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Why Grant Thornton
Whether you’re growing in one market or many, looking to operate more effectively, managing risk and regulation, or realising stakeholder value, our firms can help.
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Culture and experience
Grant Thornton’s culture is one of our most valuable assets and has steered us in the right direction for more than 100 years.
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Global scale and capability
Beyond global scale, we embrace what makes each market unique, local understanding on a global scale.
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Join our network
In a world that wants more options for high quality services, we differentiate in the market to grow sustainably in today’s rapidly changing environment.
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Leadership governance and quality
Grant Thornton International Ltd acts as the coordinating entity for member firms in the network with a focus on areas such as strategy, risk, quality monitoring and brand.
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Africa
24 member firms supporting your business.
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Americas
31 member firms, covering 44 markets and over 20,000 people.
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Asia-Pacific
19 member firms with nearly 25,000 people to support you.
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Europe
53 member firms supporting your business.
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Middle East
8 member firms supporting your business.
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Business consulting services
Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle.
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Business process solutions
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
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Business risk services
The relationship between a company and its auditor has changed. Organisations must understand and manage risk and seek an appropriate balance between risk and opportunities.
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Cybersecurity
As organisations become increasingly dependent on digital technology, the opportunities for cyber criminals continue to grow.
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Forensic services
At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
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Mergers and acquisitions
We work with entrepreneurial businesses in the mid-market to help them assess the true commercial potential of their planned acquisition and understand how the purchase might serve their longer-term strategic goals.
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Recovery and reorganisation
Workable solutions to maximise your value and deliver sustainable recovery.
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Transactional advisory services
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
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Valuations
We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
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IFRS
At Grant Thornton, our IFRS advisers can help you navigate the complexity of financial reporting from IFRS 1 to IFRS 17 and IAS 1 to IAS 41.
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Audit quality monitoring
Having a robust process of quality control is one of the most effective ways to guarantee we deliver high-quality services to our clients.
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Global audit technology
Our global assurance technology platform provides the ability to conduct client acceptance, consultations and all assurance and other attestation engagements.
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Corporate and business tax
Our trusted teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
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Direct international tax
Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
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Global mobility services
Through our global organisation of member firms, we support both companies and individuals, providing insightful solutions to minimise the tax burden for both parties.
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Indirect international tax
Using our finely tuned local knowledge, teams from our global organisation of member firms help you understand and comply with often complex and time-consuming regulations.
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Transfer pricing
The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public
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Africa tax desk
A differentiating solution adapted to the context of your investments in Africa.
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Banking Holding banking to account: the real diversity and inclusion pictureWe explore how the banking sector can continue to attract, retain and nurture women to build a more diverse and inclusive future.
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Sustainability From voluntary to mandatory ESG: How banks can future-proof their operationsAs we move from voluntary ESG initiatives to mandatory legislation, we explore what the banking sector needs to prioritise.
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IFRS IFRS 9 - Audit of Expected Credit LossesGPPC releases The Auditor’s response to the risks of material misstatement posed by estimates of expected credit losses under IFRS 9
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growthiQ Steering your company to long-term successHistory has something important to tell us about the difficulties of steering a business to long-term success – through seismic shifts in technology, consumer demands and product development. With that in mind it’s unsurprising that over half the world’s largest companies in the early 1900s had shut their doors by the late 1990s. Some, however, have endured.
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International Financial Reporting Standards Implementation of IFRS 17 ‘Insurance Contracts’The auditor’s response to the risks of material misstatement arising from estimates made in applying IFRS 17 ‘Insurance Contracts’
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IFRS Get ready for IFRS 17After twenty years of development the IASB has published IFRS 17 ‘Insurance Contracts’, find out more.
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - Sector analysis Clear patterns of damage from COVID-19 across the industriesThe index results for 12 key sectors of the mid-market reveal just how much or little the various parts of the economy were impacted by COVID-19.
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Not for profit Mission: possible – putting impact at the heart of charityGlobal charitable continues to decline and charity leaders are increasingly looking at their own unique impact journey.
