Whether you are sending staff to Singapore or managing long-term residents, we help you get to grips with the basics.

• Overview
• Taxes
• Visas
• National Service Liability
• Social Security Benefits and Programs
• Sickness and Maternity Benefits and Programmes
• Work Injury Benefits and Programmes
• Immigration Automated Clearance System
• Tips

Singapore, one of the three main financial capitals of Asia, along with Tokyo and Hong Kong, is a free and open market. The island’s highly affluent and rapidly ageing society depends heavily on exports, a trend the government is trying to change. However, the government’s ambition, to establish Singapore as Southeast Asia's financial and high-tech hub, has yet to be realized. 

The Inland Revenue Authority of Singapore http://www.iras.gov is the official collection agency of taxes.

Corporate Taxes

A company is taxed at a flat rate on its chargeable income. In 2003 it was 22 percent. With effect from the year of assessment 2002, a partial tax exemption is given up to SGD 100,000 of a company's chargeable income (excluding Singapore dividend) that is subject to tax at the normal corporate tax rate as follows: 75 percent tax exemption for the first SGD 10,000 chargeable income; 50 percent tax exemption for the next SGD 90,000 chargeable income.

A company carrying on a trade or business is required to furnish an estimate of its chargeable income within three months after the end of its accounting period.

An investment holding company deriving only passive source income such as interest, dividend or rental income need not comply with this requirement, as it is not carrying on a trade or business.

If a company's estimated chargeable income (ECI) is not furnished within the stipulated period, a Notice of Assessment based on the Controller's estimation of the company's income may be issued.

A company can furnish its ECI online by using an E-file identification number that is sent yearly to every company before its accounting year-end. Alternatively, a company may file its ECI via an . A copy of the form can also be obtained from the IRAS Fax Express Service at 1800-356 8677.

Double-tax treaties

Singapore has signed treaties with the following nations: Australia, Austria, Bangladesh, Belgium, Bulgaria, Canada, China, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Hungary, India, Indonesia, Israel, Italy, Japan, Korea, Kuwait, Latvia, Luxembourg, Malaysia, Mauritius, Mexico, Myanmar, Netherlands, New Zealand, Norway, Pakistan, Papua New Guinea, Philippines, Poland, Portugal, Romania, South Africa, Sri Lanka, Sweden, Switzerland, Taiwan, Thailand, Turkey, UAE, U.K and Vietnam.

Singapore has limited treaties with Bahrain, Chile, Oman, Saudi Arabia, UAE and the United States and signed but not ratified treaties with Belgium, Egypt, Mongolia and the Russian Federation.

Income tax reporting

Sole-proprietors
Sole-proprietors are required to report their business income in their individual Income Tax Return (Form B or B1). There is no separate form to report the sole-proprietor business, as they are only required to report this income in their individual Income Tax Return.

Partnership business
For a partnership business, the precedent partner is responsible for reporting the partnership income in Form P. All partners should report their share of the partnership income in their individual Income Tax Return (Form B or B1).

However, if you and your spouse are the only partners in the business you are not required to complete Form P. Instead, you and your spouse have to report the share of partnership income in the individual Income Tax Return (Form B or B1).

For any types of business, the same rules apply towards allowable and disallowable expenses.

VISAS

Visa Requirements

Foreigners holding travel documents issued by the following countries will require a visa to enter Singapore: Afghanistan; Algeria; Bangladesh (Except Diplomatic/Official passport holders); Cambodia (Except Diplomatic/Official passport holders for a stay of up to 30 days); Commonwealth of Independent States: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan; Egypt; India (Except Diplomatic/Official passport holders); Iran; Iraq; Jordan (Except Diplomatic/Official passport holders); Laos (Except Diplomatic/Official passport holders for a stay of up to 30 days); Lebanon; Libya; Myanmar (Except Diplomatic/Official passport holders) People's Republic of China; Pakistan; Saudi Arabia; Somalia; Sudan; Syria; Tunisia (Except Diplomatic/Official passport holders); Vietnam (Except Diplomatic/Official passport holders); Yemen.

