When it comes to money, few words spark more confusion or anxiety than taxes. And if you’re an expat in Singapore, chances are you’ve heard all sorts of conflicting advice: “Singapore is a tax haven.” “I don’t need to file anything.” “I’ll just keep everything offshore.”

The truth? While Singapore’s tax system is simple compared to many countries, there are still rules you need to understand, and myths that can cost you money, or worse, land you in trouble.

In today’s article, I’ll break down the biggest expat tax myths I hear time and again, explain what’s fact and what’s fiction, and share practical tips to make your financial life smoother.

Myth 1: “Singapore has no tax.”

Let’s start with the most common misconception.

Truth: Singapore does have tax — but it’s relatively low.
• Personal income tax is progressive, with rates starting at 0% and capped at 24% (from 2024 onwards).
• There’s no capital gains tax, no inheritance tax, and no tax on dividends from Singapore companies.

What this means for you: While you will pay income tax on your Singapore salary, many investment gains are tax-free locally. That makes Singapore an attractive hub for building wealth, but don’t confuse low tax with no tax.



Myth 2: “If I’m paid offshore, I don’t pay Singapore tax.”

This one trips up a lot of newcomers.

Truth: If your income relates to work you perform in Singapore, it is taxable here, regardless of whether it’s paid into a Singapore or overseas bank account.

Example: If you’re working in Singapore but your employer pays you in pounds or euros into a UK or EU account, Singapore’s Inland Revenue Authority (IRAS) still considers it taxable.

Smart tip: Always declare all employment income tied to your work in Singapore. Hiding it doesn’t make it invisible and penalties can be steep.

Myth 3: “I don’t need to file anything if my employer withholds tax.”

Truth: In Singapore, the tax system is not a Pay-As-You-Earn (PAYE) system. Unlike in the UK or Australia, your employer doesn’t deduct income tax from your monthly salary. Instead, you file once a year with IRAS, usually in April.

Smart tip: Mark tax season in your calendar. If you’re on an Employment Pass, your company may file an employer return, but you are still responsible for filing your personal return unless specifically waived.



Myth 4: “If I’m leaving Singapore, I can just go.”

Truth: Expats leaving Singapore must go through a process called tax clearance. This means your employer withholds part of your final salary until IRAS confirms you’ve settled all outstanding taxes.

Smart tip: If you’re planning to leave, give your employer at least one month’s notice so they can prepare your tax clearance. Otherwise, your last salary may be delayed…not ideal when you’re moving countries…



Myth 5: “Offshore investments are tax-free everywhere.”

Truth: In Singapore, yes — but your home country or your next destination may still tax your income or gains.

Example: A British expat investing offshore may not owe tax in Singapore, but if they move back to the UK, HMRC will want its share (after you fall out of the FIG regime). Similarly, Italian or Australian residents often face global tax rules when they return home.

Smart tip: Think cross-border. Always consider not just where you are today, but where you might move next. Offshore wrappers, trusts, or global investment structures can help mitigate double taxation, but only if set up properly.



Myth 6: “I’m not here long enough for tax to matter.”

Truth: Even short-term expats are subject to Singapore tax if they stay over 60 days in a calendar year. If you stay over 183 days, you’re treated as a tax resident, which often means lower rates.

Smart tip: Keep track of your days. If you’re close to 183, it might make sense to extend slightly and benefit from resident rates.

How to Stay Tax-Savvy as an Expat
1. Know your residency status — tax rules differ for residents and non-residents.
2. Keep records — contracts, payslips, and bank transfers are essential if IRAS asks questions.
3. Plan ahead — consider how today’s decisions will affect you when you eventually repatriate.
4. Get advice when needed — especially if you have assets, property, or income in multiple countries.



Taxes don’t need to be scary, but ignoring them can be costly. By separating fact from fiction, you can avoid surprises, plan smarter, and keep more of your hard-earned money working for you.

Singapore offers expats a unique opportunity: low taxes on income and investments, and a simple filing process compared to many other countries. The key is knowing the rules — and not falling for the myths.

If today’s blog post helped clear up some confusion, make sure you follow the this & the podcast so you don’t miss out more, like where we’ll compare private banking and independent advisers, and help you decide what’s right for you as an expat.