HRSINGAPORE Community Discussions
Individual Income Tax
Dear HR Practitioners,
I would like to find out individual income tax residential status for YA2020 for a Singapore PR staff who employed by Singapore company but:
a) posted on a overseas assignment incidental to Singapore employment for more than 6 months since 2019 and stayed in Singapore less than 183days in 2019 and
b) employed in Singapore for three consecutive years (2017 = tax resident; 2018= tax resident; 2019= less than 183days)
Remarks: Based on the above mentioned, I was told by IRAS that this person is non tax resident for YA2020.
You may wish to refer to IRAS’ Interpretation and Practice Notes entitled “Taxation of Income from Overseas Employment” dated 25 Feb 1993 (the “Practice Notes”). It can be found here in the IRAS’ website.
It is stated in the Practice Notes that “a Singaporean who satisfies the 6 month overseas employment criterion can choose to be treated as a non-resident for the year of assessment following the year of his overseas employment… With this extension, an individual will effectively not be taxed on his overseas employment income.”
The Practice Notes goes on to say that “IRAS will continue to treat a Singaporean where period of overseas employment in any year is longer than 6 months as a resident if he does not wish to avail himself of this concession”
You may wish to also note that IRAS is removing this concession from YA 2021. Please refer to the IRAS update on 6 August.