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Singapore tax and other salary deductions

Discuss about getting a well paid job or career advancement. Ask about salaries, expat packages, CPF & taxes for expatriate.

tiebushan
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Singapore tax and other salary deductions

Postby tiebushan » Wed, 24 Jun 2015 7:06 pm

Hi all,

My current employer is offering me a full-time position (move permanently to Singapore)
My question is, as of now, I'm only aware of 2 deductions to your salary : CPF and income tax.
I'm single with no dependents.
According to this excel I downloaded from IRAS
https://www.iras.gov.sg/IRASHome/upload ... 1_IRAS.xls

I'll only be taxed at around 3.4% if I earn 7000/mo (84000 p.a.). Is this correct. And my pay will also be deducted further by 20% for CPF. Is this true that the income tax rate is so low in SIngapore? only 3.4%?
and also regarding CPF, can I withdraw all of them when I'm leaving Singapore?
thanks

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Re: Singapore tax and other salary deductions

Postby Strong Eagle » Wed, 24 Jun 2015 8:43 pm

Unless you are a PR you will not pay any CPF. Rates are dependent upon age and how long you have been a PR. Typically, the CPF rates are 17% for employer and 20% for employee (and some employers take both out of your paycheck), but the max salary cap on which CPF is collected is $5,000 so you don't pay the full percentage. You get it all back plus interest when you give up PR.

Singapore income is graduated. Your income tax on $84,000 will be $3,810, yielding an effective tax rate of 4.54%.

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Re: Singapore tax and other salary deductions

Postby sundaymorningstaple » Wed, 24 Jun 2015 8:57 pm

tiebushan wrote:Hi all,

My current employer is offering me a full-time position (move permanently to Singapore)

No such thing. You can move here and stay here as long as you have some sort of residency. The most you current employer can do is "hopefully" get you an employment pass (EP) or a work permit (WP). These are generally good for 24 months at a time and then hopefully the Ministry of Manpower (MOM) will renew it. Very good possibility of two things happening here: a) your employer cannot get you an EP or WP because there are ample locals here with your academic and experience qualifications, or: b) you will get it for two years and on renewal, upon a further tightening of academic and experience criteria (and salary quantum) you are no longer meet the criteria and your renewal is rejected. This has been happening a lot in the past three years as MOM is cutting back heavily on foreign talent (I use that term loosely). The offer might be permanent but the government will ultimately determine whether or not that is actually the case. After you have been here around 2 or 3 years, you can apply for permanent residence (PR). "That" is a permanence that you can plan on.

My question is, as of now, I'm only aware of 2 deductions to your salary : CPF and income tax.

You have NO deductions other than your dependents and as you are single. You will not pay CPF as that is only payable by the Citizens and PRs (see earlier comments). You will also not have income taxes deducted from your salary unless the employer is just keeping it as Singapore's Inland Revenue Authority of Singapore (IRAS) does not use the PAYE system that a lot of western countries use (like the US). Therefore if you are resident in Singapore (not necessarily PR - but in the country on a resident type of visa (EP/WP/PEP/PR,- only the PR is permanent), you will be taxed at resident rates like the SC & PRs, which is a graduated rate. If, in the first year here you are here less than 183 days you will be taxed at a flat 15% but once you pass the 183 day minimum residency (straddling two contiguous years) you can file an amended return and the difference will either be credited to your bank account or applied to the next year's taxes. Taxes have to be filed no later than 15 April and you will get your tax bill sometime around July~August and it's normally payable in full upon receipt of tax bill. There is a way of paying if off monthly using a GIRO account however, but it's after the fact and not prepaid taxes by payroll deduction.

I'm single with no dependents.
According to this excel I downloaded from IRAS
https://www.iras.gov.sg/IRASHome/upload ... 1_IRAS.xls

I'll only be taxed at around 3.4% if I earn 7000/mo (84000 p.a.). Is this correct. And my pay will also be deducted further by 20% for CPF. Is this true that the income tax rate is so low in SIngapore? only 3.4%?