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Access to finance Raise finance to invest in changePrepare your business to raise finance to invest in change.
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Private equity firms Private equity in the mid-market: reshaping strategies for 2021When the global COVID-19 pandemic stormed across the globe in early 2020, the private equity sector was hit hard but deals are coming back to the market.
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Mid-market businesses Getting ready for private equity investmentOur specialists explore how private equity firms are now working with their portfolios and how the mid-market can benefit from investment.
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Mid-market businesses Myth-busting private equityNervous about partnering with Private Equity? We explore some of the common myths we come across when speaking to mid-market businesses about PE investment.
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Public sector Helping build the government of tomorrow, todayLearn about the Grant Thornton US public sector team.
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - Sector analysis Clear patterns of damage from COVID-19 across the industriesThe index results for 12 key sectors of the mid-market reveal just how much or little the various parts of the economy were impacted by COVID-19.
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Industries European Real Estate PodcastJessica Patel, Tax Partner at Grant Thornton UK speaks with tax partners and directors across the network to share their insights on the real estate market and some of the challenges.
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Industries European Real Estate PodcastJessica Patel, Tax Partner at Grant Thornton UK speaks with tax partners and directors across the network to share their insights on the real estate market and some of the challenges.
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Retail How retail is positioning for successCOVID-19 provided some hard lessons for the retail industry. It is time to turn those into sustainable and well executed growth strategies in 2021.
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Telecoms Can tech and telecom leverage economic headwindsAs most businesses brace for an economic downturn, tech and telecom could see new prospects. But, to turn the headwinds to your advantage, you need to find your unique opportunities and risks.
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Technology Mid-market tech companies lead the way on diversity and inclusionWe explore how the mid-market tech sector can continue to build and nurture a culture that’s increasingly more diverse and inclusive for women.
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Tax Resetting global tax rules after the pandemicBusinesses are seeing rising challenges, and finance heads are dealing with a range of new measures. To say the next 12 months are critical for businesses is an understatement.
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TECHNOLOGY International tax reform: the potential impact on the technology industryIn this article, we’ve summarised key elements of the global tax reform proposals, their potential impact on technology industry and advice from our digital tax specialists on what technology companies can do to prepare.
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Telecoms Can tech and telecom leverage economic headwindsAs most businesses brace for an economic downturn, tech and telecom could see new prospects. But, to turn the headwinds to your advantage, you need to find your unique opportunities and risks.
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TMT TMT industry: Fully charged or on standby?Our research revealed five key trends that resonated with Technology, Media and Telecoms (TMT) industry leaders around the world. We asked a panel of our experts from UK, US, India Ireland and Germany, to give us their reaction to the findings.
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Cybersecurity One size fits nothingTechnology companies must adopt a new approach to digital risk: those that successfully develop a reputation for digital trust by demonstrating an unwavering commitment to cyber security and data privacy will be able to carve out a competitive advantage.
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Technology, media & telecommunications Why it’s time for a 5G reality checkFigures suggest the mobile sector is maturing. While data usage continues to soar, mobile revenues are expected to flatten out over the next few years.
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International business Mid-market businesses lifted by rising tide of optimismOptimism among global mid-market business leaders rose to 67% in the first half of this year and they are markedly more optimistic about their prospects with global optimism having increased by 8%.
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Global business pulse - industry analysis Mid-market recovery spreads to more industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
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Hotels COVID-19: Checking in with the hotel industry one year onCOVID-19 provided some hard lessons for the hotel sector. It is time to turn those into sustainable and well executed growth strategies.
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Global business pulse - industry analysis A very uneven recovery across industriesThe index results for 13 key industries of the mid-market reveals a very uneven recovery from COVID-19
- By topic
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Women in Business 2024
2024 marks the 20th year of monitoring and measuring the proportion of women occupying senior management roles around the world.
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COP28: Mid-market firms should seize the opportunity from adaption and innovation
COP28 was the first time there has been a global stocktake on progress against the Paris Agreement.
