Tax Allowance

[benjiiiiii]

Hey all

I have been earning in Singapore since 1st October, and am here for the next 24 months atleast. I have an EP. I am making $131,000 per annum. How much am I likely to be expected to pay in tax in December/January when they send the tax bill?

Many thanks,
Ben

[sundaymorningstaple]

If your EP is valid for 24 months, you will, in all probability only be assessed using resident rates which means using the graduated tables instead of having to pay the flat 15% as a non-resident for YE2014. Normally, if you are on an EP with a duration spanning one full tax year and partial years at each end, they will use resident rates and not the penalty 15% non-resident rate.

However, I'd try to keep 15% available for your 2014 taxes on the off chance that they don't. If you are taxed at 15% it will be recomputed when your 2015 taxes are computed and the excess offset against your total liability for YE2015. Or, you can wait until you have been here the required number of days (over 183 days) and then file an amended return to reclaim the overpaid taxes. As you are only talking two months vrs say 5 months, personally, I'd just ride it out if you are able. (if they whack you for the 15% but it's not likely).

[benjiiiiii]

Ok, thank you.

Is there an online portal where I'm able to check what they're expecting, or should I just anticipate the bill?

As I've only been earning since October here, someone mentioned to me that I may not hit the tax requirement for this year (Dec/Jan), is there any truth to that?

Many thanks,
Ben

[sundaymorningstaple]

Incorrect. Just hold back 15% of your salary for safety purposes (they will bill you around July or Aug). The 60 day no tax is if your job was 60 days or less and completed (not ongoing as in your case) You would have had a visa probably for 60~90 days only if that were the case. Save 15% to be on the safe side, but not to worry as IRAS is pretty clued in so you probably wont be billed for that amount.

[ecureilx]

Ok, thank you.

Is there an online portal where I'm able to check what they're expecting, or should I just anticipate the bill?

As I've only been earning since October here, someone mentioned to me that I may not hit the tax requirement for this year (Dec/Jan), is there any truth to that?

Many thanks,
Ben

this will give you a ball park figure, but not 100% accurate !!

Accurate figure will be upon assessment

http://www.iras.gov.sg/irashome/taxcalculators.aspx

[the lynx]

Actually if you're going to stay for 24 months since Oct 1st, which means during the next assessment (2015), you will not be taxed because of the 183-day rule and also because of your 24-month stint. You will receive a notification letter that says so. This is based on my experience and two employments that commenced very close to the end of the year (hence the 183-day rule).

Instead it will roll over to the next assessment year (2016) where you will be taxed in full resident rate, depending on your income bracket and further assessment.

Hope this helps. I agree with SMS that you should have the habit of putting aside your money for income tax (aim for that 15%). Better to pre-empt and have spare cash in the end than to fork out a huge chunk of your monthly salary in one shot.

Refer the IRAS website if you want further details.

[sundaymorningstaple]

the Lynx,

Just a small clarification. The 60 day rule and the 183 day rule both mean total "days in Singapore" and not just for days of continuous employment, or days holding an employment pass. If you were on two jobs during the year, even with a gap between them, as long as the total days in Singapore exceed the 183 days, you are good to go. In fact you could have been here on a 90 day visa and got a job just 4 months before the end of the year and made the 183 days. That's why, when you do an IR-21 (Tax Clearance) they always ask you for the date you entered Singapore as that is the date they use for the 183 days figure.