It is important for individuals to know that all income earned in or derived from Singapore is chargeable to income tax in Singapore. As for overseas income received in Singapore on or after 1 Jan 2004, it is generally not taxable in Singapore, except in certain situations.
Every Singapore individual resident has to file his tax returns for income earned in the previous year by April 18 every year.
Such income may come from various different sources such as follows:
- Trade, business, profession, or vocation
- Property or investments
- Miscellaneous such as annuities, royalties, winnings, or estate or trust income
So it is essential to determine your sources of income first in order for you to check whether what you earned is taxable or not. For example, if you were employed overseas, your income earned is considered foreign-sourced and hence it is not taxable in Singapore.
This understanding of your sources of income will allow you to fill up the tax returns correctly and pay the right amount of tax.
It is always advised for every individual to consult a tax agent to understand more about tax systems.
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