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Bank Account after renouncing SG-ship

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Cohen123
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Bank Account after renouncing SG-ship

Postby Cohen123 » Sun, 10 Feb 2019 8:08 pm

I am about to start process of renouncing SG ship and withdraw CPF.

After giving up the pink IC, would the bank still accept my foreign ID as alternative form of ID ? I remember they were quite adamant in my showing them pink IC for some transactions.

Any one with such experiences ?

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PNGMK
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Re: Bank Account after renouncing SG-ship

Postby PNGMK » Sun, 10 Feb 2019 9:41 pm

Foreigners seem to be able to maintain bank accounts in Singapore after renouncing PR so I think it would be the same but of course there are no guarantees. Your new PP would act as ID. Where did you migrate to?
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Re: Bank Account after renouncing SG-ship

Postby Mad Scientist » Mon, 11 Feb 2019 1:26 am

Renouncing SG citizenship is a process which takes about 6 weeks if done by mail. Or immediate if you come personally to ICA Kallang with all the document of your foreign citizenship
Make sure you make a copy of your SG citizenship and ID prior to submission
Once approved you can send the approval document plus your copy of Singapore Citizenship. This process takes about 6 weeks too
Call them nearing to that six weeks period and you will be asked to authenticate yourself to CPF officer. This is how most of us have done
Once it is authenticated provide them your SG bank account number or foreign bank account number and they will remit it to you. If it is foreign bank account, you will be subject to exchange rates and tax submission of your current tax country
I would suggest come personally to ICA get it done and then go to CPF provide your renunciation papers to CPF board and in one hour you get your money remitted to your SG account. Less messy and money is in your account same day
Note renunciation process it will only kicks in if you have no liability on your NS enlistment requirement, traffic offense or any government dues that you have not paid or submitted
If you have a HDB apartment, that apartment becomes a liability for you
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Cohen123
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Re: Bank Account after renouncing SG-ship

Postby Cohen123 » Mon, 11 Feb 2019 7:21 am

Hi Mad scientist ,

Thank you for sharing your experiences and post.

Can I just clarify that if I renounce IN Person at ICA, I would be able to get the letter to withdraw from CPF on the same day i renounce?

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Re: Bank Account after renouncing SG-ship

Postby Mad Scientist » Mon, 11 Feb 2019 7:35 am

absolutely.
From memory is the third floor or the seventh floor
Make sure you bring the original citizenship , passport of your foreign country plus copies to make the application approval smoother just in case
Its an hour wait, you will get the letter and proceed to CPF board. Bring your bank book too
Please remember you need to ascertain yourself that you are not on the shorter end of the stick before you proceed
The positive thinker sees the invisible, feels the intangible, and achieves the impossible.Yahoo !!!

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Re: Bank Account after renouncing SG-ship

Postby Cohen123 » Mon, 11 Feb 2019 8:05 am

Hi Mad Scientist,

Thank you foryour reponse.

I have no more ties in SG and am at an age where I would no longer be employable. It’s harder to be an older person in SG.

I travelled around a little bit after I lost my job and I have since established myself here in AUS and find my life here, though not perfect, more suited to me. It was not an easy decision, but I know I will want to live out my life here instead of SG.

The CPF will help me in my planning here. I understand it’s earning good interest in CPF but I think i would rather have it with me.

The other consideration I have is tax here on the CPF sum I transfer. I am not sure if it is only on the interest earned since becoming a tax resident in AUS or is it on the whole interest earned in the entire account.

When I look at back at my SG life, I am thankful for all the kind people that have given me a helping hand or offered a kind word to me. Even your replying to my post is something I appreciate. And of course thanks to anyone who contributed or will contribute to this thread, thanks.

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PNGMK
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Re: Bank Account after renouncing SG-ship

Postby PNGMK » Mon, 11 Feb 2019 10:22 am

You would only be liable for interest earned on CPF WHILE tax resident in Australia. You should have been declaring and paying tax on that interest every year since tax resident?

