Tax for Non-Resident Director

Whether withholding tax is applicable depends on the residency status of the board director.

Board Director

For tax purposes, a board director is a member of the board of directors of a company.

Residency Status of Board Director

Executive Director

A board director may also take on an executive role (for example, Chief Executive Officer, Chairman and Managing Director) and is involved in the daily running of the business operations. The remuneration derived by a non-resident director in his capacity as an executive director is not subject to withholding tax.

To understand the tax obligations of foreigners in Singapore holding the position of executive director, please refer to foreigners working in Singapore .

Taxable Income

Director’s remuneration refers to both cash and non-cash payments and includes:

• salary;
• bonus;
• director’s fees;
• accommodation provided and
• gains from stock options or other share ownership plans

See also Tax Treatment of Employee Remuneration (allowances, benefits-in-kind etc).

Remuneration Received in the Capacity as a Board Director

Receive director’s remuneration/fees* in the capacity as a non-resident director of a company which is a tax resident in Singapore – Taxed at 22%.

Gains from Exercise of Stock Options (ESOP) or Vesting of Stock Awards (ESOW)

Receive gains from ESOP/ESOW in the capacity as a non-resident director of a company which is a tax resident in Singapore.

The employer must file the  Form IR21A to report the  gains from ESOP/ESOW within 30 days from the date of exercise, assignment, release or acquisition of the shares. SingPass holders can also submit the Form IR21A here.

The director will receive a tax bill on the amount of tax to pay.