Tax Identification Number (TIN): What is it and does my business need one?

What is a Tax Identification Number (TIN)?

A Tax Identification Number (TIN) is a unique nine to 10 digit identification number assigned by Singapore government agencies to individuals and businesses for tax purposes. This unique number serves as an essential identifier to facilitate tax-related interactions and financial transactions. It ensures compliance and accuracy in tax-filing processes, thereby helping the government to manage tax matters efficiently. 

Below, we’ll cover the three main types of TIN (NRIC, FIN, and UEN) and how you can obtain one in Singapore. We’ll also discuss its importance for legal compliance, tax reporting, and business transactions.

In summary:

• What is a TIN? A Tax Identification Number (TIN) is a unique nine to 10 digit identification number issued by the Singapore government to individuals and businesses for tax purposes.

• It includes the National Registration Identity Card (NRIC) number or Foreign Identification Number (FIN) for individuals, and Unique Entity Number (UEN) for businesses.

• All registered businesses in Singapore are required to obtain a UEN. They should also ensure their employees have a valid TIN before starting employment.

• All businesses in Singapore are given a TIN when they register with the Accounting and Corporate Regulatory Authority (ACRA).

What are the types of Tax Identification Numbers in Singapore?

In Singapore, there are three primary types of Tax Identification Numbers, each serving different categories of individuals and entities:

National Registration Identity Card (NRIC)

The NRIC is assigned to Singapore citizens and Permanent Residents upon birth or when they are granted citizenship or permanent residency. In Singapore, the NRIC number also functions as your Tax Identification Number (TIN), often called the Tax Reference Number (TRN). This unique nine-digit number serves as a personal identifier for various government and administrative processes. For example, you’ll need an NRIC number when registering for healthcare services, applying for insurance, checking into a hotel, and subscribing to a phone line. You'll also need it for transactions and taxation purposes, like filing your personal income taxes, opening bank accounts, and applying for loans and credit cards.

Foreign Identification Number (FIN)

In Singapore, the number of the total foreign workforce is 1,525,500 in 2023 [1]. The FIN is a unique nine-digit number issued to foreigners who aren't Permanent Residents but hold a valid employment pass, work permit, student's pass, or another type of long-term visit pass in Singapore. It functions similarly to the NRIC, ensuring that non-residents can fulfil their tax obligations while residing in Singapore. The FIN is crucial for expats and international students as it lets them open bank accounts, sign rental agreements, and engage in various legal and financial procedures during their stay.

Unique Entity Number (UEN)

The UEN is designated to registered entities such as businesses, local companies, foreign businesses registered in Singapore, and other organisations. All registered businesses including companies, sole proprietorships, partnerships, and limited liability partnerships are required to have a UEN. This nine or 10 digit ID number makes it easier to work with different government agencies. It also serves as a standard identifier for financial, legal, and administrative activities. For example, businesses use their UEN when filing taxes, applying for licences, and reporting corporate changes. The UEN system ensures that each entity's interactions with the government are streamlined and that records are uniformly maintained.

Do I need a TIN for my business in Singapore?

If you’re registering a business in Singapore, you’ll need to apply for an UEN, which serves as the TIN for your business. This requirement applies to businesses, local companies, LLPs, societies, and representative offices.

The UEN is a standard number that helps your business work better with government agencies. It makes it easier for your business to file taxes, get permits, and follow rules.

But, if you're simply setting up a branch or division of an existing Singapore-registered business, there’s no need to apply for a new UEN. The UEN of your current business entity can be used for all its branches or divisions within Singapore. Nonetheless, certain government agencies may opt to assign sub-entity codes to your UEN in their systems to identify and interact with these branches and divisions.

Do I need a TIN for my employees in Singapore?

Singapore citizens and Permanent Residents can use their ID card number, which is assigned to them from birth or upon becoming a Permanent Resident, as their TIN. On top of that, when moving to Singapore, foreign employees will automatically receive a Foreign Identification Number (FIN) once the Ministry of Manpower (MOM) has approved their work visa. This FIN will be used as their TIN.

Employers are responsible for ensuring that their employees have a valid TIN before starting employment. This is known as the Tax Reference Number (TRN), which helps IRAS track and monitor the individual's personal income taxes. It also serves as a way for employers to ensure that their employees are properly registered with IRAS and are making accurate tax contributions. Failure to do so may result in penalties and fines from IRAS.

How to get a TIN in Singapore

All registered businesses in Singapore are automatically assigned a TIN upon successful incorporation. It's essential to register with the Accounting and Corporate Regulatory Authority (ACRA) when starting a business in Singapore. After you have completed your company incorporation, ACRA will issue your Certificate of Incorporation, featuring your Unique Entity Number, which serves as the TIN for your business. The UEN, which typically matches your ACRA Registration Number, serves as a permanent identifier for your business, and you won’t ever have to renew it.

