Singapore: Tax treatment of non-resident employees | KPMG | GLOBAL

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.


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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 prepared by the KPMG member firm in Singapore: New Tax Treatment—Non-resident Employees on Business Trips to Singapore

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