In addition, visitors holding Hong Kong Document of Identity, Macao Special Administrative Region (MSAR) Travel Permit, Palestinian Authority Passport, Refugee Travel Document issued by the Middle-East countries and Temporary Passport issued by United Arab Emirates will also require a visa to enter Singapore.

Professional Visit Pass application

Foreigners need a Professional Visit Pass (PVP) to undertake short-term professional assignments in Singapore.

As part of Singapore's effort to be a centre for business and culture, Immigration & Checkpoints Authority (ICA) has liberalized the PVP scheme to facilitate the entry of foreign professionals into Singapore for short-term work. As of 1 January 1999, PVP is no longer required for foreigners on short-term assignments, except for the following:

1. Foreigner who is a speaker, organizer, workshop leader/moderator at conferences, seminars, workshops or gathering of a racial, communal, religious, cause-related (e.g. human rights) and political nature;

2. Foreign religious worker coming to Singapore to give religious or other religious-related talks;

3. Foreign journalist or reporter, or an accompanying crew member who is covering an event or writing a story in Singapore;

4. Foreign artiste performing at nightclubs, lounges, pubs and other similar entertainment outlets in Singapore.

The categories of foreign professionals for whom the PVP requirement is waived are noted below.

These foreigners are allowed to carry out their assignments/activities within the validity period of the Social Visit Passes granted at the points of entry upon their arrival in Singapore.

However, the waiver of PVP requirement does not exempt them from seeking the approval of the appropriate authorities concerned. For example, a foreign artist will still have to apply to the Police for a Public Entertainment License to exhibit his work here.

If these foreigners need a longer stay here and the total period (including the SVPs given upon their arrival) is up to three months, they may apply for an extension of stay at:

Visitor Services Centre,
4th Storey, ICA Building,
10 Kallang Road, (Next to Lavender MRT station),
Singapore 208718

Foreign professionals who need to stay for more than three months will have to apply for a work pass from the Employment Pass Department of the Ministry of Manpower.

Foreigners who are uncertain if they need to apply for PVPs should call Customer Service Officers on (+65) 6391 6100. Enquiries may also be faxed to (+65) 6298 0843/6298 0837.

FOREIGNERS WHO ARE EXEMPTED FROM PROFESSIONAL VISIT PASS REQUIREMENT

1. Foreign artistes such as those in cultural troupes and performances.
2. Camera crew, film directors, actors, actresses, foreign models and photographers on location shooting.
3. Foreign persons, speakers and lecturers who are here to attend, conduct or participate in seminars, workshops or conferences (Note: This exemption does not apply to such events which are racial/communal; religious, cause-related or political nature).
4. Professional artists who wish to exhibit their works.
5. Foreign cultural missions.
6. Foreign sportsmen who are engaged by local sports clubhouses or who are here for sports competition/events.
7. Foreign exhibitors in exhibitions or trade fairs.

ELIGIBILITY

Any foreigner who intends to take up short-term assignments in Singapore has to apply for a Professional Visit Pass. You can apply if you are

1. A foreigner who is a speaker, organizer, workshop leader/moderator at conferences, seminars, workshops or gathering of a racial, communal, religious, cause-related (e.g. human rights) and political nature;

2. A foreign religious worker coming to Singapore to give religious or other religious-related talks;

3. A foreign journalist or reporter or an accompanying crew member, covering an event or writing a story in Singapore;

4. A foreign artiste performing at nightclubs, lounges, pubs and other similar entertainment outlets in Singapore.

PROCEDURE

Obtain application Form 14 and Checklist 3 from: Information/Queue Ticket Counter,
Visitor Services Centre,
4th Storey, ICA Building, 10 Kallang Road, (Next to Lavender MRT station),
Singapore 208718

Submit the completed application forms together with the supporting documents to the same address or deposit the application forms in the Deposit Box next to the Information Counter at the ground floor lobby, ICA Building or submit your application online.

