Tax residency determines how, and to what extent, a person or company is taxed in Singapore, and whether they can access the benefits of Singapore's network of tax treaties. It is a distinct concept from immigration residency or citizenship.
A company is treated as tax resident in Singapore if the control and management of its business is exercised here – in practice, where the board of directors meets and makes strategic decisions, rather than simply where it is registered. An individual is generally regarded as tax resident for a Year of Assessment if they are physically present or working in Singapore for at least 183 days in the preceding calendar year (with some concessions for those here across two years).
Residency matters for several reasons. Tax-resident companies can claim relief under Singapore's Avoidance of Double Taxation Agreements (DTAs), enjoy exemption on certain foreign-sourced income when conditions are met, and qualify for the tax exemption schemes. Resident individuals are taxed at progressive rates (0% to 24%) and can claim personal reliefs, whereas non-residents are taxed differently and generally cannot claim those reliefs.
Because residency affects both your tax rate and your access to treaty benefits, it should be confirmed rather than assumed. Apexia can assess your residency position and, where useful, obtain a Certificate of Residence from IRAS.