FAQs

Eligibility: the EP allows foreign professionals, managers and executives to work in Singapore if they meet the eligibility criteria. Quota: there is no foreign worker levy or quota required. Validity: the EP validity is generally up to 2 years for new applications and 3 years for renewals. Conditions: • The fixed monthly qualifying salary starts at S$ 5,600 and increases progressively with age. • The EP is tied to the employer who issued the pass. • All employers must demonstrate that they have fairly considered all jobseekers.

Eligibility: the S Pass offers flexibility to employers to hire skilled workers (Associate Professionals and Technicians (APTs)) who may not meet the Employment Pass criteria. Quota: the S Pass is subject to a quota and monthly levy payments. Conditions: • The fixed monthly qualifying salary starts at S$ 3,300 and increases progressively with age. • The S Pass is tied to the employer who issued the pass. • All employers must demonstrate that they have fairly considered all jobseekers.

Eligibility: the PEP offers flexibility to or high-earning Employment Pass holders or overseas foreign professionals (fixed monthly salary of at least S$ 22,500). Quota: there is no foreign worker levy or quota required. Validity: the PEP validity is fixed to 3 years, one-time only (the PEP holder will not be able to get another PEP once it has expired or cancelled). Conditions: • The PEP holder cannot start his/her own business and conduct any entrepreneurial activities (sole proprietor, partner or where a director is also a shareholder in an ACRA-registered company). • There are strict conditions to be able to keep the PEP (not be unemployed for more than 6 months at any point and earn a fixed salary of at least S$ 270,000 per calendar year, regardless of the number of months of employment). • The PEP is not tied to an employer and it offers a greater flexibility (no need to reapply for a pass if you change jobs within the period of validity of the PEP).

Eligibility: the ONE Pass is a personalised pass for top talent in all sectors, such as business, arts and culture, sports, academia and research (requirements include a fixed monthly salary of S$ 30,000 under an employer for the 12 consecutive months leading up to the date of application or prospective employer based in Singapore, or outstanding achievements in certain sectors). Quota: there is no foreign worker levy or quota required. Validity: the ONE Pass validity is 5 years for new applications and 5 years for renewals. Conditions: • The ONE Pass is not tied to an employer and it offers a greater flexibility to concurrently start, operate and work for multiple companies at any one time (subject to your employment contract terms, where relevant).

Eligibility: the DP allows legally married spouses and unmarried children under 21 years old (including legally adopted children) of Employment Pass (EP), S Pass, EntrePass, Personalised Employment Pass (PEP) or Overseas Networks & Expertise Pass (ONE Pass) holders to join them in Singapore. Quota: there is no foreign worker levy or quota required. Conditions: • The DP is subject to eligibility criteria. • The DP holder is not allowed to work in Singapore without a valid work pass (with one exception in a very special situation where the DP holder is employed by an overseas company and observes strict specific conditions).

Eligibility: the LTVP allows legally common-law spouses, step-children or handicapped children, parents of Employment Pass (EP), S Pass, EntrePass, Personalised Employment Pass (PEP) or Overseas Networks & Expertise Pass (ONE Pass) holders to join them in Singapore. Quota: there is no foreign worker levy or quota required. Conditions: • The LTVP is subject to eligibility criteria.

Eligibility: • For all DP holders who are business owners: the LOC allows all DP holders who are business owners to work in Singapore if eligible (the sole proprietor of an ACRA-registered business, a partner of an ACRA-registered business and a company director with at least 30% shareholding in an ACRA-registered business). • For eligible DP holders to work as employees: only the spouses under DP of ONE Pass holders can obtain a LOC to work as an employee up to the expiry date of their DP (the spouses under DP of the other type of pass holders except ONE Pass can obtain a Work Permit (WP) to work as an employee - please refer to the Work Permit section). Quota: there is no foreign worker levy or quota required. Validity: • For all DP holders who are business owners: • for 1st time applications the LOC validity is one year from issue date or up to the expiry date of the DP (whichever is shorter) • for renewals the LOC validity is up to the expiry date of the DP. • For eligible DP holders to work as employees: only the spouses under DP of ONE Pass holders can obtain a LOC to work as employees and the LOC validity is up the expiry date of the DP. Conditions: • For all DP holders who are business owners: to be eligible for a renewal of the LOC, the DP holder needs to hire at least one local employee (Singaporean or Permanent Resident) who earns at least the prevailing Local Qualifying Salary (currently S$ 1,600) and receives CPF contributions for at least 3 calendar months at renewal time.

