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Complete guide on Remuneration of Non-resident Director and How Is It Taxed


The compensation of a non-resident director and its tax assessment can change essentially depending on the nation in which the company that pays the compensation is based, as well as the nation of the home of the executive. 

Tax laws are complex and subject to alteration, so it is continuously fitting to allude to a charge proficient or a bookkeeper recognizable with international charge laws for the foremost exact and up-to-date exhortation. 

Read the below article to learn about the Remuneration of Non-resident Director and How Is It Taxed

Definition of Non-Resident Executive 

A non-resident official refers to an individual who serves on the board of chiefs of a company but is not an occupant of the country where the company is built. This status can influence how the director’s compensation is saddled. 

Source of Pay 

The essential thought in deciding how the compensation is saddled is the source of the wage. For the most part, if the wage is sourced from inside a nation (i.e., the executive performs their obligations or the company is based in that nation), at that point that country may have the correct charge of the salary. 

Tax collection within the Nation of the Company 

1. Withholding tax: 

Numerous nations force a withholding assessment on compensation paid to non-resident directors for administrations performed in that country. The rate of withholding assessment can vary. 

2. Pay Tax: 

In expansion to or rather than withholding charge, the compensation could be subject to wage assessment within the nation where the company is found, particularly on the off chance that the executive is considered to have a lasting establishment or a settled base in that nation. 

Tax assessment within the Director’s Nation of Home 

1. Around the World Salary: 

Nations that tax inhabitants on their around-the-world wage will for the most part incorporate the compensation of a non-resident executive within the director’s assessable wage. 

2. Remote Tax Credits: 

To dodge a twofold tax assessment, the director’s nation of home may allow a credit for charges paid within the nation where the company is based. 

Double Tax Assessment Assertions (DTAs) 

Numerous nations have entered DTAs with other nations to avoid twofold tax assessment of the same salary. These assertions ordinarily indicate which nation has the correct to assess diverse sorts of pay, counting the compensation of executives. DTAs can altogether influence how and where a non-resident director’s compensation is saddled. 

Detailing Commitments 

Both the company and the executive may have detailed commitments within the nation where the company is based and within the director’s nation of home. It is critical to comply with these commitments to maintain a strategic distance from punishments. You can also visit https://timcole.com.sg/ for this purpose.


The tax collection of compensation for non-resident executives includes considering different variables, counting the laws of the nation where the company is based, the director’s notion of home, and any pertinent twofold tax collection understandings. 

Given the complexity and inconsistency of assessment laws, getting proficient counsel is vital to guarantee compliance and optimize assessment results.