Singapore RSU tax: What you need to know

Received Restricted Stock Units (RSUs) from your employer in Singapore? If so, you’ll need to know more about what happens when the time comes to sell them.

In this guide, we’ll be looking at Singapore RSU tax, covering everything you need to know. We’ll run through how RSUs are taxed in Singapore, including the types of tax which could affect you, tax rates and more.

We’ll also show you how the Wise account could be the perfect solution for when it comes to selling your RSUs in a different currency. A Wise account lets you hold and convert between 40+ currencies including Singapore dollars, for low fees* and mid-market exchange rates.

But first, a quick overview of what RSUs are and how they work.

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What are RSUs?

Restricted Stock Units (RSUs) are a kind of employee compensation or benefit issued by a company. They are essentially a promise to transfer shares in the company to an employee according to a set schedule.

A company may want to offer them as an incentive for new employees, helping them secure the best talent. Or they may grant RSUs to staff on different occasions, such as on an annual basis, to reward long service or when the company reaches a particular milestone or performance-related target.

The key thing to note is that RSUs don’t have monetary value at the time they’re granted. After a set period of time known as a ‘vesting period’, the RSU will convert to actual stock which can be sold for a cash value.

Read more about the difference between RSUs and stock options here in our handy guide.

When RSUs are sold, there will almost certainly be tax implications. This is what we’ll be exploring below, specifically in relation to selling RSUs in Singapore. The country has its own tax laws, and it’s crucial to understand how they’ll affect you in this situation.

Singapore has some strict laws in relation to tax. If you make an error when submitting a tax return (or fail to submit one at all), you could face harsh penalties - and ignorance of the rules isn’t accepted as an excuse.

Depending on the circumstances, you could have to pay up to 200% of the undercharged tax, a fine of up to 5,000 SGD (approx. £2,928 in GBP) or even face a prison sentence.¹

So, it’s well worth taking the time to understand your obligations and perhaps seek professional tax advice too.

How are RSUs taxed in Singapore?

Now, let’s dive into how RSUs are taxed in Singapore, including tax rates and who is affected.

When are RSUs Taxed? (Vesting vs. Sale)

Under Singapore tax laws, similar to countries throughout the world, RSUs are not taxed at the time they are granted.

They’re only taxed when they are vested. This is when the RSUs are officially transferred over to you, and become shares. At this point, you’ll be liable for income tax and any other relevant taxes.²

Crucially, the taxable amount will be the fair market value of the shares on

the exact date of vesting.²

If you’re a UK expat and you’re planning to leave Singapore, slightly different rules apply. Your RSUs will be deemed vested and taxable on the date you leave (or cease employment).²

In many countries, you’ll also be liable for capital gains tax (CGT) on any profits you make when you actually sell the shares. The good news is that Singapore doesn’t have such a capital gains tax system relating to financial instruments and personal investments, so you shouldn’t have to pay CGT when you sell your stock.³

However, if you are still considered a tax resident in the UK, you may have to pay capital gains tax under the UK’s tax rules.

It’s recommended to seek professional tax advice to understand which country’s rules apply, and to avoid issues with double taxation.

Breakdown of Income Tax, Capital Gains Tax, and Other Levies

When your RSUs vest, you may be liable for income tax based on their market value. This is because your RSUs and shares may be seen as supplementary income.

To give you an idea of what your tax bill is likely to be, here are the income tax thresholds and rates for Singapore for 2024 onwards:⁴

Singapore doesn’t levy capital gains tax on profits made from personal investments, so you shouldn’t have to pay any additional taxes or fees when you sell your shares.

But as we mentioned above, the only thing to check is whether you’re liable for CGT, income tax or other levies back in the UK.

Who is affected by RSU taxes in Singapore?

The country’s rules on RSU taxes apply to anyone who needs to file an income tax return. You’ll need to do this if any of the following apply during the tax year in question:⁵

• You earn more than $22,000 SGD during the year
• You are self-employed with a net profit of more than $6,000 SGD during the year
• You’re a non-resident but earned income in Singapore during the year.

Use Wise to save on unnecessary currency fees on your next share or RSU payout

After reading this, you should have a better idea of how tax on RSUs works in Singapore - and how the country’s tax laws apply to you.

Key takeaways to remember:

• RSUs are only taxed when vested, not when granted
• You may have to pay income tax when your RSUs are vested
• You shouldn’t have to pay capital gains tax when selling shares in Singapore
• If you’re an expat and you leave Singapore, your shares will be deemed vested from that date and tax may be due.
• It’s crucial to get professional tax advice to understand your tax obligations and avoid double taxation, especially if you’re a UK tax resident.

But it’s also important to think about the best way to manage share profits, dividends and other investment income. This is particularly crucial for those with global investments, where you’re earning returns in multiple currencies.

Wise is the ideal solution, helping you manage your money in 40+ currencies and convert between them whenever you need to.

Thanks to its low fees* and mid-market exchange rates, you could save a bundle on currency conversion fees. For an example of how it could benefit you, check out this guide to using Wise for RSU payouts in USD.

You can even get Wise account details in Singapore dollars, so you can receive SGD payments for free.

When you’re ready to make new investments, you can fund your portfolio using your Wise account - which lets you securely send money worldwide in just a few clicks.

FAQs about RSU tax in Singapore

Still have questions about RSU tax in Singapore? Take a look below for a handful of commonly asked questions and answers that you may find useful.

Is stock trading income taxable in Singapore?

Income from personal investments is generally not subject to capital gains tax in Singapore, although you may still have to pay income tax on any investments you hold in the country.

Are stock dividends taxable in Singapore?

While there is no specific ‘dividend tax’ in Singapore, you will still need to pay income tax on stock dividends under the country’s tax laws.

How to avoid double taxation on RSU in Singapore?

If you live and work between two countries (i.e. the UK and Singapore), there’s a risk that you end up paying tax on the same income in both jurisdictions. This is known as double taxation.

Tax can be complicated and can depend on your personal circumstances, so the best way to avoid double taxation on RSUs in Singapore is to seek personalised advice from an overseas tax specialist.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates, and it is not intended as a substitute for obtaining advice from a tax advisor or any other professional.

Sources used:

Sources last checked on date: 03-Mar-2025