TYPES OF APPLICATION

1. Foreigners giving lectures or participating in seminars as speakers.
2. Foreign journalist, reporter or film crew.
3. Foreign performing artiste.
4. Others

FEES

The fee for a Professional Visit Pass is SD 50 per issue for a period less than 3 months and SD 100 per issue for a 3-month period. An additional fee of SD 20 is applicable if visa is required.

SECURITY DEPOSIT

For foreign artistes performing in nightclubs, lounges and pubs, the local sponsor is required to furnish the artiste's security bond and security deposit of SD 3,000 per artiste in the form of Cashier's Order once the application is successful.

PROCESSING TIME

The processing time is about two weeks upon receipt of the completed application forms.

However, some cases may take a longer time to process. Call the Centre to check on the outcome of the application within the normal processing period. Your local sponsor will be notified by post. Call (+65) 6391 6100 if there is no result after two weeks.

Permanent Residency

Permanent Residency can be granted and there are numerous schemes depending on one’s qualifications as listed below. The categories for types of persons eligible include:

(PTS) PROFESSIONALS, TECHNICAL PERSONNEL AND SKILLED WORKERS SCHEME

Most permanent resident applicants come under this scheme. You can apply if you already have a job in Singapore, hold a valid P or Q employment pass, are less than 50, and have been working in Singapore for some time. Applicants can include their spouses and unmarried dependent children (under 21) in the same application. Your application will be assessed under a Points System, which takes into account your:

• Type of employment pass,
• Duration of stay in Singapore,
• Academic qualifications,
• Basic monthly salary,
• Age and kinship ties in Singapore.

Non-Singaporeans can become Singapore Permanent Residents (SPRs) by obtaining an Entry Permit. An application for an Entry Permit is an application for Singapore Permanent Residence.

The following categories of foreigners are eligible to submit applications:

• Spouse and unmarried children (under 21) of a Singapore Citizen (SC)/Permanent Resident (SPR);
• Aged parents of a Singapore Citizen;
• Employment Pass (P or Q Pass) holders;
• Investors/Entrepreneurs;
• Hong Kong residents who satisfy certain guidelines can apply for permanent residence by submitting applications through SMC Management Consultants Pte Ltd in Singapore.

PROCEDURE

Submit your completed application form together with all the required documents personally to:

Permanent Resident Services Centre
5th Storey, ICA Building
10 Kallang Road
(Next to Lavender MRT station)
Singapore 208718

(The Permanent Resident Services Centre can also inform you about (LPR) Landed Permanent Residence, (AIP-PR) Approval-in-Principle for Permanent Residence, Foreign Artistic Talent Scheme and Deposit Scheme.)

DOCUMENTS REQUIRED

Most of these forms are available for download at: http://www.ica.gov.sg

1. Wife/Child of a SC/SPR
   

   One set of completed Form 4 obtainable at the Permanent Resident Services Centre. You may also download the form. Applicant is required to complete Part A to Part E and Part G and local sponsor to complete Part F and Part H of the application form (Form 4);

   You will also need the Accompanying Notes to Form 4. This will list the supporting documents you need to submit with your application.

2. Husband of a SC/SPR
   

   A female Singapore Citizen or Permanent Resident may sponsor her husband for permanent residence. Each application will be considered on its own merits and requires two sets of completed Form 4A (one original and one photocopy) instead of the Form 4. You may obtain the form at the Permanent Resident Services Centre or download a copy.

   You will also have to download the Accompanying Notes to Form 4A. This will list the supporting documents you need to submit with your application.

3. Aged parent of an SC
   

   1 set of completed Form 4 (an original) obtainable at the Permanent Resident Services Centre. You may also download the form.

   You will also need Accompanying Notes to Form 4. This will list the supporting documents that will have to be submitted together with your application.

4. Employment Pass (P or Q Pass) Holder
   

   If you are applying under the Professionals/Technical Personnel and Skilled Workers Scheme, you will need to submit 2 sets of completed Form 4A (one original and one photocopy). You may obtain the form at the Permanent Resident Services Centre or download a copy.