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Scanning the horizon: Mid-market sets sights on global trade growth
The latest International Business Report (IBR) data shows that mid-market businesses have high expectations for global trade.
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Mid-market businesses less optimistic, despite record numbers expecting increased profitability
A closer examination of the data offers some explanation of this apparent contradiction.
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Women in tech: A pathway to gender balance in top tech roles
Grant Thornton’s 2024 Women in Business data suggests we are far from achieving parity within the mid-market technology sector.
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Women in leadership: a pathway to better performance
What makes the benefits of gender parity compelling is the impact it can have on commercial performance.
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Women in Business 2024
2024 marks the 20th year of monitoring and measuring the proportion of women occupying senior management roles around the world.
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Women in business: Regional picture
We saw an increase in the percentage of senior management roles held by women, on a global level, but there are some significant regional and country variations.
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Pathways to Parity: Leading the way
To push towards parity of senior management roles held by women, who leads within an organisation is vital.
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Generating real change with a long-term focus
The most successful strategy to achieve parity of women in senior management is one which stands alone, independent of an ESG strategy.
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People at the heart of great business
Businesses have started to put guidelines and incentives in place, focused on driving employees back to the office.
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Focusing and developing a solid strategy around diversity, equity and inclusion
Grant Thornton Greece is pioneering a growing set of diversity, equity and inclusion (DE&I) initiatives that centre around three strategic pillars.
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Ten considerations for preparing TCFD climate-related financial disclosures
Insights for organisations preparing to implement the International Sustainability Standards Board (ISSB)’s Standards.
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COP28: Mid-market firms should seize the opportunity from adaption and innovation
COP28 was the first time there has been a global stocktake on progress against the Paris Agreement.
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Transition Plan Taskforce publishes its final disclosure framework
As organisations in the private sector make commitments and plans to reach net zero, there's a growing need for stakeholders to be able to assess the credibility of their transition plans.
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Promoting ESG excellence through tax
ESG considerations have never been more important for an organisation’s long-term success, but how can tax be used to add value to an ESG agenda?
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International business: Mid-market growth and expansion
The mid-market looks to international business opportunities for growth.
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Top five constraints to international business in the mid-market
Top five major constraints that are testing the mid-market’s ability to grow their businesses internationally.
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Brand and international marketing – breaking global barriers
Brand has been identified as a key driver of mid-market success when looking to grow and develop international business.
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The key to international business: Investing in people
How can recruitment and retention help grow international business?
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Building resilience in international business
Evolving supply chains and trade patterns amid ongoing global uncertainty.
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IFRS Alerts
IFRS Alerts covering the latest changes published by the International Accounting Standards Board (IASB).
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Example Financial Statements
General guidance for preparers of financial statements that supports the commitment to high quality, consistent application of IFRS.
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Insights into IFRS 2
Insights into IFRS 2 summarises the key areas of the Standard, highlighting aspects that are more difficult to interpret and revisiting the most relevant features that could impact your business.
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IFRS 3
Mergers and acquisitions are becoming more common as entities aim to achieve their growth objectives. IFRS 3 ‘Business Combinations’ contains the requirements for these transactions.
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IFRS 8
Our ‘Insights into IFRS 8’ series considers some key implementation issues and includes interpretational guidance in certain problematic areas.
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IFRS 16
Are you ready for IFRS 16? This series of insights will help you prepare.
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IAS 36
Insights into IAS 36 provides assistance for preparers of financial statements and help where confusion has been seen in practice.
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IFRS 17
Explaining the key features of the Standard and providing insights into its application and impact.
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Pillar 2
Key updates and support for the global implementation of Pillar 2.
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Global expatriate tax guide
Growing businesses that send their greatest assets – their people – overseas to work can face certain tax burdens, our global guide highlights the common tax rates and issues.
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International indirect tax guide
Navigating the global VAT, GST and sales tax landscape.
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Global transfer pricing guide
Helping you easily find everything you need to know about the rules and regulations regarding transfer pricing and Country by Country reporting for every country you do business with.
