US Expats in Singapore Must File US Taxes

Whether you are a citizen or green card holder, US expats in Singapore are required to file U.S. taxes each year. The good news is that, compared to the United States, Singapore tax rates are moderately lower. In addition, many Americans living in Singapore have access to a number of exclusions and credits to lower their US tax bill. It is important to understand which options you may be eligible for and how to best utilize them. Your H&R Block Tax Advisor can help you stay compliant with US and Singaporean laws while maximizing your benefits.

The H&R Block Expat Guide to complete guide to US tax Singapore explains that residents are taxed on their assessable income, less personal deductions, at the following rates. These are for the 2020 assessment year.

A significant part of income for most Singaporeans is contributions to the national social security system, known as CPF. These contributions are not only mandatory, but they also allow the recipient to take a foreign tax credit on their U.S. tax return. The amount of the credit depends on your individual situation, and the tax rate you use will impact how much CPF income you can include in your U.S. tax filings.

In addition to filing a federal tax return, most people in Singapore are required to file a Singapore tax return. This is due April 15 for individuals who are employed by a company, and June 20 for those who are self-employed or a sole proprietor. The tax return is a comprehensive document that lists all sources of income.

Like the United States, Singapore has a territorial tax system. This means that the government only imposes tax on income earned within the country. However, the country does not levy investment income such as interest and dividends.

US expats in Singapore may be able to benefit from the country’s treaty partners through an avoidance of double taxation agreement (DTA). The list of countries with which the DTA applies can be found on the DTA List.

While the DTA is helpful for reducing or eliminating double taxation, it can be complex to determine which type of income qualifies. For this reason, it is important to work with a qualified and experienced professional who is familiar with the intricacies of international taxation.

As the world becomes more globalized, it is more and more common for individuals to live in multiple countries. When this happens, the proper reporting of income and assets is essential. Our experts can assist you with determining which forms and payments are required for your situation.

While the United States and Singapore do not have an agreement for information-sharing under FATCA, the country has signed several agreements that require financial institutions to report certain accounts and investments held by US citizens. Our team of experienced, dual-licensed professionals can help you navigate your US and Singaporean tax requirements while protecting your assets from unintended exposure to the IRS. Contact us today for assistance.