Singapore: Tax treatment of non-resident employees on business travel

Singapore: Tax treatment of non-resident employees

The Inland Revenue Authority of Singapore beginning 1 January 2016 will implement new tax treatment of non-resident employees who are based outside of Singapore and travel to Singapore for business.

Related content

An “acceptable rate” for per diem allowance that can be received by non-resident employees, directors, and entertainers will be allowed. Amounts at this rate or below will not trigger taxation of the allowance in Singapore, and if the amount reimbursed is greater than this rate, only the excess will be taxable in Singapore.

The new tax rules mean that employers do not need to report non-taxable subsistence allowances (i.e., the acceptable per diem rate and accommodation provided) for non-resident employees on business trips. Also, there is no longer a withholding tax obligation for subsistence allowances provided to non-resident directors. However, for other remuneration, tax clearance and reporting requirements still remain in effect.

 

Read an October 2015 report [PDF 177 KB] prepared by the KPMG member firm in Singapore: New Tax Treatment—Non-resident Employees on Business Trips to Singapore

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.