The ongoing changes in the global mobility landscape constantly require organisations to review and adjust their workforce arrangements. Singapore has unique tax and social security laws and most employers will need professional assistance in managing the needs of their global workforce beyond the filing of their expatriate’s income tax returns to ensure that they are not caught out by double taxation or misreporting of employment remuneration.
The Employer Solutions team at Grant Thornton Singapore has the ability to take on complex work to deliver insightful solutions. These help employers and their expatriates to successfully implement global mobility policies and ensure global compliance in Singapore. The team works closely with other specialists to ensure a joined-up approach, both domestically with other taxes (e.g., corporate tax) and other services (such as immigration) as well as globally.
The Employer Solutions team offer comprehensive services tailored for various business needs and stages of a global mobility cycle from initial pre-tax planning and structuring to review of tax equalisation policies, global compliance coordination to immigration matters, and tax advice to tax filing compliance.
Click on each of the areas below to expand for more information:
Singapore has stringent immigration rules and regulations in place to ensure employer compliance with the employment laws. In most instances, the Singapore employer will sponsor and apply for an applicable work permit or pass for the foreign employee in order to work in Singapore. The pandemic has presented a tightening of immigration requirements and stricter application processing. However, with the labour crunch and re-opening of borders, we see the government announcing updates to the EP application process, including quicker processing time and greater transparency. However, with the ever-changing landscape, immigration requirements in Singapore remain fluid.
Even though there are no monthly tax withholding requirements (except for tax clearance situation), employer should be aware of the payroll taxes requirements when a foreign employee is working in Singapore.
A foreign employee taking up employment in Singapore must hold a valid work pass (such as an S Pass or Employment Pass) before commencing employment in Singapore. A local sponsor, generally the employer or a host company in Singapore, is required to support such application for the foreign employee’s relevant work pass.
If the foreign employee’s spouse and dependent family relocates to Singapore together, they will also require the dependent's Pass(DP).
A work pass is typically tied to a single employer. However, there are a number of other work passes available that are not directly tied to an employer, including the:
- Overseas Networks & Expertise (ONE) Pass for top talent in all sectors,
- Tech.Pass for tech entrepreneurs/leaders/experts, and
- Personalised Employment Pass for high-earning Employment Pass holders and overseas foreign professionals.
The Ministry of Manpower (MOM) has recently updated the immigration application process for EPs effective September 2023, introducing a point-based system for this application, emphasising on qualifications and diversity of foreign talent hires on both the employer and employee. This would be a consideration for assignment planning to Singapore.
The Singapore tax year is based on calendar year from 1 January to 31 December and tax is levied on a preceding year basis. This means that income for the calendar year 2023 is taxable in the Year of Assessment 2024.
An individual deriving Singapore sourced income must file an annual income tax return by 15 April (via paper filing) or 18 April (via e-filing) with the Inland Revenue Authority of Singapore (IRAS) on their preceding calendar year’s income. Any request for extension of the time to file the annual tax return will be subject to the IRAS agreement. Grant Thornton Singapore can include clients in a bulk request for extension, which extends the filing date to 30 June.
An employer is required to issue MOM compliant payslips and ensure that statutory deductions and employer contributions (e.g., Skills Development Levy) are paid. They must also submit employer year end forms, Form IR8A/E and related appendices, by 1 March the following year on the employees’ income for the preceding calendar year. This means that Form IR8A/E reporting the employee’s income for calendar year 2023 needs to be filed to IRAS by 1 March 2024.
There is no payroll withholding requirements for tax purposes, except in a tax clearance situation which arises when a non-Singapore citizen employee ceases employment in Singapore, leaves Singapore permanently or for a period more than three months.
Singapore does not have a Self-Assessment tax system and therefore tax due for the assessment year is payable after the issuance of a tax assessment (i.e., Notice of Assessment - NOA) from IRAS. The taxpayer may either settle the tax liabilities in one lump sum within one month from the date of issuance of the NOA or through interest-free GIRO instalments (up to 12-months). Any objection to the NOA must be submitted within 30 days from the date of issuance.
