If you work in Singapore but are working for an employer based overseas, you may qualify as an Area Representative. As such, you could enjoy time apportionment of income. Your tax payable will be based on the days you are physically present in Singapore. But any benefits-in-kind you receive in Singapore will be fully taxed.You are a foreign employer if your company is not registered in Singapore. A company with a local office in Singapore that has registered with International Enterprise Singapore is also considered a foreign employer.
To be eligible, you need to meet the following criteria:
Your income is calculated based on the duration of your stay in Singapore in a given year. Even if you are present for part of a day, it will be counted as a day. It is calculated using:
Days physically present in Singapore _________________________________ x Employment Income Total duration in days in the basis period
You could be treated as a non-resident or a resident based on the total duration of the work you do in Singapore.
You can be treated as a non-resident or a resident based on the number of days you work in Singapore. And the tax you have to pay will be determined by the duration of your stay.
Have a look at the table below to see what tax rates apply to you based on your residency status.
|Number of Days Worked in Singapore||Status of Residency*||Tax Implications|
|Days worked in Singapore is 60 or less||Non-Resident||Your income will be exempt from tax.|
|Days worked in Singapore is 61 to 182||Non-Resident||15% or resident rates on your apportioned income, whichever is higher.|
|Days worked in Singapore is 183 or more||Resident||Resident tax rates will apply.|
|3 years or more||Resident||Resident tax rates will apply.|
*Duration of stay within a calendar year.
You have to submit certain documents to the IRAS on or before 15 April for the year of assessment where you qualify for the Area Representative status. The documents you need are:
If your employment arrangement doesn’t change the next year, you won’t have to apply for Area Representative status if it’s already approved. Although you still need to provide IRAS with the Area Representative Travel Calculator on or before 15 April to benefit from tax concessions prevalent for this scheme.
If there are changes to your employment arrangement, you need to let IRAS know so they can determine if you are still eligible for the Area Representative status.