Singapore follows a “current year basis” for taxation, meaning that individuals taxes to pay for a particular year is assessed in the following year. In this guide, we will help you to understand and calculate your taxes and exactly how the income earned in the calendar year 2023 will be taxed next year.
Tax Residency for individuals in Singapore
Tax Residency for Individuals in Singapore
It is important to understand that taxation in Singapore is contingent upon an individual’s residency status as defined by the Inland Revenue Authority of Singapore (IRAS). An individual is deemed a tax resident for a specific Year of Assessment (YA) under the following circumstances:
- If they are a Singapore Citizen or Singapore Permanent Resident residing in Singapore, except for temporary absences; or
- If they are a Foreigner who has been in Singapore:
- For a minimum of 183 days in the preceding calendar year; or
- Continuously for three consecutive years, even if the duration of stay in Singapore is less than 183 days in the initial and/or third year; or
- If they are a Foreigner who has been employed in Singapore for a continuous period spanning two calendar years, with a total stay of at least 183 days (including the period preceding and following the employment). This pertains to employees entering Singapore, excluding directors, public entertainers, or professionals.
If you meet these criteria, you will qualify as tax resident, which means that all income acquired within Singapore is subject to taxation.
