The Aussie Expat’s Guide to Tax in Singapore

Singapore is the dream posting for a lot of Aussie expats: low taxes, gleaming city, world-class food courts, and a flight home that’s shorter than the drive from Sydney to the Melbourne feels. The tax system is genuinely one of the simplest and friendliest going. But “simple” doesn’t mean “ignore it,” and as an Australian working there you’ve got two tax systems in play, with the usual risk that the bit you don’t know is the bit that costs you.

Here’s a plain-English run-through of how Singapore tax works for Australians, and how it bumps up against your Australian obligations, which is the half that actually catches people out.

Are you a tax resident of Singapore?

Singapore mostly decides this on a day count. Broadly, you’re a tax resident if you’re physically present or working in Singapore for at least 183 days in the calendar year. There are some concessions that can link stays spanning two or three calendar years, and holding a work pass valid for at least a year generally starts you off as a resident, with your status reassessed if you leave early. The headline, though: 183 days is the line to watch.

It matters because residents and non-residents are taxed quite differently.

Singapore’s tax rates: low, but not nothing

Singapore tax residents pay progressive rates from 0% up to 24%, with that top rate kicking in only on chargeable income above SGD 1 million (the top rate was lifted to 24% from the 2024 year of assessment). Even at solid expat salaries, the effective rate is famously gentle by Australian or European standards, which is a big part of Singapore’s appeal. Residents can also claim personal reliefs.

Non-residents are taxed differently: employment income is taxed at a flat 15%, or the progressive resident rates if that produces more tax, whichever is higher. Most other income, like director’s fees and rental income, is taxed at 24%, and non-residents don’t get the personal reliefs. So the months before you cross the 183-day line can be taxed less generously than you’d expect.

The big one: Singapore’s territorial system

Here’s what makes Singapore such a sweet spot, and it’s genuinely good news. Singapore runs a territorial tax system: broadly, it taxes income earned in or derived from Singapore, and most foreign-sourced income received by individuals is simply not taxed. There’s also no capital gains tax, no wealth tax and no inheritance tax. For someone earning well and investing, that’s a markedly lighter touch than Australia.

But (and you knew a “but” was coming) “Singapore won’t tax it” is only half your story as an Australian. Which brings us to the part that trips people up.

Why your Australian obligations don’t disappear

If you remain an Australian tax resident while in Singapore, the starting point is that Australia taxes your worldwide income, including your Singapore salary, even though Singapore’s rates are lower. And because Singapore taxes that income lightly (or not at all), there’s often little foreign tax to credit against the Australian bill, which can leave a real shortfall. This is the classic trap for Aussies in low-tax hubs: the low Singapore rate is only a true saving if you’re genuinely a non-resident of Australia.

That’s where the Australia-Singapore tax treaty and your residency status come in. Australia and Singapore have a double tax agreement that allocates taxing rights and relieves double taxation. If you’re a resident of both countries under each country’s own rules, the treaty’s tie-breaker decides which one you’re a treaty resident of, and the answer shapes what Australia can tax. So whether your Singapore income is effectively taxed lightly, or topped up to Australian rates, depends entirely on nailing your residency, under both domestic law and the treaty. It’s not a guess to make over a laksa with your make, who’s a bloke who ‘knows a thing or two about tax’; it’s the foundation everything else rests on. We dig into the residency question in our guide on whether you need to lodge an Australian return while overseas.

CPF: good news for most foreign workers

Singapore’s retirement system is the Central Provident Fund (CPF), and here’s a point the old guides routinely garble. Foreigners working in Singapore on an Employment Pass or work permit are generally not required to contribute to CPF, and neither are their employers. CPF is mandatory for Singapore citizens and permanent residents, not for ordinary foreign pass-holders. So unlike China’s mandatory social insurance for foreigners, or Malaysia’s recent move to bring foreign employees into its provident fund, Singapore largely leaves foreign workers out of CPF. One less thing to budget for.

The Singapore tax year and filing

Singapore’s tax year is the calendar year, 1 January to 31 December, and you file in the following year (the “year of assessment”). The filing deadline is generally 18 April for e-filing. Singapore runs a straightforward self-assessment system, and IRAS is known for being efficient and digital.

And here’s the familiar headache for Aussies: Singapore’s January-to-December tax year never lines up with Australia’s July-to-June year, so reconciling the two takes a bit of work. You’ll also file individually; like Australia, Singapore doesn’t do joint spousal returns.

Any other taxes to know about?

A few. Singapore levies an annual property tax on property you own there, charged on the property’s annual value, with higher rates for non-owner-occupied and high-value homes, and there’s a hefty Additional Buyer’s Stamp Duty on property purchases by foreigners. But the big-ticket reassurance stands: no capital gains tax, no wealth tax, no inheritance tax. For a wealth-builder, that’s a genuinely attractive environment, just remember the Australian side may still be interested depending on your residency.

The bottom line

Singapore tax for Australians is refreshingly light: progressive resident rates topping out at 24%, a flat 15% on non-resident employment income, a territorial system that ignores most foreign income, no CGT, and no CPF for most foreign workers. But the low Singapore tax only translates into a real saving if you’re genuinely a non-resident of Australia, because if you’re still an Australian resident, the ATO can top your income up to Australian rates. Get your residency and the treaty position right, and Singapore can be one of the most tax-effective postings going.

Tread your own path. Just work out which country gets to tax each step of it first.

Working in Singapore? The Australian side is where we come in.

Singapore’s own taxes are simple enough, but the moment your residency status and the Australia-Singapore treaty come into play, the picture gets serious. Whether Australia can tax your Singapore income, how the treaty tie-breaker applies, and whether you face a shortfall are exactly the questions that decide how much of that low-tax dream you actually keep.

Our specialist expatriate tax team works with Aussies in Singapore and right across the globe, entirely remotely, so wherever you are, your Australian tax is in safe hands.

Book an appointment with our expat tax specialists today and get your Australian position squared away. A short chat now can save a world of expenses (and bother) later.

General information only. This article doesn’t consider your personal circumstances and isn’t tax or financial advice. Singapore tax rules change over time and are administered by IRAS. Speak to our specialist expatriate tax team about the Australian side, a qualified Singapore adviser about the Singapore side, or another registered tax agent, before acting.

References

1. Inland Revenue Authority of Singapore (IRAS), “Working out my tax residency” (the 183-day test and resident progressive rates of 0% to 24%): iras.gov.sg
2. Inland Revenue Authority of Singapore (IRAS), “Individual income tax rates” (resident rates to 24% from YA 2024, and the non-resident 15% employment / 24% other income rates): iras.gov.sg
3. Central Provident Fund Board, “Who is entitled to CPF contributions” (CPF contributions apply to Singapore citizens and permanent residents, not ordinary foreign employees): cpf.gov.sg
4. Inland Revenue Authority of Singapore (IRAS), “Taxable and non-taxable income” (the territorial system and treatment of foreign-sourced income): iras.gov.sg
5. Australian Taxation Office, “Foreign income tax offset” (credit for foreign tax paid against Australian tax on the same income): ato.gov.au