Singapore Income Tax for Foreigners & Expats Guide 2026

Singapore is a top international hub for foreign professionals, digital nomads, and expatriates. However, navigating Singapore income tax for foreigners, expats, Employment Pass (EP), S Pass, and Work Permit holders requires understanding specific IRAS tax residency rules, non-resident tax rates, tax clearance procedures, and double taxation agreements.

1. Determining Tax Residency (183-Day Rule)

Under regulations set by the Inland Revenue Authority of Singapore (IRAS), your tax liability depends on whether you are classified as a tax resident or a non-resident.

For more technical details on continuous stay spanning multiple years, read our Singapore Tax Residency Guide.

2. Resident vs Non-Resident Tax Rates

The tax treatment for foreign workers varies dramatically based on days of employment in Singapore:

Check your personal tax rates using our interactive Singapore Income Tax Calculator.

3. Tax Rules for EP, S Pass & Work Permit Holders

Foreign professionals holding an Employment Pass (EP), S Pass, or Work Permit are subject to income tax on all remuneration earned from Singapore employment, including salary, performance bonuses, director fees, housing allowances, and stock options.

4. Income Tax for Malaysians Working in Singapore

Thousands of Malaysian citizens commute daily or reside in Singapore for work. Under the Singapore-Malaysia Double Taxation Agreement (DTA):

• Income earned for work physically performed in Singapore is taxable in Singapore.
• Malaysians who spend 183+ days in Singapore are taxed as residents at progressive rates (0%–24%).
• Employment income taxed in Singapore is generally exempt from Malaysian income tax upon remittance into Malaysia under Malaysian tax laws.

5. Form IR21 Tax Clearance Process

When a non-Singapore citizen employee prepares to leave Singapore, resigns, or transfers overseas, employers must initiate Form IR21 Tax Clearance:

1. Employer Notification: The employer files Form IR21 with IRAS at least 1 month prior to the employee's last day.
2. Withholding Monies: The employer must withhold all payments (salary, bonus, severance) due to the employee.
3. IRAS Assessment: IRAS computes final tax liability across all unassessed income years.
4. Settlement & Release: Once the tax bill is settled, IRAS issues a clearance letter and the employer releases remaining funds to the employee.

6. Double Taxation Agreements (DTAs)

Singapore has over 90 comprehensive Double Taxation Avoidance Agreements (DTAs) worldwide. DTAs protect foreign workers from being taxed twice on the same income and often provide short-term tax exemptions for cross-border assignments.

7. Tax Reliefs Available to Foreigners

Although foreign pass holders cannot contribute to CPF (and thus do not get CPF tax relief), resident foreigners can reduce taxable income through:

• Earned Income Relief: Up to S$1,000 automatically granted.
• Supplementary Retirement Scheme (SRS): Foreigners can contribute up to S$35,700 per year, receiving a dollar-for-dollar tax deduction.
• Parent & Child Relief: Available if qualifying dependents meet IRAS dependency conditions.

Learn how to optimize your reliefs in our Singapore Tax Reliefs & Deductions Guide.

8. Frequently Asked Questions