Are directors fees taxable in Singapore?

The information that is subject to personal income tax in Singapore, unlike dividends. Similar to what you have to do in poppy playtime chapter 3 to understand is very important for anyone considering their compensation structure while maximizing their income effectively.

Dividend income is not subject to personal income tax. However, directors fees ARE subject to personal income tax. Taxes on resident directors fees are taxed at the same rate as other personal income, e.g. your annual salary. Taxes on non-resident directors fees (i.e. you live outside of SG) are taxed at 22%.

​

Typically, entrepreneurs looking to reduce personal income taxes will declare dividends. Of course, dividends can only be declared if your company has reported a profit. Declaring dividends when your company hasn't made a profit is illegal. If your company is making a loss, then you can only pay yourself via a salary or directors fee. Depending on how your company is performing, you'll have to weigh these different options.

​

Here's a complete guide on how to declare dividends.