As an American resident working in Singapore, taking care of your US taxes is not a cake walk affair. It is important that you should be aware of which taxes that will affect you and understand your options so as to avoid unwanted issues from the tax authorities.

As a US tax payer, you worldwide income is subject to reporting and taxation. The American tax treatment for US residents living in Singapore for different classes of income can greatly vary as compared to that in US.



There are number of considerations pertaining to US expat tax in Singapore. The income for services rendered in Singapore is subject to taxation. A US expat is considered resident for tax purposes if they have lived or worked in Singapore for at least 183 days. US tax returns for non residentswill be calculated at 15% of their employment rate or the progressive rate table whichever is greater. All the other employment non employment income is taxed at 20%. The country does not impose any taxes on capital gain or inheritance on expats.

However, the country does impose a 3% Goods and services tax on all the domestic consumption purchases.

Social security tax called as Central provident fund is not to be paid by an expats. However, once they have been approved for the permanent residency status by the immigration and checkpoint authority of Singapore, they have eligible to make contributions in CPF. An US expat who becomes permanent resident of the country will have to make contributions into the CPF along with the employer.

If you are an US citizen and self employed in Singapore you are still required to pay US social security and Medicare taxes on your earnings. The individual needs to pay both the employee and the employer portion on their US expat taxes. However, if you are paying into the Singapore’s social security then you are not required to pay US social security tax.



You are considered resident for tax purpose if you have lived or worked in Singapore for at least 183 days in the preceding year. US expats will not be subject to Singapore tax for income earned outside Singapore and if you have lived or worked in Singapore for less than 60 days, none of your income will be subject to Singapore tax, unless you are a director of the company.

If you are an employee in a Singapore based company, your income will be subject to Singapore income tax. For US expats, the income earned in Singapore will also be subject to US expat taxes. Similar to US requirements, self employed individuals operating their business in Singapore must pay taxes on their net profits to Singapore.

Despite lack of expat tax treaty between the two countries, each country offers a tax credit designed to eliminate dual taxation. In US it is called the foreign tax credit and in Singapore it is called unilateral tax credit and both will provide credit for taxes paid to a foreign country.

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USA Expat Taxes