Welcome to the vibrant city-state of Singapore, where opportunities abound for digital nomads, expats, and location-independent workers. If you're considering making Singapore your new home and establishing tax residency, this guide will walk you through the essential steps to attain that status.
Step 1: Understand the Definition of Tax Residency
A foreign individual is considered a tax resident in Singapore if they have been physically present or have exercised employment in Singapore for 183 days or more in a calendar year. This also includes the continuous or consecutive presence spanning over two years.
Step 2: Obtain a Valid Employment Pass or Visa
To stay and work in Singapore legally, you'll need to secure an appropriate employment pass or visa, such as the Employment Pass, EntrePass, or Personalized Employment Pass. Ensure your pass or visa is valid for the duration of your stay.
Step 3: Maintain Physical Presence
Ensure that you are physically present in Singapore for at least 183 days in a calendar year. Keep a record of your entry and exit dates as proof of your physical presence.
Step 4: Keep Accurate Records
Maintain meticulous records of your work, income, and stay in Singapore. This includes employment contracts, payslips, rental agreements, and any other documents that can substantiate your residence and employment in Singapore.
Step 5: File Your Tax Returns
As a tax resident, you are required to file your annual tax returns with the Inland Revenue Authority of Singapore (IRAS). Ensure that all your income earned in Singapore is reported accurately.
Step 6: Understand the Double Taxation Agreements (DTAs)
Singapore has DTAs with various countries to avoid double taxation. Familiarize yourself with these agreements to understand how they may benefit you and prevent being taxed on the same income in both Singapore and your home country.
Legal References
- Income Tax Act (Chapter 134) - Sections 2 and 13
- IRAS e-Tax Guide: Tax Residence
- IRAS Website: Tax Residence Status of Individuals
Useful Links
