Every company incorporated in Singapore must have at least one director who is ordinarily resident here. Beyond that, a company is free to appoint non-resident directors, and many do. If the company pays those directors, it takes on a withholding obligation that sits with the company, not with the director.
The withholding rate on a non-resident director’s remuneration is 24% for payments due and payable on or after 1 January 2023. It was 22% from 1 January 2016 to 31 December 2022. Any template or internal process still set to 22% will under-withhold, and the shortfall is recoverable from the company.
Who Is a Non-Resident Director
For tax purposes a director is a member of the company’s board. A director is non-resident for a Year of Assessment (“YA”) if they were physically present or employed in Singapore for fewer than 183 days in the preceding calendar year.
Residency is assessed year by year, so a director’s status can change from one YA to the next without anything about their appointment changing.
What Counts as Remuneration
Remuneration subject to tax covers both cash and non-cash benefits, including:
- Director’s fees
- Salary and bonus
- Accommodation provided by the company
- Gains from share options or other share ownership plans
Travel Benefits That Are Not Taxed
Since 1 January 2016, a director travelling into Singapore for business is not taxed on:
- Airfare paid by the company to attend board meetings
- Accommodation
- Travelling and entertainment expenses incurred for business purposes
- Per diem allowance up to IRAS’s acceptable rate
IRAS revises the acceptable per diem rate annually, so this is one figure worth checking each year rather than carrying forward. For a director travelling into Singapore the rate is S$175 per day for 2026, up from S$160 for 2025. Only the excess over the acceptable rate is taxable. Current rates are on IRAS’s acceptable rates for per diem allowance page.
The Three Capacities, and Why They Matter
A non-resident director can be paid in one of three ways, and the treatment differs in each. Getting the capacity wrong is the most common source of error here, because withholding attaches to the board-director capacity only, and one individual is often paid in more than one capacity at once.
1. As a Board Director
A company paying remuneration to a non-resident director in their board capacity must withhold 24% of the payment and remit it to IRAS.
This applies to the full amount, and it applies regardless of where the board meeting was held or whether the director was ever physically in Singapore. Neither fact changes the obligation.
Withholding tax is e-filed through myTax Portal and paid by the 15th of the second month after the date of payment. IRAS then issues a Confirmation of Payment to the company.
The director does not file a Singapore return for this income, because tax has already been withheld at source.
2. As Both a Board and an Executive Director
A non-resident director may also hold an executive role, such as Chief Executive Officer or Managing Director, running daily operations. Remuneration for that executive role is employment income and is not subject to withholding tax.
Where one individual is paid in both capacities, only the board-capacity remuneration is withheld on. The company reports each capacity on its own Form IR8A, gives the director copies of both, and the director then files a return declaring the employment income.
3. Gains From Share Options or Share Awards
Where a non-resident director realises gains from exercising share options (ESOP) or the vesting of share awards (ESOW), the company reports the gains to IRAS, and IRAS assesses the director directly.
The reporting form and deadline for ESOP and ESOW gains depend on the director’s capacity and the plan involved, so confirm the current requirement on IRAS’s tax obligations for non-resident director page before filing. An earlier version of this guide named a specific form here that could not be verified against current IRAS guidance, so it has been removed rather than repeated.
Tax Clearance
Where a director who is not a Singapore citizen ceases employment in an executive capacity, or plans to leave Singapore for more than three months, the company must seek tax clearance and ensure outstanding tax is settled before releasing any remaining monies.
Practical Takeaway
Three things account for most of the errors we see:
- The rate. 24% for payments from 1 January 2023, not 22%.
- The capacity. Board-capacity fees are withheld on; executive employment income is not. One person can be both, and the two are reported separately.
- The deadline. The 15th of the second month after payment, where the date of payment is the earliest of the contractual due date, the date credited to the director’s account, or the date actually paid.
This is a general guide, not advice on your company’s facts. Withholding rates and administrative concessions are revised in Singapore Budgets, so confirm current figures with IRAS or your tax adviser before filing.