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Understanding Income Tax in Singapore

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Whether you are a local or foreign employee, Remote People is here to support you in staying compliant and ensuring your payroll is processed accurately and on time.

What Remote People Does

For Local Employees: Monthly, we track your salary, bonuses, and benefits. No tax is deducted from your pay. Annually by March 1, we submit your income details to the Inland Revenue Authority of Singapore (IRAS) via the Auto-Inclusion Scheme (AIS). This means your income is automatically included in your tax return.

For Foreign Employees (EP, S Pass, Work Permit holders, etc.): Monthly: No tax is deducted from your salary. Annually: We submit your income details to IRAS via AIS by March 1. When You Leave: We file Form IR21 (Tax Clearance) to IRAS to report your income. Your final month's salary is withheld until IRAS confirms your tax clearance. Remote People will remit the tax amount to IRAS within 10 days of receiving the Directive to Pay Tax. Your final salary is released once IRAS confirms clearance.

What You Need to Do

1. Check Your Income Details: By March, log in to the myTax Portal to review the income details we have submitted. 2. Declare Additional Income: If you have other sources of income or want to claim tax reliefs, file your tax return by April 18 to May 18. 3. Pay Your Taxes: Once you receive your Notice of Assessment (NOA), pay the amount by the due date. 4. If You Disagree with Your Tax Bill: Pay First, Dispute Later. Remote People is not involved in the refund process. Remote People can assist with filing objections or liaising with IRAS as a paid service.

Key Things to Remember

  • Remote People submits your income details via AIS by March 1.

  • For foreign employees, final salary is withheld during offboarding until IRAS confirms tax clearance.

  • You must pay assessed tax first, even if you plan to object.

  • You can file objections directly with IRAS or request Remote People's help as an optional service.

Why This Matters

We handle the paperwork to ensure everything is accurate and timely. Your role is to check your details, declare any extra income, and pay your taxes. Together, we make tax season smooth and stress-free.

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