Non-Resident Tax in Singapore 2026

Employees who are in Singapore for fewer than 183 days in a calendar year are taxed as non-residents. IRAS charges the higher of a flat 15% on gross employment income or the resident progressive rates applied to the same income. Non-residents pay no CPF and receive no personal reliefs. The employer withholds the tax and pays it directly to IRAS.

The two-rate comparison

IRAS does not simply charge non-residents a flat rate. Instead it computes tax two ways and takes the larger:

  1. Flat 15% on gross employment income, with no reliefs deducted.
  2. Progressive resident rates on the same gross income, again with no reliefs.

At lower incomes the flat 15% almost always produces the larger figure, because the resident rates start at 0% and only reach 15% well above S$100,000 of chargeable income. At very high incomes the progressive rate can eventually exceed 15%.

No CPF for work pass holders

Employees on Employment Passes, S Passes, Work Permits and other work authorisations do not contribute to the Central Provident Fund and neither do their employers. This means the gross salary figure on a work pass holder's contract is the base for the tax calculation with no CPF deduction first.

Worked examples

Monthly gross Annual gross Flat 15% Progressive rate Tax charged Net annual
$5,000/month $60,000 $9,000.00 $1,950.00 $9,000.00 $51,000
$10,000/month $120,000 $18,000.00 $7,950.00 $18,000.00 $102,000

At both salary levels the flat 15% exceeds the progressive calculation, so the flat rate is charged in both cases.

When residency status changes during the year

If you enter Singapore partway through the year and reach 183 days, IRAS may treat you as a tax resident for the entire year rather than a split-year treatment. This "administrative concession" allows you to file as a resident for the whole year once the 183-day threshold is crossed, claiming reliefs and using progressive rates from the first dollar of income. If you are uncertain, contact IRAS or a registered tax agent when the year ends.

Once you qualify as a resident, you are taxed at resident progressive rates in future years, subject to continued presence in Singapore. See the income tax reliefs guide for the reliefs available to residents.

Frequently asked questions

When does someone become a Singapore tax resident?

IRAS treats you as a tax resident for a calendar year if you are physically present or employed in Singapore for 183 days or more during that year. Short business trips and overseas leave with a Singapore employer generally count toward residency. Once you qualify as a resident, you are taxed at progressive resident rates and can claim personal reliefs.

Do Employment Pass holders pay CPF?

No. CPF contributions apply only to Singapore citizens and permanent residents. EP, S Pass and other work pass holders do not contribute to CPF, and employers do not pay the employer CPF share either. This means the gross salary on an EP holder's offer letter is closer to cash-in-hand than the equivalent figure for a local employee, but there is no employer CPF top-up going into a savings account.

What is the director fee tax treatment for non-residents?

Director fees paid to non-resident directors are subject to a 24% withholding tax rate, not the 15% flat rate that applies to non-resident employees. The company paying the fee withholds the tax and remits it to IRAS. If the director also performs executive functions as an employee, those employment earnings use the 15% or progressive comparison instead.

Sources: IRAS Non-Resident Individual Tax (IRAS website, 2026). Last updated 2026-11-04.