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Important Notes for 2020 Personal Income Tax Filing

  • March 4, 2020

Important Notes for 2020 Personal Income Tax Filing

Determine if you need to file a tax return

Taxpayers include:

  1. Singapore citizen
  2. Settle in Singapore and become a Singapore Permanent Resident (PR)
  3. Foreigners who reside or work in Singapore for 183 days or more throughout the year (except company directors)

Note: The 183 days include weekends and statutory holidays in Singapore, as well as overseas vacations or business trips during work.

For more details, please see table below:

Duration of stay in Singapore(Including working hours)Resident tax statusTax implications
At least 183 days in a yearTaxpayerYour tax will be calculated on a progressive resident tax basis. You can claim tax relief
At least 183 days in two consecutive yearsRecognized as a tax resident for both yearsYour tax will be calculated on a progressive resident tax basis. You can claim tax relief
Live for three yearsThese three years are considered tax residentsYour tax will be calculated on a progressive resident tax basis. You can claim tax relief

 

If you live in Singapore for more than 61 days but less than 183 days in 2019, you need to pay 15%-22% of personal income tax in accordance with the tax regulations of “non-tax resident”.

For more details, please see table below:

Duration of stay in Singapore

(Including working hours)

Resident tax statusTax implications
61 days to 182 days in SingaporeNon-tax residentYou need to pay taxes based on 15% of your income or a gradual percentage of the resident tax, whichever is higher. Your director’s remuneration or other income is taxed at a rate of 20% (22% in 2017). You are not eligible for tax relief
Employment for 60 days or less in SingaporeNon-tax residentYou do not need to pay taxes on your short-term employment income unless: 1) you are a director of a company in Singapore, or a public entertainer, or other professional (such as a consultant, speaker, coach, etc.) 2) Even if you are not working in Singapore, your income (including all overseas income) is taxed at the rate of Singapore tax resident

 

Your director’s remuneration or other income will be taxed at a rate of 20% (22% in 2017). You are not eligible for tax relief

 

Commission income tax notice

If you are a self-employed insurance and industrial agent, the total annual commission income does not exceed S $ 50,000,  you can pay the recognition fee based on 25% of the total commission income.

If the income has been pre-filled under the pre-fill plan, 25% of the deemed expenses will automatically appear on its electronic tax return.

If not pre-filled, you still have the option to request a 25% determination fee during the electronic filing process. The deduction will be calculated automatically based on the nature of the business in the tax return.

Please refer to the following tips from the Singapore Revenue Authority:

“Self-employed commission agents, such as self-employed insurance and property agents, with an annual gross commission income of up to $50,000 can claim a deemed amount of expenses based on 25% of their gross commission income. If the income of these commission agents has been pre-filled under the Pre-filling Scheme, the 25% deemed expense will be automatically shown in their electronic tax returns. Where their income has not been pre-filled, they still have the option to claim the 25% deemed expense during e-Filing. The deduction will be automatically computed once they indicate their nature of business in their electronic tax returns.  

Alternatively, self-employed commission agents with an annual gross commission income of up to $50,000 may choose to claim tax deductions based on the actual amount of allowable business expenses incurred. They can do so by amending the computed information in their electronic tax returns. They will have to retain their expense records for 5 years and provide IRAS with the relevant supporting documents upon request.  ”

 

Self-employed agents whose total annual commission income does not exceed S $ 50,000 can apply for tax reduction based on the actual allowable amount of business expenses. Tax reductions can be achieved by modifying the calculation information in the electronic tax return.