Overseas Employment
If you are contracted to be based overseas to render your full employment services wholly outside Singapore, you are not liable to tax in Singapore as your employment income is sourced outside Singapore.
It does not matter where and how you are being paid. Your employer will not need to prepare the Form IR8A for you to file your tax in Singapore.
Rendering Services in Singapore as Part of Your Overseas Employment
If you render your employment services in Singapore as part of your overseas employment, your income attributable to services rendered in Singapore is subject to tax in Singapore as follows:
Employment exercised in Singapore for not more than 60 days in a calendar year
Your employment income will be exempt from tax.
Employment exercised in Singapore for 61 to 182 days in a calendar year
You will be regarded as a non-resident. Your employment income will be taxed at either a flat rate of 15% (no personal reliefs would be granted) or progressive resident rates, whichever gives rise to a higher tax.
Your employer will have to seek Tax Clearance when you cease employment in Singapore.
Employment exercised in Singapore for 183 days or more in a calendar year
You will be regarded as a tax resident. Your employment income, after deduction of tax reliefs, will be taxed at progressive resident rates.
Your employer will have to seek Tax Clearance when you cease employment in Singapore.
