Singapore Expats Forum
 

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by Narcisse
Fri, 07 Feb 2020 5:03 pm
Forum: Business in Singapore
Topic: Procedure for Singapore LLC to pay salary to non-resident director
Replies: 19
Views: 3046

Re: Procedure for Singapore LLC to pay salary to non-resident director

In general, you are considered to have performed your work in the country in which you were physically present when you performed the work. So, I am physically present in Singapore and I sweep the floors of the local Singapore karaoke club. I have performed work in Singapore. I am an accountant. I ...
by Narcisse
Fri, 07 Feb 2020 4:37 pm
Forum: Business in Singapore
Topic: Procedure for Singapore LLC to pay salary to non-resident director
Replies: 19
Views: 3046

Re: Procedure for Singapore LLC to pay salary to non-resident director

Your choices are: 1. Resign as a director and use a nominee director. Bill the company for your services from OUTSIDE Singapore. Pay income taxes in your tax resident country. This should not attract Singapore withholding tax 2. Pay another company (not yourself) for something. Have that company pa...
by Narcisse
Fri, 07 Feb 2020 4:21 pm
Forum: Business in Singapore
Topic: Timeline for Dividend Payment by Singapore LLC
Replies: 8
Views: 1223

Re: Timeline for Dividend Payment by Singapore LLC

That is most certainly not correct on the part of your accountant. Yep, I agree, you're 100% right and thank you for providing the links to the Companies Act to prove it. I don't know if my accountant is ignorant, or more likely there was a miscommunication over the phone when we discussed it. They...
by Narcisse
Thu, 06 Feb 2020 10:48 am
Forum: Business in Singapore
Topic: Timeline for Dividend Payment by Singapore LLC
Replies: 8
Views: 1223

Re: Timeline for Dividend Payment by Singapore LLC

Yes, that's not applicable to me, but I do thank you for the example, it helps the understanding. 100% understood now. That's annoying, the company I pay for secretarial services is either not aware of that or there was some terrible misunderstanding on the phone when they explained it to me. Though...
by Narcisse
Thu, 06 Feb 2020 10:15 am
Forum: Business in Singapore
Topic: Procedure for Singapore LLC to pay salary to non-resident director
Replies: 19
Views: 3046

Re: Procedure for Singapore LLC to pay salary to non-resident director

Residency (in simple terms) is linked to having an EP or PR or similar residency permit. In simple terms. Your Irishman can't work here without that but your Malaysian can work in Malaysia without it. Yep, understood. For the sake of clarity, assume he does have an EntrePass or PR, but he still spe...
by Narcisse
Thu, 06 Feb 2020 10:13 am
Forum: Business in Singapore
Topic: Procedure for Singapore LLC to pay salary to non-resident director
Replies: 19
Views: 3046

Re: Procedure for Singapore LLC to pay salary to non-resident director

Yes - this is how Narcissist should deal with this in part. I have used SP status in Singapore to bill companies in Singapore. Thank you PNGMK, but I do not believe this would apply to me even if I wanted to do this (which I have decided against). According to ACRA a sole proprietor must be "A Sing...
by Narcisse
Thu, 06 Feb 2020 10:06 am
Forum: Business in Singapore
Topic: Procedure for Singapore LLC to pay salary to non-resident director
Replies: 19
Views: 3046

Re: Procedure for Singapore LLC to pay salary to non-resident director

Ok thank you for the detailed explanation. I am 100% clear now that anything paid to a non-resident director (NRD) would be deemed as taxable income that should have 22% withholding tax paid, thanks to your explanation and IRAS saying: "Taxable income is income earned by NRDs that is subject to with...
by Narcisse
Wed, 05 Feb 2020 2:02 pm
Forum: Business in Singapore
Topic: Timeline for Dividend Payment by Singapore LLC
Replies: 8
Views: 1223

Re: Timeline for Dividend Payment by Singapore LLC

Thanks for the reply. Interesting, so you're saying that you can pay dividends out of retained earnings made in financial years that were long, long ago? I had always thought you could only pay them out of the previous 1 (one) year's profits. E.g. Year 1 profit = $50K Retained earnings = $50K Year 2...
by Narcisse
Wed, 05 Feb 2020 1:54 pm
Forum: Business in Singapore
Topic: Procedure for Singapore LLC to pay salary to non-resident director
Replies: 19
Views: 3046

Re: Procedure for Singapore LLC to pay salary to non-resident director

Ok, I think we are on the same page. Yes, the Singapore company does not need to withhold tax from what they pay their Malaysian accountant. But I would think that to be legally complaint, the Malaysian accountant would need to declare the income paid from the Singapore company to himself, to IRAS a...
by Narcisse
Wed, 05 Feb 2020 12:58 pm
Forum: Business in Singapore
Topic: Timeline for Dividend Payment by Singapore LLC
Replies: 8
Views: 1223

Re: Timeline for Dividend Payment by Singapore LLC

Your timeline and transactions are correct.
Thank you kindly.
by Narcisse
Wed, 05 Feb 2020 12:56 pm
Forum: Business in Singapore
Topic: Procedure for Singapore LLC to pay salary to non-resident director
Replies: 19
Views: 3046

Re: Procedure for Singapore LLC to pay salary to non-resident director

Thank you for the reply. The main gist of the message is clear. I should contact IRAS to find out if the payment can and even should be treated as salary. Your message is just because you dress a pig up in a dress and put lipstick on it, it's still a pig. Just because you call a Director's Fee a sal...
by Narcisse
Tue, 04 Feb 2020 9:28 pm
Forum: Business in Singapore
Topic: Timeline for Dividend Payment by Singapore LLC
Replies: 8
Views: 1223

Timeline for Dividend Payment by Singapore LLC

I was hoping if someone could confirm that my understanding of the timeline of declaring and paying final dividends is correct, as I'm a little unsure. I will use a company that uses a calendar year as a financial year to make the example simpler. The main thing I am unsure of is exactly when to rec...
by Narcisse
Sat, 01 Feb 2020 7:39 pm
Forum: Business in Singapore
Topic: Procedure for Singapore LLC to pay salary to non-resident director
Replies: 19
Views: 3046

Re: Procedure for Singapore LLC to pay salary to non-resident director

Thank you for the response. I was wondering if there was any strict protocol that needed to be followed in Singapore, or it could be just as simple as signing a short, simple employment contract (which can be found as a template on the web pretty easily), then bank transfer and record the transfer i...
by Narcisse
Mon, 27 Jan 2020 9:44 am
Forum: Business in Singapore
Topic: Procedure for Singapore LLC to pay salary to non-resident director
Replies: 19
Views: 3046

Procedure for Singapore LLC to pay salary to non-resident director

Thank you for accepting me to your forum. If this question has already been asked and answered elsewhere, I do apologize, I did a google search and a forum search but could not find an answer. I am one of the directors of a small Singapore tax resident LLC, and personally I am non-resident in Singap...

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