Where a non-Singapore citizen employee ceases Singapore employment or leaves Singapore (permanently or for a period more than three months), the employer is usually required to file a tax clearance return (Form IR21) at least one month before the date of cessation of employment or departure from Singapore, whichever is earlier. The employer is also required to withhold any payments due to the leaving employee (such as salary, leave encashment, reimbursement of expenses, etc.) from the date the employer is aware of the leaving employee’s departure until a tax clearance directive is received from IRAS.
A tax clearance directive and NOA will be issued to the employer and leaving employee respectively upon the finalisation of the Form IR21. Final tax payment is to be paid and settled to IRAS before the stipulated payment deadline to avoid any enforcement actions imposed by IRAS.
Deemed exercise rule will apply where the non-Singapore citizen employee has Singapore sourced grants that remain unexercised stock options or unvested share awards upon their cessation of Singapore employment. This rule will result in a dry tax charge on unexercised/unvested equity, which will be payable together with the tax clearance assessment.
Reassessment of the deemed gains is available if the actual equity gain (upon actual exercise of stock options or vesting of shares) is lower. This is applied by the taxpayer within 4 years from the year of assessment following the year in which the deemed exercise rule is applied. E.g., if the deemed gain for year 2023 was assessed in Year of Assessment 2024, the reassessment application must be made by 31 December 2028). Please note that supporting documents may be requested by IRAS to support the application claim.
An alternative to the deemed exercise rule is the tracking option which allows an employer to track the income realisation event of the employee and report the gain to the IRAS at that point rather than applying the deemed exercise rule. An employer needs to meet stringent conditions to apply for the tracking option and the application is subject to the IRAS approval.
Resident rate for YA 2023
Chargeable income (SGD) |
Income tax rate (%) |
Tax due (SGD) |
First 20,000 | 0 | 0 |
Next 10,000 | 2 | 200 |
First 30,000 | - | 200 |
Next 10,000 | 3.5 | 350 |
First 40,000 | - | 550 |
Next 40,000 | 7 | 2,800 |
First 80,000 | - | 3,350 |
Next 40,000 | 11.5 | 4,600 |
First 120,000 | - | 7,950 |
Next 40,000 | 15 | 6,000 |
First 160,000 | - | 13,950 |
Next 40,000 | 18 | 7,200 |
First 200,000 | - | 21,150 |
Next 40,000 | 19 | 7,600 |
First 240,000 | - | 28,750 |
Next 40,000 | 19.5 | 7,800 |
First 280,000 | - | 36,550 |
Next 40,000 | 20 | 8,000 |
First 320,000 | - | 44,550 |
Next 180,000 | 22 | 39,600 |
On the First 500,000 | - | 84,150 |
On the Next 500,000 | 23 | 115,000 |
On the First 1,000,000 | - | 199,150 |
In excess 1,000,000 | 24 |
Non-resident
Income from employment is taxed at the higher of either flat rate of 15% or the progressive resident rates. Other income (such as rental income) is taxed at 24%.
Singapore adopts the territorial basis of taxation and tax is levied on an individual based on the income accrued in or derived from Singapore.
Foreign sourced income is generally not subject to tax in Singapore where the Comptroller is satisfied that the exemption will be beneficial to them unless it is received through a partnership in Singapore.
An individual will be regarded as a resident for Singapore tax purposes if that individual:
- Qualitative test: normally resides in Singapore (regardless of temporary absences), or
- Quantitative test: is physically present or exercises employment in Singapore for 183 days or more in a calendar year.
An individual could be tax resident from the outset of his/her employment in Singapore if this lasts continuously for 183 days over 2-3 years, by concession.
Otherwise, the individual will be regarded as a non-resident for Singapore income tax purposes.
A non-resident individual who exercises employment in Singapore for 60 days or less in a calendar year may be exempt from tax under the short-stay exemption. This exemption does not apply to director of a company, a public entertainer, or a professional in Singapore. This also does not alleviate the employer from their obligations.