   You will also need the Accompanying Notes to Form 4A. This will list the supporting documents that will have to be submitted together with your application.

5. Investor/Entrepreneur
   

   Foreign investors with substantial capital and good entrepreneurial track records may apply for permanent residence under the SGD 1.5 million Deposit Scheme. For more details, please contact: Singapore Economic Development Board, 250 North Bridge Road, #24-00 Raffles, City Tower, Singapore 179101 Tel: (+65) 6336 2288

6. Hong Kong Resident
   

   Persons born in Hong Kong or who can show proof that they have or used to have rights of abode in Hong Kong may apply for in-principle approval for permanent residence by submitting an application through: SMC Management Consultants Pte Ltd, 51 Cuppage Road, #04-05 StarHub Centre, Singapore 229469 Tel: (+65) 6722 1766, Fax: (+65) 6734 8373

FEES

The fee for an Entry Permit is SGD 100 and the fee for a Re-Entry Permit is SGD 10 per year. For foreigners requiring a visa, the visa fee is SGD 20 per issue.

PROCESSING TIME

The processing time for an application is three months. Applicants will be informed of the outcome by mail. Applicant should notify us if there are any changes in his/her address.

Under the Enlistment Act, all male Singapore Citizens and Permanent Residents are liable for National Service (NS) at 16½. They are required to serve two or two and a half years of full-time National Service (NSF), followed by 40 days of Operationally Ready National Service (NS) per year till the age of 50 (for officers) or 40 (for other ranks).

More information is available from:

Central Manpower Base,
3 Depot Road, #03-07,
Singapore 109680 

Coverage

Employed persons earning more than SD 50 a month are entitled to social security benefits in Singapore. Some self-employed workers qualify too. Members of approved equivalent private plans are excluded. Special pension systems exist for public employees.

Source of Funds

Insured person:
No contribution if monthly earnings are less than SGD 200; contribution of five percent plus one third of amounts over SGD 200 if monthly earnings are between SGD 200 and SGD 363; contribution of 20 percent if monthly earnings are over SGD 363. Lower contribution rates for workers of 55 or older.

Employer:
No contribution is needed if earnings below SGD 50 a month. If SGD 50 or over, contributions are ten percent of monthly earnings. Lower contribution rates for employees of 55 or older.

Government:
None.

Qualifying Conditions

Old-age benefit:
from 55.

Disability benefit:
Permanent incapacity for work.

Survivor benefit:
Nomination as beneficiary by insured.

Benefit

Old-age benefit:
Lump sum equal to total employee and employer contributions, plus at least 2.5 percent compound interest (actual rate is linked to average commercial savings and fixed deposit rates adjusted every January 1 and July 1), less the amount set aside for medical contingencies (see Medical Care).

In addition, at 55, members must leave SGD 60,000 (as of July 1999) in the retirement account (part in a prescribed amount of cash, the remainder can be pledged property) to ensure continued income from 62 years.

Disability benefit:
Lump sum equal to total employee and employer contributions, plus at least 2.5 percent compound interest (actual rate is linked to average commercial savings and fixed deposit rates, adjusted every January 1 and July 1), less the amount set aside for medical contingencies (see Medical Care).

Survivor benefit:
Lump sum equal to total employee and employer contributions, plus at least 2.5 percent compound interest (actual rate is linked to average commercial savings and fixed deposit rates, adjusted every January 1 and July 1), less the amount set aside for medical contingencies (see Medical Care). Payable to nominated survivors or legal heirs.

Administrative Organization

Ministry of Manpower, general supervision.
Central Provident Fund, custody of fund and administration of programme - managed by tripartite board and Chairman.

Coverage

Cash benefits (employer liability):
All workers.

Medical care (provident fund):
Employed persons and some self-employed workers.

