You file the returns, and IRAS will send their assessment.eekwan7 wrote:Hi all,
I have arrived in Spore on 27th July 15 and started working in Spore from 29th July 15 until now. And I have recently received a letter from IRAS about income tax system in Spore. In the letter, it states that if someone work or stay in Spore for less than 183 days, he/she will be taxed at the non-resident tax rate of 15%.
So, I am wondering if I would be taxed at 15% for this year of assessment (2015)? That would be quite a huge amount of money being taxed by the government.
FYI, I am holding EP pass with a 2 years validity. I will be much appreciated if someone will clarify this matter for me. Thank you.
So, that means I don't have to pay 15% flat rate during my first year (2015) as long as I am able to work for at least 12 months and a day?sundaymorningstaple wrote:If you have a valid EP that is good for over 12 months you will automatically be given the resident rate, however, if you don't stay for the given 12 months, then when your tax clearance (IR-21) is filed by the employer, they will recalculate your taxes based on the 15% non-resident flat rate. So if you came in the 2nd half of the year, you best ensure you keep your job for at least 12 months and a day.
+1sundaymorningstaple wrote:. I would just make sure you kept the 15% handy and then wait for the tax bill. If taxed at resident rates, then go on a vacation.
What do you mean by 'taxed by the first partial year'? And what if the total salary earned during this period (from July 15 to Dec 15) is less than 20K, with an EP of 2 years validity? How much will I be taxed then?sundaymorningstaple wrote:Normally, you will be taxed on that first partial year if you are on an EP of at least 12 months duration. (Provided which you have earned a minimum of 20K during that period - assuming you DO have an EP of at least 12 months). At least that has been the experience I've encountered with staff over the past 20 years as an HR functionary. A lot would have to do with the industry I would guess, as well, as some industries hire on contract basis and they could apply for 12~24 months visas but only work somebody for 4 or 5 months. This probably has been tracked by industry and employers I would think, and they would then tax accordingly. I would just make sure you kept the 15% handy and then wait for the tax bill. If taxed at resident rates, then go on a vacation.
Yes, it will be around 150 days. So, as long as I continue to work in the current company for the 2 years of EP, I will be declared as resident tax rate?Strong Eagle wrote:He means that you will be taxed for the period 19 July through December 31. Your employer will file an IR8A for the amount you have earned.
In all likelihood, with a 2 year EP, you will be taxed at the resident rate, no matter what your salary is. There is no tax if you earned less than $20,000.
But if you fail to meet the overall time requirement and leave your company, the government will declare non resident tax and demand payment. The tax is 15% on all income. By my calculations, you will have been in Singapore 157 days as of December 31.
The reality of it is a wee bit different than what the above poster states.bestar_secretarial wrote:If IRAS tax rules applied strictly:
Year 1: you will be taxed at 15% flat rate (exemption is for people working less than 60 days in a year) as you do not stay more than 183 days in a year (or did you I mean stay not work)? If you have stayed more than 183 days, congratulations, you are deemed a tax resident. If you are taxed 15%, make a trip to IRAS with your passport.
Year 2: You will be tax at resident rate;
Year 3: If you stay through to 3rd calendar year, you will be taxed at resident rate no matter how long you stay --- when a person works 3 consecutive years in Singapore (be it partial in Year 1 and 3), you will be assessed resident status for all the 3 years --- so given this, you may go back to IRAS to get reassessment on Year 1 and get back your money based on resident rates
(For Year 1, I only heard cases of leniency if you get 2 years' EP etc, but I am really not falling for that. And, if you are a mom-resident, the S$22K min will not come into play, you will pay flat 15% on whatever is your earnings).
Tell you what, go down you Revenue House at Novena, spell your case and friendly (and many a time pretty) officers will attend to you with all the good answers from the horse's mouth. Ours is the friendliest tax people in the world.
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