Personal Income Tax for Singapore Company Directors: Salary, Fees and Filing (2026)

Every director of a Singapore private limited company receives some form of remuneration — whether a monthly salary, annual director’s fees, or both. Each carries distinct tax treatment, CPF implications, and filing obligations. Getting these right protects the company from IRAS audit risk and ensures the director meets personal tax obligations on time.

This guide explains how Singapore’s personal income tax system applies to company directors in 2026, covering the difference between salary and fees, the tax rates, filing deadlines, and the obligations on both the company and the director.

Director’s Salary vs Director’s Fees: The Key Distinction

Singapore tax law treats director’s salary and director’s fees differently, and the distinction matters both for CPF contributions and for when the income is taxable.

Director’s Salary

A director who is also an employee of the company — for instance, an executive director serving as CEO or operations head — draws a monthly salary. This salary is treated as employment income under the Income Tax Act 1947. It attracts CPF contributions (for Singapore Citizen and Permanent Resident directors up to age 55, with rates tapering thereafter), and the company must file an IR8A on behalf of the director by 1 March each year.

Director’s Fees

Director’s fees are payments made specifically for the director’s role as a board member — for attending meetings, overseeing governance, and exercising fiduciary duties. Unlike salary, director’s fees are not subject to CPF contributions. They are still taxable as income in the hands of the director, but the timing of taxation is different: fees are taxable in the year they are approved by shareholders (typically at the Annual General Meeting), regardless of when they are actually paid.

A practical example: if director’s fees for FY2025 are approved at the 2026 AGM (say, in April 2026), those fees are assessed as Year of Assessment (YA) 2026 income — even if the director only receives payment months later.

Are Director’s Fees Subject to CPF?

No — director’s fees paid purely in the capacity of a board member are not subject to CPF contributions. This is because the director is not in an employer-employee relationship with the company when acting in the director capacity. However, if the same individual also draws a salary as an employee of the company, CPF contributions apply to that salary component.

Companies that mistakenly include director’s fees in CPF calculations may over-contribute and need to apply for refunds. Companies that fail to make CPF contributions on an executive director’s salary face penalties from the CPF Board.

Singapore Personal Income Tax Rates (YA 2026)

Singapore uses a progressive personal income tax system. Resident individuals are taxed on a sliding scale, while non-residents face a flat withholding rate on director’s fees.

Resident Individuals

For YA 2026, the resident personal income tax rates are:

The top marginal rate of 22% applies to chargeable income exceeding S$320,000. Singapore’s effective tax rates remain competitive compared to most developed jurisdictions for high-earning directors.

Non-Resident Directors

Non-resident directors — those who are not Singapore tax residents — face a withholding tax of 24% on director’s fees paid by a Singapore company. The company is responsible for withholding this tax and remitting it to IRAS by the 15th of the second month following the date the fees are paid or credited.

If the non-resident director also performs services in Singapore as an employee, the employment income portion may be separately assessed. The split between fees and employment income must be carefully documented.

Filing Obligations: The Company’s Role

IR8A — Employment Income Reporting

The company must prepare and submit Form IR8A for every director drawing a salary (employment income) by 1 March of the following year. IR8A captures total employment income, benefits-in-kind, CPF contributions, and other employment-related payments. Under the Auto-Inclusion Scheme (AIS), most Singapore employers are required to submit IR8A data electronically to IRAS, which then pre-populates the director’s personal tax return.

Director’s Fees — Separate Reporting

Director’s fees are not reported on IR8A. Instead, IRAS expects the director to declare fees in their own personal tax return (Form B or Form B1). The company should provide the director with a written record of the fees approved and paid each year to support this declaration.

Withholding Tax for Non-Resident Directors

If the company pays fees to a non-resident director, it must withhold 24% and file Form IR37 (withholding tax) with IRAS within the required timeframe. Failure to withhold carries penalties.

Filing Obligations: The Director’s Personal Tax Return

Singapore resident directors must file their personal income tax return each year. For YA 2026 (income earned in calendar year 2025):

• Paper filing deadline: 15 April 2026
• e-Filing deadline: 18 April 2026

IRAS strongly encourages e-filing through myTax Portal. Directors whose employers participate in the Auto-Inclusion Scheme will find their employment income pre-filled. Director’s fees and other non-employment income must be added manually.

Tax Deductions Available to Directors

Directors can claim certain deductions against their employment income, subject to IRAS conditions:

• CPF contributions — the employee’s own CPF contributions (Ordinary, Special, and Medisave) are deductible up to the Annual CPF Contribution Cap
• Qualifying course fees — fees paid for approved courses that enhance skills relevant to the current employment
• Business expenses — if the director incurs specific expenses wholly and exclusively in producing employment income (rare in practice)
• Parent relief, spouse relief, NSman relief — various personal reliefs available depending on circumstances
• SRS contributions — contributions to the Supplementary Retirement Scheme are deductible up to the annual cap (S$15,300 for Singapore Citizens/PRs)

Common Mistakes to Avoid

Several issues frequently arise when companies or directors mishandle the salary-versus-fees distinction:

• Treating director’s fees as salary and over-contributing CPF — triggering refund applications and complicating payroll reconciliation
• Failing to declare director’s fees in the personal tax return because the company did not issue IR8A (director’s fees do not appear on IR8A — the director must declare them independently)
• Paying non-resident director fees without withholding the 24% tax — a common oversight in companies with foreign founders
• Approving director’s fees in the wrong financial year, causing a mismatch between the company’s expense accrual and the director’s taxable year

How Raffles Corporate Services Can Help

Proper structuring of director remuneration — balancing salary and fees to optimise CPF obligations, cash flow, and personal tax — requires careful planning. Our team handles corporate secretarial filings, payroll processing, CPF submissions, and IR8A preparation for directors across a wide range of Singapore companies.

For questions about director remuneration, CPF obligations, or your company’s annual filing requirements, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133.

Conclusion

Personal income tax for Singapore company directors is not complex, but it does require attention to the salary-versus-fees distinction, correct CPF treatment, timely IR8A filing by the company, and the director’s own obligation to file a personal tax return by the April deadline. Non-resident directors add a withholding tax layer that must not be overlooked.

Getting the structure right from the outset — with the help of a good corporate secretary and accountant — prevents errors that are far more disruptive to correct after the fact.