Source of Funds

Insured person:
Cash benefits (employer liability): None. Medical care (provident fund): Employed persons: three to four percent (depending on age) of monthly salary set aside for Medisave account to cover costs of hospitalisation and medical expenses. Maximum SGD 180-SD 240 per month. Self-employed: Annual contribution of six percent to eight percent (depending on age) of annual net income. Maximum SGD 4,320-SGD 5,760 per year.

Employer:
Cash benefits (employer liability): Whole cost. Medical care (provident fund): three percent – four percent (depending on employee's age) of employee's monthly salary set aside for employee's Medisave account. Maximum SGD 180-SGD 240 per month.

Government:
Provident fund: No fixed amount, workers are subsidized when using certain classes of hospital wards.

Qualifying Conditions

Employer liability-Sickness benefit:
At least six months' employment.

Maternity benefit:
at least 180 days employment immediately preceding confinement (limited to first two children).

Medical benefits:
Provident fund: Holders of Medisave account. Persons over 55 are required to maintain balance of SGD 17,000 as of July 1999 (increasing by SGD 2000 annually until reaching SGD 25,000 in July 2003) in Medisave account for future hospitalisation costs.

Benefit

Sickness benefit:
Employer liability: 14 days of paid sick leave a year, or up to 60 days if worker hospitalised.

Maternity benefit:
Employer liability: 100 percent of wages for up to four weeks before and four weeks after confinement.

Workers' Medical Benefits:
Outpatient treatment and inpatient hospital care, including day-surgery treatment, in government hospitals, and prescribed medicines. Costs deducted from balance in Medisave account for approved treatments.

Dependents' Medical Benefits:
Same as for family head.

Coverage

All manual labour, except domestic servants, casual employees, and family labour; salaried employees earning less than SGD 1,600 a month. Special programme available from the police.

Qualifying Conditions

Work-injury benefits:
No minimum qualifying period.

Temporary disability benefit:
100 percent of earnings during first 14 days (additional 60 days if hospitalised); 2/3 of monthly earnings thereafter. Payable from first day of incapacity for a maximum of one year.

Permanent disability benefit:
Lump sum of six to 12 years' earnings (according to age), if totally disabled. Maximum, SGD 147,000. Minimum, SGD 49,000. Constant-attendance supplement: 25 percent of grant.

Benefit

Partial disability:
Lump sum in proportion to degree of incapacity, or according to schedule in law for specified injuries.

Medical benefits:
Necessary medical treatment, hospitalisation, appliances, and medicines. May be provided in government facility.

Survivor benefit:
Lump sum of four to nine years' earnings, according to age of deceased. Maximum, SGD 111,000. Minimum, SGD 37,000. Payable to eligible dependents.

Administrative Organization

Ministry of Manpower, general supervision.
Commissioner for Labour, enforcement of law, approval of agreements between employers and claimants, and allocation of survivor grants. Employers must insure liability with private companies; Ministry may exempt any employer or class of employers from compulsory insurance.

The Immigration Automated Clearance System (IACS) was introduced to provide efficient and effective immigration clearance at checkpoints by harnessing biometrics and smart card technologies. The following categories of travellers may apply: Singapore Citizens; Singapore Permanent Residents; Holders of Student's Pass; Holders of Long Term Social Visit Pass; Holders of Employment Pass; Holders of Dependant Pass; Holders of Work Permit Pass.

No application form is needed. Frequent travellers who wish to use IACS can apply in person with a valid travel document(s) and a recent colour passport-photograph (45 mm x 35 mm) at one of the following locations:

• The Changi Airport (Access Card Centre, 1st Storey Arrival Hall, Passenger Terminal Building 2; ICA Building, (10 Kallang Road, Singapore 208718),
• Singapore Cruise Centre;
• Tanah Merah Ferry Terminal;
• the bus passenger halls of the Woodlands and Tuas Checkpoints.

An excellent resource for expats relocating to Singapore is: www.expatsingapore.com

August 2003 (updated November 2005)

This information is subject to change and therefore we advise that you verify the details with the appropriate organisation or governing body.

Elise Krentzel is an Amsterdam-based freelance writer.