Registering your company is a relatively straightforward process that you can complete online through ACRA's business registration portal. You'll need to provide essential information, like your company name, entity type, registered address, and details of directors and shareholders, and make your payment to ACRA. Upon submission, ACRA will review your application and, if approved, issue your business certificate with your UEN. Alternatively, you can engage a service provider to assist with the ACRA registration process.

Are TINs expensive to get in Singapore?

Obtaining a TIN in Singapore is relatively affordable and straightforward. Businesses will get assigned a UEN number without any additional fees when they register their company with ACRA. To register a private limited company in Singapore, you’ll need to pay a S$15 name reservation fee and S$300 company reservation fee to ACRA. If you’re a foreigner looking to incorporate a company in Singapore, you’ll need to use a qualified agent, which will incur additional costs.

Why is it important to get a TIN?

Having a TIN is essential for businesses as it serves as a unique identifier and enables the government to track and monitor their activities accurately. It also allows businesses to comply with tax obligations and facilitates interactions with government agencies and financial institutions. Here are a few reasons why your business should get a TIN:

To maintain legal compliance

Having a UEN, which serves as your business's TIN, is required for operating in Singapore. It ensures that businesses comply with statutory regulations set by governmental bodies, avoiding legal complications and sanctions.

To report taxes

The UEN serves as your business's Tax Identification Number (TIN) and is essential for all tax-related matters. It allows your business to access tax filing services with the Inland Revenue Authority of Singapore (IRAS) and acts as a unique identifier for your business.

To make business transactions in Singapore

A UEN is essential for a wide range of business transactions, including opening corporate bank accounts, engaging in invoices and contracts, and procuring trade licences, such as applying for import and export permits. It serves as a unique identifier, ensuring that your transactions are recorded and monitored properly, simplifying verification processes for the government.

Globally, 52% of online shoppers now purchase from both local and international websites [2]. That means it’s more critical than ever for eCommerce businesses to tap into the global markets.  And if you want to expand your business operations to Singapore, obtaining a UEN is vital to securing an export permit. 

To participate in the Central Provident Fund (CPF)

The Central Provident Fund is a mandatory social security savings programme, supported by both employer and employee contributions. To pay for their employees' CPF contributions, businesses need to tell the CPF board their company's UEN and their employees' NRIC or FIN numbers. This ensures accurate record-keeping and enables the government to monitor CPF payments and levy taxes accordingly.

How can Airwallex support your international business expansion?

Your business will need a TIN  to open a business account and run your financial operations. Before your business can access financial offerings from Fintechs and banks,, you’ll need to provide a TIN as part of the Know Your Customer (KYC) process. TINs help service providers verify your business' identity and prevent illegal activities such as money laundering and fraud.

Our platform, Airwallex can help your business grow globally with end-to-end financial solutions. Once you have a TIN, you can open a Business Account online. This will open the doors to collecting funds from your international customers, and making cross-border payments in multiple currencies easy. 

Our platform also offers features such as Expense Management, corporate and employee cards, and API integrations to help you manage your financial operations while complying with local regulations.

Create your Airwallex business account today to streamline your global payroll management.

FAQ

Are Tax Identification Numbers essential for businesses in Singapore?

Yes, TINs are important for businesses in Singapore. They are unique numbers for companies and other entities registered with the Accounting and Corporate Regulatory Authority (ACRA). All businesses are automatically given a UEN as their TIN when they register their company in Singapore. Moreover, businesses are responsible for collecting their employees’ NRIC or FIN, which serve as their personal TIN, before starting employment.

Are there alternatives to Tax Identification Numbers in Singapore?

No, TINs are the only identification numbers issued by ACRA for businesses and other entities in Singapore. It's mandatory for all organisations operating in Singapore to have a Unique Entity Number.

Businesses must collect the individual TINs of their employees and submit them to IRAS for tax purposes. Singapore citizens and permanent residents should provide their NRIC, while foreigners must submit their FIN as their TIN, with no alternatives available.

Are Tax Identification Numbers expensive to get?

No. Businesses in Singapore can obtain a free Unique Entity Numbers (UEN) from ACRA upon successful company incorporation. But, there may be government and agent fees associated with registering a new business. Globally, most countries, including the US, also offer free services for obtaining their Tax Identification Numbers.

In Singapore, individual Tax Identification Numbers, including NRIC and FIN, are also free to obtain. Foreigners must pay ‌work visa fees to get a FIN, but there are no additional charges for the FIN itself.

Sources & references

• https://www.businessresearchinsights.com/market-reports/employer-of-record-market-105711

• https://www.statista.com/statistics/1297337/share-online-shoppers-abroad-local-websites-worldwide-country/

• https://www.mom.gov.sg/-/media/mom/documents/statistics-publications/foreign-workforce-numbers.xlsx

This publication does not constitute legal, tax, or professional advice from Airwallex nor substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.