A、Tax implications onresidents and non-residents

No of Days employed in SG	Resident/Non-Resident	Tax Implications	Tax Reliefs
At least 183 days in a  year	Resident	Income is taxed at  progressive resident rates  (refer to table below)	Yes
61-182 days in a year	Non-Resident	Employment income earned  in Singapore will be taxed at a flat rate of 15% or the progressive resident  rates (refer to table below), whichever results in a higher tax amount   Director's fees and other income such as rent earned in or derived from  Singapore will be taxed at the prevailing rate of 20% (22% from Year of  Assessment 2017)	No
60 days or less in a year	Non-Resident	Short-term employment  income earned in Singapore is exempt from tax    This rule does not apply if  1) You are a director of a company, a public entertainer or a professional in  Singapore;   2) Your absences from Singapore are incidental to your Singapore employment.  In this case, your total income (including income for services rendered  outside Singapore) is taxable in full in Singapore. Director's fees and other income are taxed at the prevailing rate of 20% (22%  from Year of Assessment 2017).	No

Taxrelief: Income Tax Act Part X section 39 

In the case ofan individual resident in Singapore in the year of assessment, there shall beallowed a deduction, in respect of earned income, which shall be —

a.in the case of anindividual not falling within any other paragraph, the sum of $1,000 or theamount of the earned income;

b. without prejudice to anydeduction allowable under paragraph (c) or (d),in the case of an individual who, in the year immediately preceding the year ofassessment, was totally blind or suffering from any physical or mentaldisability which permanently and severely restricted his capacity for work, thesum of $4,000 or the amount of the earned income;

c. in the case of anindividual who, at any time in the year immediately preceding the year ofassessment, was above 55 years of age but was not above 60 years ofage, the sum of $6,000 or the amount of the earned income; and

d. in the case of anindividual who, at any time in the year immediately preceding the year ofassessment, was above 60 years of age, the sum of $8,000 or the amount ofearned income,

whicheveris less.

B、Resident Tax Rates

 

Income Tax Act Schedule 2

 

RATES OF TAX ONCHARGEABLE INCOME OF

AN INDIVIDUAL OR AHINDU JOINT FAMILY

FOR YEAR OFASSESSMENT 2012 AND OF AN INDIVIDUAL FOR YEAR OF ASSESSMENT 2013 AND

SUBSEQUENT YEARS OFASSESSMENT

	Chargeable  Income	Rate of Tax
For  every dollar of the first	$  20,000	Nil
For  every dollar of the next	$  10,000	2%
For  every dollar of the next	$  10,000	3.5%
For  every dollar of the next	$  40,000	7%
For  every dollar of the next	$  40,000	11.5%
For  every dollar of the next	$  40,000	15%
For  every dollar of the next	$  40,000	17%
For  every dollar of the next	$120,000	18%
For  every dollar exceeding	$320,000	20%.

 

 

ChargeableIncome: Income Tax Act Part X section 38

Thechargeable income of any person for any year of assessment shall be theremainder of his assessable income for that year after the reliefs anddeductions allowed in this Part have been made.

 

AssessableIncome: Income Tax Act Part IX section 37

Theassessable income of any person from all sources chargeable with tax under thisAct for any year of assessment shall be the remainder of his statutory incomefor that year after the deductions allowed in this Part have been made.

 

C、Illustration  (Assume1 SGD= 4.5 RMB)

a. Monthly salary of 50,000 RMB, approximatelyequivalent to 133,333 SGD

 

Estimated Tax Payable in SG/year= 9,950 SGD

b. Monthly salary of 80,000 RMB, approximatelyequivalent to 213,333 SGD

 

Estimated Tax Payable inSG/year= 23,150 SGD

 

(Note: Income tax rebate of max 1000 SGD is only applicable in yearof assessment 2015, so not applicable now)

D、Tax Filling

 

Income is assessed on a preceding yearbasis, ending 31 December. You must file YourIncome Tax Return by 15 Apr of the following year. You can usuallyexpect to receive the income tax bills by September.

E、Comparison of Tax Computationbetween China and Singapore

Situation	Country	Annual Income	Annual Tax Implication	Country with Lower Tax	Difference in RMB
1	China	600,000 RMB	134,340 RMB	Singapore	89,565
	Singapore	133,333 SGD	9,950 SGD (about  44,775 RMB)
2	China	960,000 RMB	255,240 RMB	Singapore	121,065
	Singapore	213,333 SGD	23,150 SGD (about 104,175 RMB)

Assumptions: 

1) 1 SGD= 4.5 RMB  

2) No employment expenses and personalreliefs are considered 

Copy of Copy of Tax_Cal_Final_170211_IRAS.zip

Non Resident Tax Calculator.zip