A foreigner is generally treated as a Singapore tax resident for a particular Year of Assessment if they stayed or worked in Singapore for at least 183 days in the preceding calendar year.

There are other ways to qualify. A foreigner who stays or works continuously in Singapore for three consecutive years may also be treated as a tax resident for all three years. Certain employees whose continuous employment spans two calendar years can qualify when their total period of stay is at least 183 days.

This matters because tax residents and non-residents are taxed differently.

Your Employment Pass, S Pass, or other immigration status does not automatically decide your tax residency. What matters for income tax is whether you meet IRAS rules.

Tax residents pay progressive rates

Singapore uses progressive personal income tax rates.

For Year of Assessment 2024 onwards, the first S$20,000 of chargeable income is taxed at 0%. Rates then rise through several bands, reaching 24% on chargeable income above S$1 million.

“Chargeable income” is not necessarily the same as your gross salary. Allowable deductions, donations and personal reliefs can reduce the amount on which tax is calculated.

That means somebody earning S$120,000 does not pay the same tax rate on every dollar. Different portions of income fall into different bands.

This is one reason Singapore’s headline top rate tells you very little about what a typical professional actually pays.

Non-residents are taxed differently

If you do not qualify as a tax resident, your Singapore employment income is generally taxed at 15% or the progressive resident rates, whichever produces the higher tax amount.

Other types of income, including many director’s fees, consultancy fees and rental income, are generally taxed at 24% for non-residents.

Non-residents also cannot claim personal reliefs.

There is a separate short-term employment rule. A non-resident who works in Singapore for 60 days or less in a year may be exempt from tax on that employment income, although important exceptions apply to company directors, public entertainers and certain professionals.

If you are on a short assignment, check the exact treatment rather than assuming the 183-day rule is the only number that matters.

Singapore taxes income on a preceding-year basis

Singapore income tax is assessed on income earned in the previous calendar year.

For example, Year of Assessment 2026 relates to income earned from 1 January to 31 December 2025.

That timing can confuse expats arriving midway through the year because your first tax bill may not appear immediately after you start work.

Keep your employment records and payslips even if your employer submits income information directly to IRAS.

Your employer may submit income automatically

Many employers participate in IRAS’s Auto-Inclusion Scheme (AIS).

Under AIS, the employer submits employment income details directly to IRAS, and those figures can appear pre-filled in your tax return. For Tax Season 2026, participating employers were required to transmit employee income information by 1 March.

Pre-filled does not mean you should ignore it.

Check that salary, bonuses and taxable benefits look correct before submitting your return. If something is missing or obviously wrong, deal with it rather than assuming IRAS will correct it automatically.

Do expats need to file a tax return?

Generally, IRAS requires an individual to file if their total income in the preceding calendar year exceeded S$22,000, if they had self-employment net profit above S$6,000, or if they were a non-resident who earned Singapore income.

You must also file if IRAS specifically tells you to do so, even if you think your income falls below the usual threshold.

The standard individual income tax filing deadline is 18 April. Returns can be filed through myTax Portal using Singpass or a Singpass Foreign User Account where applicable.

Some taxpayers may be covered by the No-Filing Service, but you should still review the information IRAS has on record.

What happens to foreign income?

This is another area where expats often expect a more complicated answer.

For a Singapore tax resident, foreign-sourced income brought into Singapore is generally tax-exempt when received by an individual, apart from specific situations such as income received through a Singapore partnership.

But work performed for a foreign employer does not automatically become “foreign income”.

If you are physically working in Singapore for an overseas company, some or all of that employment income may still be Singapore-sourced and taxable here. IRAS looks at where the employment duties are actually carried out.

Cross-border work can become more complicated when you regularly travel for business, split duties between countries, or remain tax resident somewhere else.

Can expats be taxed twice?

It can happen, but Singapore has Double Taxation Agreements (DTAs) with many jurisdictions.

Depending on the treaty and your circumstances, you may qualify for an exemption, reduced tax rate or foreign tax credit. Singapore tax residents may also apply for a Certificate of Residence when they need to prove Singapore tax residency to a foreign authority.

Do not assume that paying tax in one country automatically cancels your obligations in another. The result depends on the relevant treaty and the source of the income.

How much tax should an expat set aside?

There is no single percentage that works for everyone.

Your bill depends on income, residency status, bonuses, taxable benefits and available reliefs. A newly arrived non-resident and a long-term resident earning the same salary can face different outcomes.

If your employer does not withhold Singapore tax from your salary, keep part of your income aside rather than treating every monthly payment as spendable cash.

The practical habit is simple: check your residency status early, review what your employer reports to IRAS, and understand when your first filing obligation begins.

Singapore’s tax system is manageable once those pieces are clear. The biggest problems usually come from assuming that work-pass status, payroll deductions or overseas employment automatically settle the tax question.

If you are building your professional and social life in Singapore, join the Singapore Expats Association (SEA). Membership can help expats meet people, grow local networks, take part in community activities and access practical support while settling into Singapore. Click here to learn more and become a member. For partnerships, collaborations, or assistance, contact members@expatassociation.com.

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