One consideration for keeping it in CPF is that creditors and the ATO can't get at it. I know some Americans who keep money in CPF for the same reasons.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

Cohen123
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Re: Bank Account after renouncing SG-ship

Postby Cohen123 » Mon, 11 Feb 2019 12:01 pm

Hello PNGMK,

Yes, I have been declaring all interest earned including that in CPF since becoming tax resident.

If I transfer the whole lump sum to Australia, do you know what sort of documentation ATO would require any documentation to show that I amassed the bulk of it before becoming tax resident?

I just would the money accessible here in Aus to do some financial planning for my future here. Like putting into superannuation if they allow me.

Information is scant here, and I have been asking the accountants including the forums. I do understand that people are reluctant to share their experiences, and the accountants here seem to know little of SG CPF and related minimisation strategies, since CPF is not considered a “super-fund” in Aus.

That is why I am thankful for any information.

I intend to transfer the whole amount here if the tax on in is on the amount of interest earned as a tax resident and not on the whole sum / or whole interest earned since I started working.

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Re: Bank Account after renouncing SG-ship

Postby Mad Scientist » Mon, 11 Feb 2019 1:18 pm

ATO knows sh*t unless you tell them
You can do private super in OZ
My POV if you do not need the money just some loose coins to get by, leave the bulk of it in SG. Depending on the amount there are many private banking /wealth management. The OECD banking declaration is a farce. You don't tell them anything they know know nothing
Either you remit your interest money earned or you handcarry it home to the max. amount of AUD 10,000 or equivalent without the need to declare.
Prepare a letter of indemnity and a standing order from the bank that you are with in Singapore to remit money back to OZ as when you need
Yes, you can maintain SG account in Singapore. I have one too
Look at Insurance instrument that has death benefits and saving policy. AIA, prudential has some instruments that can help you to manage your reserve
I am not a fan of shares so I would not comment on this nor cryto currency which I think is a piece of Bullsh*t instrument
Study DCD. Dual Currency Deposit. If you have the stomach and prepare for the ups and down. This will generate quicker returns
But you have to be discipline and understand what you are getting into.
Go small and don't be greedy. Study you must
Good luck mate. Yell if you need help
The positive thinker sees the invisible, feels the intangible, and achieves the impossible.Yahoo !!!

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PNGMK
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Re: Bank Account after renouncing SG-ship

Postby PNGMK » Mon, 11 Feb 2019 1:55 pm

I'm afraid I disagree with MS on the power of the ATO. There is far too much power in that dept.

However saying that you are in good shape if you want repatriate the funds. You have paper statements from Singapore CPF and that's really all the proof you need. The bank in Australia may ask about the source of the funds but show them the CPF statement and it's all good. The fact that you have declared and paid Aussie interest on the interest earned while tax resident fully entitles you to bring the funds back in with no penalty. Word of warning: use a reliable proper method of transferring the money (bank to bank TT) - don't try to be clever and save money by using a third party - too many people get burned that way.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

Cohen123
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Re: Bank Account after renouncing SG-ship

Postby Cohen123 » Mon, 11 Feb 2019 5:19 pm

Hello,

I had a terrible time with U** bank trying to withdraw some money sometime back. They refused to entertain any form of ID another than the pink IC. I showed them my driving license but they would not accept it.

Hence that’s why I am asking how to maintain a bank account in SG, have the CPF money deposit in it and then TT over.

The reason why I am contemplating transferring from SG bank to AUS bank is that
(1) withdrawal form doesn’t require bank verification from U** bank in SG. And I am unsure of the bank verification process.
(2) The exchange rate is much better converting from SGD to AUD from U** bank, rather than the bank rate used in AUD bank.

As an older person, my apetite for risk is lower. I am not good on buying shares. Something low risk like a fixed deposit, maybe. Your idea of a private super is something I will be looking into. Thank you. I remember being told there will be limits to what you can deposit in another forum.

I called U** on the phone regarding alternative forms of ID but the helpline could not give me an answer. They said I could use a passbook but I should show my IC. They just kept repeating that. I think this is a question beyond the helpline.

