Finance Tips

Who is a Non-Resident?

You are considered a foreign non-resident if you are an individual exercising any profession or vocation in Singapore for less than 183 days in a year under a contract for service.

Non-Resident Tax Exemptions

1. However, this rule does not apply if you are a director, public entertainer or exercising a profession in Singapore.
2. They are unable to claim for personal relief.
3. For director’s fees and income other than employment, they will be taxed at a flat rate of 20% from Year of Assessment 2005.

They are also exempted from tax on remittances made to Singapore. Continue reading ‘Singapore Non-Resident Taxation and Exemptions’ »

Singapore’s agreement with the Russian Federation for the avoidance of double taxation comes into force on 16 January 2009 following the completion of ratification formalities. The provisions of the Agreement shall apply to income derived on or after 1 January 2010.

The Agreement, which is Singapore’s 60th agreement for the avoidance of double taxation, encourages and facilitates cross-border trade and investment between Singapore and Russia through the lowering of tax barriers and the better definition of taxing rights between the two nations. The main provisions under the Agreement include the following:

a) Lower withholding tax rates are imposed on dividends, interest and royalties. The tax rate for interest and royalties is 7.5% while the following rates apply to dividends:
i) 5% (for corporate shareholders holding at least 15% of the share capital and has invested at least US$100,000 or its equivalent in other currencies);
ii) 5% for the Government; and
iii) 10% (for other shareholders) Continue reading ‘Singapore – Russian avoidance of double taxation agreement ratified’ »