Singapore Tax Residency Rules

According to Section 2(1) of the Income Tax Act, a "Singapore tax resident" is defined as:

• Individuals: An individual who has resided or worked in Singapore for more than 183 days in the preceding year (excluding company directors) or resides permanently in Singapore, except for reasonable temporary absences.

• Companies: A company carrying on business in Singapore with its principal place of management situated in Singapore.

Determining Tax Residency

• Individuals: Residing or working in Singapore for more than 183 days in the calendar year preceding the tax year, or maintaining permanent residence in Singapore with justified temporary absences.

• Companies: Tax residency is determined by the location where the "control and management" of the business is conducted. If this is in Singapore, the company is considered a Singapore tax resident.

Benefits of Singapore Tax Residency

• Avoidance of Double Taxation Agreement (DTA): Resident companies can benefit from DTAs between Singapore and other countries.

• Tax Exemptions: Foreign-source dividends, foreign branch profits, and income from outsourced services are exempt under Section 13(8) of the Income Tax Act.

• Tax Exemption Schemes: Newly established companies can enjoy various tax exemption schemes.

Choosing Move2SG

Move2SG provides comprehensive support throughout the Singapore Tax Residency Application process. Our services include:

• Assisting in the preparation and submission of all required documents.

• Ensuring compliance with all legal and regulatory requirements.

• Offering expert guidance to ensure a smooth and efficient application process.

For personalized support and expert advice, please contact us.