Your effective tax rate (taxes of $3,810) would be more like 4.5%. The Personal Income Tax Rebate (50%) may not be available for the YA2016 (for income earned in 2015). The calculator is for YA2015 (income earned in 2014). Any income earned from 80K to 120K will be taxed at 11.5%

and also regarding CPF, can I withdraw all of them when I'm leaving Singapore?

You will not be having any CPF deducted unless you eventually become a PR. But yes, if you are an abuser like some we know, who take up PR and then leave, thereby depriving individuals/families who actually WANT to stay here, you can withdraw ALL including the interest earned. However, if you do that, you can forget EVER coming back to Singapore.

thanks

tiebushan
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Re: Singapore tax and other salary deductions

Postby tiebushan » Wed, 24 Jun 2015 9:15 pm

@sundaymorningstaple:
wait, so if I withdraw all my CPF once I got my PR, I'll be banned forever from entering Singapore? because if I dont work in Singapore anymore, then there's no reason to stay there anymore. Although no plans have been made, but it's a possibility that in the future, I might be relocated to other countries. thanks

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Re: Singapore tax and other salary deductions

Postby JR8 » Wed, 24 Jun 2015 9:22 pm

TBS:
@sundaymorningstaple:
wait, so if I withdraw all my CPF once I got my PR, I'll be banned forever from entering Singapore? because if I dont work in Singapore anymore, then there's no reason to stay there anymore. Although no plans have been made, but it's a possibility that in the future, I might be relocated to other countries. thanks


You don't pay CPF until at least PR, so for a new arrival if it happens at all, that issue re: deductions/withdrawals etc is at least 3 years away, perhaps much longer, if at all.
Moral of the story, don't apply for PR unless you intend to live out your days here. Simple.
'Do it or do not do it: You will regret both' - Kierkegaard

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Re: Singapore tax and other salary deductions

Postby sundaymorningstaple » Wed, 24 Jun 2015 10:37 pm

tiebushan wrote:@sundaymorningstaple:
wait, so if I withdraw all my CPF once I got my PR, I'll be banned forever from entering Singapore? because if I dont work in Singapore anymore, then there's no reason to stay there anymore. Although no plans have been made, but it's a possibility that in the future, I might be relocated to other countries. thanks


You must be one of the new breed of "foreign talent" (the ones without the talent part). Please. Go. Back. And. Reread. My. Post. And then tell me where I said you could withdraw all your CPF once you got your PR. You will go a lot further in this world if you learn to read for content. Nowhere did I say that. You cannot even contribute to CPF unless "YOU ARE A PR". ](*,)

If you give up your PR, YES YOU CAN WITHDRAW ALL OF IT. but you will have a hard time returning to Singapore to work again if you do.

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Re: Singapore tax and other salary deductions

Postby Wd40 » Thu, 25 Jun 2015 11:25 am

OP is counting chickens before they hatch. You getting PR is equivalent to striking a lottery. Wait, actually striking a lottery is easier.

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Re: Singapore tax and other salary deductions

Postby sundaymorningstaple » Thu, 25 Jun 2015 1:39 pm

^^This.

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Re: Singapore tax and other salary deductions

Postby sundaymorningstaple » Thu, 25 Jun 2015 1:50 pm

I almost think our friend is a troll wannabe, truth be known. Claims he's an aussie, also claims he worked in Singapore before (but doesn't know the answers to common questions regarding CPF, etc). Currently posting from an Indo IP address, but when he was here before (supposedly according to the post) but the IP was a US one. Something has a pong to it and it seems to be getting stronger.

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Re: Singapore tax and other salary deductions

Postby natevickery » Thu, 02 Jul 2015 6:28 pm

I don't know if the OP is a troll or whatever, but I reckon many people need genuine answers about taxation laws in Singapore. When I was researching this topic I found that you can get most answers on this page http://www.......m/personal-tax-filing/. They even have a handy calculator to make thigns easier


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