Generally, all gains and profits derived by an employee from his or her Singapore employment are taxable, unless they are specifically exempt from income tax or are covered by administrative concessions. This is regardless of where the employment contract was concluded or where the payroll is administered.
Income arising from employment exercised in Singapore is Singapore sourced and subject to tax in Singapore. When the employee works overseas, these overseas workdays may still be treated as Singapore sourced if it is incidental to their Singapore source employment.
A dual employment contract is one where an employee has two employment contracts with two different employers covering the period of their employment.
Generally, companies implement dual employment contract arrangement for a number of commercial or economic reasons. This may include individuals who have different roles with multiple companies within a group that take them to different countries. However, such arrangement is often a contentious area with the tax authorities globally.
Whilst a dual employment contract arrangement can assist the employer and employee to mitigate double taxation risk arising on employment income, there is an inherent risk in the implementation due to overlapping/similar duties. Therefore, it is important that dual employment contract arrangement is properly set up and implemented on an ongoing basis to minimise any risk of challenge by the tax authorities.
As a tax resident, an individual is entitled to tax reliefs and rebates. Some tax reliefs and rebates are targeted at certain groups of taxpayers in order to promote specific social and economic objectives. Some common reliefs include:
Relief | Conditions | Amount |
Earned income relief | This relief is for individuals who are actively employed / carrying on trade or business in Singapore. The amount of relief available is based on age and taxable earned income in the basis period. This claim would be granted automatically upon submission of your tax return. |
SGD 1,000 to SGD 12,000 (based on age and taxable earned income in the basis period) |
Spouse relief |
This relief recognizes taxpayers who support their spouses. Handicapped spouse relief is also available, subject to conditions. |
SGD 2,000 |
Qualifying child relief |
This relief is given to parents in supporting their children, and by either the mother or father of the child or shared between the 2 parents.Handicapped child relief is also available, subject to conditions. |
SGD 4,000 per child |
Life insurance relief |
This is claimable on the annual insurance premium paid on life insurance policies (either the taxpayer’s or spouse’s), subject to meeting conditions. |
Up to SGD 5,000 |
Course fee relief | This relief is for course fees borne by the taxpayer for business related courses to encourage individuals to continuously upgrade their skills and enhance employability. | SGD 5,500 |
Supplementary retirement scheme (SRS) |
This voluntary scheme encourages individuals to save for retirement. SRS relief is granted based on the contributions made by the individual, subject to a maximum cap. Subsequently, withdrawals made from this scheme are taxable. The time and circumstances of the withdrawal will determine the taxable amount of the withdrawal. For example, if you meet the retirement age then only half of the withdrawal becomes taxable. |
Amount of contributions made, capped at S$35,700 (foreigners) / S$ 15,300 (Citizens/PRs) |
Central Provident Fund (CPF) | The employee portion of the contribution would be deductible against tax assessable income, subject to a cap of SGD 20,400 (for individuals below 55 years old) | Max SGD20,400 (depending on age) |
Personal income tax relief cap of $80,000 applies to the total amount of all tax reliefs claimed for each Year of Assessment.
Expenses wholly and exclusively incurred in the production of income are tax deductible. In practice, there are limited type of deductions that can be claimed against employment income. Employees must be able to substantiate their deduction claim to the IRAS where the expenses incurred were necessary in performing their duties and such expenses were not reimbursed by the employer, and supporting documentation to this should be kept for at least 5 years.
Other non-business-related deductions include those for donation or Self Help Groups (SHG) purposes
Deductions | Conditions |
Donations | Donations made to approved Institution of a Public Character (IPC) can be given a tax deduction of 250% the amount of donation made. |
Self Help Groups (SHG) | Subject to certain conditions, employees are required to contribute monthly to the SHGs Funds, set up to uplift the less privileged and low-income households in certain communities in Singapore. The prescribed amount is deducted from wages. |
A Double Tax Agreement (DTA) between Singapore and another jurisdiction serves to prevent double taxation of income earned in one jurisdiction by a resident of the other jurisdiction. The agreements provide for reduction or exemption of tax on certain types of income. Singapore has one of the most comprehensive treaty networks, facilitating the framework for mitigating cross-border double taxation matters.