Eligibility: the WP allows DP holders (the spouses of Employment Pass, Spass, Personalised Employment Pass holders) to work as an employee. (Regarding the DP holders who are spouses of ONE Pass holders please refer to the Letter of Consent). Quota: the WP is subject to a quota and monthly levy payments. Validity: the duration of the WP duration is tied to the validity of the DP.

Tax residents For tax resident individuals, Singapore's personal income tax rates are progressive, meaning individuals with higher income are taxed at a higher rate. The current highest personal income tax rate is at 24%. The progressive tax rates are available on IRAS site Non tax residents Regarding employment income of a non-resident individual is taxed at the flat rate of 15% or the progressive resident tax rates, whichever is the higher tax amount. Regarding director's fee, consultation fee and all other income, the tax rate for non-resident individuals is currently at 24%. It applies to all income including rental income from properties, pension and director's fees, except employment income and certain income taxable at reduced withholding rates.

A person is a tax resident for a particular Year of Assessment in Singapore if this person is: • Singapore Citizen or Singapore Permanent Resident (SPR) who normally resides in Singapore except for temporary absences; or • a foreigner who has stayed/worked in Singapore: 1. for at least 183 days in the previous calendar year; or 2. continuously for 3 consecutive years; or • a foreigner who has worked in Singapore for a continuous period straddling 2 calendar years and your total period of stay* is at least 183 days. This applies to foreign employees who entered Singapore but excludes directors of a company, public entertainers or professionals. * including the physical presence immediately before and after your employment. Foreigners issued with a work pass that is valid for at least 1 year will also be treated as a tax resident. However, the tax residency status will be reviewed at the point of tax clearance when the employment is ended based on the tax residency rules. If the stay in Singapore is less than 183 days, the foreigner will be regarded as a non-resident.

Generally, an individual is required to submit the Income Tax Return if in the preceding calendar year if: 1. the individual's total income is more than $22,000; or 2. the individual has self-employment income with a net profit more than $6,000; or 3. the individual is a non-resident who derived income from Singapore. Income Tax Return must be filed by all individuals who have received a letter, form or an SMS from IRAS informing them to do so, regardless of how much they earned in the previous year or whether their employer is participating in the Auto-Inclusion Scheme (AIS) for Employment Income.

The individual Income Tax Return filing due date is 18 April. If additional filing time is needed an extension of up to 14 days may be granted.

Failure to file the individual Income Tax Return by the due date is an offence. IRAS may take the following recovery actions for failing to file by the due date: • Issue an estimated Notice of Assessment. The estimated tax must be paid within 1 month. • Offer to compound the offence. • Issue a Notice to Attend Court/Summons.

The corporate tax rate in Singapore is capped at flat 17%. Some attractive tax incentives like partial tax exemptions can reduce the tax amount on the first S$ 200,000 of chargeable income. These tax incentives are higher on the first 3 years for new eligible start-up companies.

There are two main deadlines for the corporate tax filing: • Estimated Chargeable Income (ECI) filing is due 3 months after the financial year end (there is no need to file the ECI for a company if it is nil and the company's annual revenue is $5 million or below). • Final Corporate Income Tax Return must be filed by the deadline of 30 November of the year following the financial year end.

Not all expenses are tax deductible. Generally, tax deductions may be claimed on expenses wholly and exclusively incurred in the production of income. However, some expenses are never tax deductible, as for example: • depreciation expenses (the company may claim instead capital allowances) • motor vehicle expenses (S-plated, Q-plated and RU-plated cars) • personal expenses • private hire car etc.

