Singapore Expats Forum

Tax/? - Income received from offshore Company

Discuss your views about Singapore business & economy, current policies & issues, starting a business in Singapore.
Slyder1
Newbie
Newbie
Posts: 3
Joined: Tue, 23 Jan 2018

Tax/? - Income received from offshore Company

Postby Slyder1 » Tue, 23 Jan 2018 5:00 pm

My apologies in advance if I have dragged up a discussion from the past.

I am a Singapore PR, originally from the UK - I represent a UK company for my work which involves managing Distributors in the Middle East, ASEAN, Australia and the UK - The Distributors buy goods from our factory located in China and are invoiced by our UK office and payment is made to our UK bank account - The company is not registered in Singapore and the position does not need to be based in Singapore, it is just where I am located with my family. Thanks To new technology i can be located anywhere in the world.

I am paid into my Singapore bank account monthly.

2 questions:
1) Do i need to pay tax in Singapore?
2) Do i need to make CPF contributions?

Any help or useful insight much appreciated.

User avatar
Strong Eagle
Moderator
Moderator
Posts: 11108
Joined: Sat, 10 Jul 2004
Location: Off The Red Dot
Contact:

Re: Tax/? - Income received from offshore Company

Postby Strong Eagle » Tue, 23 Jan 2018 9:55 pm

Because you live in Singapore, you are tax resident in Singapore for the purposes of active (earned) income taxation, so yes, you must declare your income and pay tax in Singapore. Singapore maintains a double taxation agreement with the UK, so you should have tax payable only in Singapore and non in the UK as you are Singapore tax resident.

This link provides an overview:

https://www.guidemesingapore.com/busine ... x-treaties

The tax treaty particulars (start at the bottom of page 12 but most of it is worth a read).

https://www.iras.gov.sg/IRASHome/upload ... 0(Ratified)(27%20Dec%202012).pdf

Because you are not working for a legal entity in Singapore, you would be considered to be self employed, and therefore, you would only be required to make Medisave contributions. However, my view is that you, as a PR, will want to make additional contributions (you get it all back anyway) because I judge that your CPF contributions are one of the elements that are considered for a REP renewal... that's just my gut feel.

https://www.cpf.gov.sg/members/schemes/ ... yed-scheme

Slyder1
Newbie
Newbie
Posts: 3
Joined: Tue, 23 Jan 2018

Re: Tax/? - Income received from offshore Company

Postby Slyder1 » Tue, 23 Jan 2018 10:18 pm

Many thanks Strong Eagle

User avatar
PNGMK
Governor
Governor
Posts: 5758
Joined: Thu, 21 Mar 2013
Location: Sinkapore

Re: Tax/? - Income received from offshore Company

Postby PNGMK » Wed, 24 Jan 2018 9:18 am

You can possibly also claim a rebate for Singapore income tax for days you are away (not resident). IT's called the 'Area Rep' scheme by IRAS. Google it. As your company is not trading via nor in Singapore you are eligible IMO.

As per SE I recommend CPF contributions as well - it's a tax free secure investment regardless. You'll have to set it up with CPF to be a self payer into it but it's not too hard. I was in your exact situation a few years back but as an Australian the question of UK tax didn't come up - however I suggest you make your NHS contributions (or whatever they are called).
IANAL. IANACPA. IANA Teacher.
Arrested? Lawyer Up
International School job? School website or http://www.ISS.edu
School advice? Avoid for profit schools
Tax advice? CPA
Pay me $5k for 100% success filling in PR form!

Slyder1
Newbie
Newbie
Posts: 3
Joined: Tue, 23 Jan 2018

Re: Tax/? - Income received from offshore Company

Postby Slyder1 » Wed, 24 Jan 2018 11:16 am

Thanks PNGMK - great points and very helpful indeed.


  • Similar Topics
    Replies
    Views
    Last post

Return to “Business in Singapore”

Who is online

Users browsing this forum: No registered users and 1 guest