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Taxation for Interns

Taxation-for-Interns

The tax treatment of interns in Singapore depends upon the duration of the internship and country where he/she has pursued her higher education. The following tax information for internship students would help the students from Singapore and abroad to assess their tax obligations to the IRAS (Inland Revenue Authority Singapore).

Hiring interns is the most common practice in Singapore by companies as it proves to be less expensive. Generally, an intern in Singapore can work for a minimum of 6 weeks to up to a year during their vacation or term-time. However, when it comes to the tax treatment of interns, there are certain clear distinctions between the ones studying in Singapore or Singapore citizens and the students from abroad.

The following table illustrates the how the taxation Singapore is applicable to interns belonging to these two categories.

Internship Duration

Singapore School / University Based Students

Overseas School / University Students

Exceeding 183 days

If the gross stipends are more than S$22,000, then the student is taxable. The employer is responsible for tax clearance. Singapore Residential tax rates apply.

If the gross stipends are more than S$22,000, then the student is taxable. The employer is responsible for tax clearance. Singapore Residential tax rates apply.

Between 60 – 183 days

Need to submit NR-R form to get taxed at lower Singapore residential rates. Tax clearance to be done by employer.

If the stipends are equivalent to normal salaries, then the students are taxable. Tax clearance to be done by employer. 15% or residential rates, whichever is higher applies.

Less than 60 days

No need to pay tax and no need for tax clearance

No need to pay tax and no need for tax clearance

 

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