YES, on-time filing is required even if the company did not carry on business or has incurred a loss. Failure to file the Income Tax Return by the deadline is an offence under the Income Tax Act 1947 and may result in penalties of up to $5,000. Directors remain responsible for accurate and timely filing of the company’s Income Tax Return, even if a tax agent has been engaged. If the company engaged a tax agent, it is the company's resposability to coordinate with them early to meet filing requirements.

Failure to file the Corporate Income Tax Returns together with financial statements and tax computation by the due date is an offence. IRAS may take the following recovery actions for failing to file by the due date: • Issue an estimated Notice of Assessment. The company must pay the estimated tax within 1 month. • Offer to compound the offence. • Issue a Section 65B(3) notice to the company director to submit the required information in the Corporate Income Tax Returns to IRAS. • Issue a Notice to Attend Court/ Summons to the company or persons responsible for running of the company (including the directors). A dormant company is still required to e-File the Form for Dormant Company unless it has been granted a waiver of Corporate Income Tax Return submission.

Keeping accurate proper accounting in Singapore are essential for several reasons: • Ensure compliance with legal and regulatory requirements: in Singapore, business accounting and financial reporting are subject to strict regulations. The Singapore Financial Reporting Standards (SFRS) require firms to prepare financial statements that are compliant with these standards and maintain correct accounting records. • Provide insights into financial health: having accurate financial information aids in better decision-making.

All Singapore Private Limited companies are required to prepare FS (either audited or unaudited), except for specific dormant entities.

Private Limited companies must file their Annual Returns within 7 months after the end of their financial year. All companies, including inactive and dormant companies, are required to file Annual Returns. The Financial Statements must be submitted to ACRA as part of the Annual Return.

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The small company concept determines if a company is exempted from statutory audit. A company qualifies as a small company if: (a) it is a private company in the financial year in question; and (b) it meets at least 2 of 3 following criteria for immediate past two consecutive financial years: 1. total annual revenue ≤ $10m; 2. total assets ≤ $10m; 3. no. of employees ≤ 50. For a company which is part of a group: (a) the company must qualify as a small company; and (b) entire group must be a “small group” to qualify to the audit exemption. For a group to be a small group, it must meet at least 2 of the 3 quantitative criteria on a consolidated basis for the immediate past two consecutive financial years. Where a company has qualified as a small company, it continues to be a small company for subsequent financial years until it is disqualified. A small company is disqualified if: (a) it ceases to be a private company at any time during a financial year; or (b) it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years. Where a group has qualified as a small group, it continues to be a small group for subsequent financial years until it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.

Both locals and foreigners are welcome to register a company in Singapore, with no restrictions on ownership. The shareholders can be individuals or legal entities.

A Private Limited Company: • must appoint a Company Secretary within 6 months of company incorporation • must appoint a company auditor within 3 months of company incorporation, unless legally exempt • must file annual returns and comply with statutory requirements for annual general meetings (AGMs), etc • must have at least 1 shareholder and maximum of 50 shareholders • must have at least 1 ordinarily resident director (corporate directors are not allowed) • must have at least 1 local registered business address • must have a share capital of minimum of 1 Singapore dollar

The Corporate Secretary must be a resident of Singapore and possess the necessary qualifications and experience.

No, all private limited companies in Singapore must appoint a Company Secretary, regardless of size. Even if the business is small, it is still legally required to maintain compliance with ACRA’s regulations.

The Company Secretary is responsible for ensuring the company compliance with Companies Act and regulatory obligations and filings depending on the nature and size of the business, including: • preparing constitutions and resolutions • organising Board of Director Meetings and Annual General Meetings (AGMs) • handling appointments and resignations of Directors/Auditors/Officers • applying for changes in business activities, financial year-end, company name, address • maintaining statutory registers books and records • sending reminders regarding compliance deadlines • preparing and file annual returns with ACRA

Must be a physical place (no P.O. Boxes allowed)