In Singapore, Form M refers to the “Income Tax Return for a Non-Resident Individual” or “Form M”. This form is used by individuals who are not considered tax residents of Singapore but have earned income from Singapore sources that are subject to tax under Singapore’s income tax laws.
Key points about Form M for non-resident individuals in Singapore include:
Non-Resident Status: Non-resident individuals who do not reside in Singapore for at least 183 days in a calendar year or whose employment in Singapore is for less than 183 days in a calendar year. Non-residents are taxed only on income earned in Singapore or derived from Singapore sources.
Singapore Source Income: Income derived from Singapore sources subject to tax include employment income, director’s fees, rental income from Singapore property, certain types of royalties, and income from a trade, business, profession, or vocation carried out in Singapore.
Tax Rates and Treatment: Non-residents are subject to different tax rates and treatment compared to tax residents of Singapore. The tax rates applicable to non-resident individuals are generally higher, and certain tax reliefs and deductions available to tax residents may not be available to non-residents.
Filing Requirements: Non-resident individuals are to file Form M with the Inland Revenue Authority of Singapore (IRAS) to report their Singapore source income and compute their tax liability. The filing deadline for Form M is typically April 15 of the following year, although extensions may be granted in certain circumstances.
Tax Withholding: Employers and other payers of Singapore source income are to withhold tax at the time of payment to non-resident individuals and remit the tax withheld to the IRAS. The tax withheld is a prepayment of the non-resident individual’s final tax liability and is credited against any tax payable upon filing Form M.
Tax Treaty Relief: Non-resident individuals may be eligible for relief from Singapore tax under a tax treaty between Singapore and their country of residence. Tax treaty relief may be available to reduce or eliminate double taxation on income earned in Singapore.