Non resident Director who received director fees
Who is consider as Non resident director ?
Non resident director refer to someone who do NOT have legal visa to stay long in Singapore . or who stay in Singapore LESS THAN 183 days
Is Employment Pass holder consider as Non resident director ?
No, because they have valid working visa in Singapore .
After received director fees, what need to be declare ?
What is withholding tax ?
How to declare ?
A person must withhold and pay the withheld tax to IRAS when certain types of payment (e.g. interest, royalty, services etc.) are made to a non-resident.
Before declaration of withholding tax, you need to confirm :
- Approval date of the director fees
- Director fees amount
- Tax resident of the Company
Only Singapore tax resident company is required to declare withholding tax
What is withholding tax rate ?
22 % ( will increase to 24% with effect from Jan 2023)
What if local director received director fees ?
They will be tax based on local resident tax rate.
List of Tax Obligation