Where a resident taxpayer is subject to a foreign income tax on income that is already subject to tax in Singapore, double tax relief may be available to minimize / mitigate or exempt the income from Singapore tax completely, if Singapore has a DTA with the foreign country involved and stipulated conditions are met.
Treaty relief is not included within the Singapore income tax return and is a separate application made to the IRAS, assessed on a case-by-case basis.
There is no capital gains tax in Singapore. However, care must be taken when determining whether proceeds from a transaction are capital in nature or income arising from carrying on a trade. Income arising from a trade is taxable in Singapore.
Estate duty is a tax on the total market value of a person's assets (cash and non-cash) at the date of his/her death. It does not matter if the person has a will or not, the assets are still subject to estate duty. Estate duty has been abolished for deaths occurring on and after 15 February 2008.
There is no gift tax in Singapore.
Generally, investment income (with certain exceptions) is aggregated with other types of income and is subject to tax based on the tax rates set out above.
Interest earned on standard savings as well as current and fixed deposits with an approved bank or a licensed finance company registered with Monetary Authority of Singapore is exempt from tax in Singapore.
Dividends are profits you receive from your share of ownership in a company, which may be paid out to you in cash or in kind. Under the one-tier corporate tax system (except co-operatives), most dividends paid by Singapore tax-resident companies are exempt from tax.
Property tax is levied on properties located in Singapore. The property tax is generally based on the annual value of the property and the rate of tax is typically dependent upon on the category of the property (residential or commercial/industrial) and whether the property is owner occupied (for residential properties).
When property in Singapore is rented, the rental income less any allowable rental expenses is subject to tax.
Stamp duty is a tax on dutiable documents relating to any immovable property in Singapore and any stocks and shares. Dutiable documents typically include the following:
- Lease/tenancy agreements
- Transfer or mortgage documents for properties
- Transfer instruments of shares
- Mortgage documents for shares.
There are additional types of stamp duty that may apply for certain buyers and sellers of real estate in Singapore.
The Central Provident Fund (CPF) is the social security system in Singapore and it is a compulsory savings scheme instituted by the Singapore government for individuals who are Singapore citizens or Singapore permanent residents. Otherwise, no Singapore social security contributions are required by both employer and employee.
CPF contributions are payable at the prevailing contribution rates and vary depending on the age and immigration status of an employee. Singapore permanent residents in the first and second years of their permanent resident status are subject to lower contribution rate unless they jointly apply with their employer to contribute at higher CPF contribution rates.
Equity grants are considered Singapore sourced if they are granted in relation to a Singapore employment. If this is granted before / after or ultimately not in relation to a Singapore employment, this will not be Singapore sourced. Singapore sourced equity will be reportable and assessable to tax in Singapore generally when either the stock options are exercised and/or when the shares are vested.
Where a sales moratorium is imposed, the taxable event is when the moratorium is lifted. In addition, deemed exercise rule will apply on the unexercised stock options or unvested share awards upon cessation of employment in Singapore.
There is generally no tax on the date of grant of the stock options/share awards or on the proceeds upon the sale of the shares.
With constant changing tax rules and global mobility environment, multinationals are adapting to take care of the needs of their global workforce to ensure global mobility assignments are tax efficient and in compliant.
It is critical for multinationals to look at available tax concessions and benefits that they can leverage to manage costs within the group. There should be appropriate attention given to equity-based compensation to ensure that the employers and expatriates are not exposed to unnecessary taxes that can be avoided with proper pre-assignment structuring / planning to minimise tax burdens for both parties and offer possible tax savings opportunities.
The suite of services provided by our Employer Solutions team offer insightful solutions tailored to your business needs.
For further information on expatriate tax services in Singapore please contact:
Adrian Sham |