I won’t be using any of those TT services. Some of the people have run into problems using those services.

(1) Has anyone transferred their CPF into their overseas account ?
(2) Can anyone clairify what is needed to deposit directly into overseas bank
(3) what are the bank verification process requirements on the CPF form ?

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PNGMK
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Re: Bank Account after renouncing SG-ship

Postby PNGMK » Mon, 11 Feb 2019 8:57 pm

1/2/3 is just a matter of filling in your aussie account number, the Swift code and the name of the account.

If you need a Singapore account without and IC you may need to open a new account with new ID (your aussie PP for example).
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

Cohen123
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Re: Bank Account after renouncing SG-ship

Postby Cohen123 » Tue, 12 Feb 2019 8:43 am

Hello,

Kind sharong from someone that I would be given a renunciation letter at ICA. With this letter, I can approach the bank to change details.

Also the renunciation at ICA, presenting yourself in person will take about 6 weeks to process. Only after that, will they issue a letter for the CPF to withdraw funds. That will take another 2-3 weeks.

It looks like I will not be able to get the renunciation and withdrawal in just one trip.

Does anyone know if after getting the confirmation letter for renouncing, do you need to send the documents to CPF in snail mail or will email do? I hate to lose the confirmation letter in the mail.

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Re: Bank Account after renouncing SG-ship

Postby Mad Scientist » Tue, 12 Feb 2019 9:02 am

From my experience, I had no problem with DBS and Citibank.
Bear in mind , I had this done many years ago and rules may change. Once I had the CPF withdrawal approved from CPF, I showed them my POSB account to the CPF officer as POSB and DBS account remittance is done on the same day whereas other banks will receive the funds into your account on the next business day
I went over to DBS, showed them my OZ PP and copy of my SG ID , passport and the renunciation letter from ICA. They had all the info about myself change it on the spot in their system and confirmed funds received from CPF board on the same day.
I did the same with Citibank. No dramas
I had a standing order prepared with Citibank and DBS if I need any remittance done back to OZ. I supplied them CBA account etc... Its done
Agreed, every individual has their own needs and priority to be taken care of first. The older we get the less we are open to risky investment
I don't pay tax in OZ as I reside in NZ 186 days in a year hence my super is in NZ. I pay tax in NZ and my residual tax is bugger all for ATO.
I have a OZ private super which I had for many years now
What I am trying to convey is interest earned in Singapore is not tax deductable. If you need only some money to get by living in OZ , leave the bulk in Singapore in TD/FD or any related instruments that you are comfortable with
I am not forcing you to follow my footstep , I am just sharing what I know
What PNGMK wrote above is all you need for remittance
The positive thinker sees the invisible, feels the intangible, and achieves the impossible.Yahoo !!!

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Re: Bank Account after renouncing SG-ship

Postby The Ref » Tue, 12 Feb 2019 9:18 am

Cohen123 wrote:The reason why I am contemplating transferring from SG bank to AUS bank is that
(1) withdrawal form doesn’t require bank verification from U** bank in SG. And I am unsure of the bank verification process.
(2) The exchange rate is much better converting from SGD to AUD from U** bank, rather than the bank rate used in AUD bank.


Dont use the standard bank rates, they are terrible.
Best option is CHC - Cold Hard Cash but that is only for a few tens of thousands depending on how many trips / people travelling. The Singapore Money Changers give the best rates.

For the rest use a remitter. I use OFX but there are many and google for which have the best rates. I started when it was OzForex almost a decade ago when the rates were the best I could find, but I havent really reviewed since. What I did find recently is the rates for a SG based account were better for an AU based account, but that may depend on which way the currency is short - and may be different daily so checkrates across a few and pick the one that is best. If you make the cutoff times you can move in less than 24 hours (assuming the accounts are verified which can take a day or 2)

A
P.S. As PNGMK stated, dont go for a dodgy third party - OFX is regulated and reliable:
We're regulated by MAS (Monetary Authority of Singapore) and our parent company is listed on the Australian Securities Exchange (ASX).

(I have no connection other than as a user)


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