Partial Tax Exemption
2019-06-18
Pay GST
2019-06-24
Partial Tax Exemption
2019-06-18
Pay GST
2019-06-24

Tax for Non-Resident Director


Whether withholding tax is applicable depends on the residency status of the board director.

 

Board Director

For tax purposes, a board director is a member of the board of directors of a company.

 

Residency Status of Board Director

Physical presence in Singapore in the year preceding the Year of Assessment (YA) Residency status Withholding Tax required
Less than 183 days  Non-Resident Yes, for remuneration paid to non-resident director. For details, refer to Tax Obligations for Non-Resident Directors
 183 days or more Resident No. If tax has been withheld, see also Tax Refunds for Resident Directors

 

Executive Director

A board director may also take on an executive role (for example, Chief Executive Officer, Chairman and Managing Director) and is involved in the daily running of the business operations. The remuneration derived by a non-resident director in his capacity as an executive director is not subject to withholding tax.

To understand the tax obligations of foreigners in Singapore holding the position of executive director, please refer to foreigners working in Singapore .

 

Taxable Income

Director’s remuneration refers to both cash and non-cash payments and includes:

  • salary;
  • bonus;
  • director’s fees;
  • accommodation provided and
  • gains from stock options or other share ownership plans

See also Tax Treatment of Employee Remuneration (allowances, benefits-in-kind etc).

 

Remuneration Received in the Capacity as a Board Director

Receive director’s remuneration/fees* in the capacity as a non-resident director of a company which is a tax resident in Singapore – Taxed at 22%.

 

Gains from Exercise of Stock Options (ESOP) or Vesting of Stock Awards (ESOW)

Receive gains from ESOP/ESOW in the capacity as a non-resident director of a company which is a tax resident in Singapore.

The employer must file the  Form IR21A to report the  gains from ESOP/ESOW within 30 days from the date of exercise, assignment, release or acquisition of the shares. SingPass holders can also submit the Form IR21A here.

The director will receive a tax bill on the amount of tax to pay.

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新加坡福智霖集团有限公司
Singapore FOZL Group Pte. Ltd.
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