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Singapore Tax Question

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ultimaweapon
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Singapore Tax Question

Postby ultimaweapon » Sat, 02 Jul 2016 8:47 am

I've a question and hope someone will advise on this.

Based on the IRAS website,
You will be regarded as a non-resident of Singapore for tax purposes if:
If you are here for 61 to 182 days
Your employment income is taxed at 15%

But another page states:-
(See example 2)
If you stay or work in Singapore for a continuous period of at least 183 days straddling two years , you will be regarded as a tax resident for the two years under the two-year administrative concession.
2015 ->3 Nov 2014 to 31 Dec 2014 (59 days) Resident
2016 -> 1 Jan 2015 to 7 May 2015 (127 days) Resident

Under what condition for the two-year administrative concession?
I'm expected to start work from 15 Aug 2016, so how do I calculate this?
How much I'll be paying will be based on which rates?

I've also heard that for expats, usually after about
18 months of working before any tax is paid?

Thanks for the advice!

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Strong Eagle
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Re: Singapore Tax Question

Postby Strong Eagle » Sat, 02 Jul 2016 10:19 am

A couple of things. If you have a two or more year employment pass, they will grant you resident tax status automatically.

If for some reason they did not, you would be taxed at the non-resident rate the first tax year and you would receive a rebate for the second tax year when you did qualify for the resident rate.

Term of residency is usually from the first valid day of your EP to the last, regardless of when you actually started work.

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Re: Singapore Tax Question

Postby sundaymorningstaple » Sat, 02 Jul 2016 11:55 am

SE, Residency starts from the first day of entry into Singapore so if you were here on a 90 day visa and spend 60 days here looking for a job and got one, your residency (physical presence test) started the day you arrived. But yeah, if you are granted a 24 month EP, even if it was in say end of November, you would automatically be given resident rates. If not, as SE already mentioned.

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Re: Singapore Tax Question

Postby ultimaweapon » Sat, 02 Jul 2016 3:16 pm

I see, so my EP is for 2 years and thus I will be counted with resident tax rate.
Ok that's good to know. Thanks for the advice! I appreciate it. :D

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Re: Singapore Tax Question

Postby the lynx » Mon, 04 Jul 2016 3:07 pm

Another note to point out is that if you have a 2-year EP and you start working in second half of the year (hence being in the country for less than 183 days for the resident tax rate) and/or your earnings in that part of the year is less than taxable amount, you will be tax-exempted for that year and will only be required to pay the required tax in the next assessment year (as resident tax, of course).

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Re: Singapore Tax Question

Postby ecureilx » Mon, 04 Jul 2016 8:43 pm

ultimaweapon wrote:I see, so my EP is for 2 years and thus I will be counted with resident tax rate.
Ok that's good to know. Thanks for the advice! I appreciate it. :D


In case you are not confused enough, here's my 2 cents :D

Keep money aside for non-resident rate, which, as SE said, can be levied but rebated the next year.

And be surprised if you are given resident rate :D

Makes more sense ?

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Re: Singapore Tax Question

Postby ultimaweapon » Mon, 04 Jul 2016 8:52 pm

I think I'll just pray for the non-resident rates :-" :-" :-"

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Re: Singapore Tax Question

Postby Strong Eagle » Mon, 04 Jul 2016 11:03 pm

ultimaweapon wrote:I think I'll just pray for the non-resident rates :-" :-" :-"


I have found IRAS to be very fair minded about tax issues. They will _probably_ assess you at the resident rate even if you didn't make 183 days in the tax year.

I say _probably_ because if you are working on a 2 year EP and you are working for a known company, then the odds are good you are going to qualify for the resident rate. If you are working for a company that is unknown or has a history of short term employment passes, then that will be taken into account and you might be assessed at the non-resident rate, which is 15 percent or the resident rate, whichever is larger.

Let's say you drag down $200K... your non-resident tax bill is $30K. Your resident tax bill is $20,750, so you really only need to cover an additional $9,250 in the event that you were taxed as a non-resident.

And, if you qualify in the next year for resident rates, that $9,250 would be applied to your current tax bill.

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Re: Singapore Tax Question

Postby ultimaweapon » Tue, 05 Jul 2016 6:33 am

Just imagine that S$9,250 is about 45% of S$20,750 and the things that that amount of money can do and you might not want the non-resident rates anymore. But yes, I understand that there will be rebates later but the pain from the pinch is not a minor one. :D

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Re: Singapore Tax Question

Postby ecureilx » Tue, 05 Jul 2016 6:48 am

ultimaweapon wrote:Just imagine that S$9,250 is about 45% of S$20,750 and the things that that amount of money can do and you might not want the non-resident rates anymore. But yes, I understand that there will be rebates later but the pain from the pinch is not a minor one. :D


if you earn 200K and still feel the pinch .. :D :D Man, I am far, far from that and I don't complain ..

Well, you can always opt for the monthly installment scheme that IRAS offers ...

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Re: Singapore Tax Question

Postby sundaymorningstaple » Tue, 05 Jul 2016 6:51 am

Of course, you can turn down the offer if you don't like the rules here. Nobody is twisting your arm. After all, it is their ball park, their ball and their rules, you want to play ball here, that's the way is is. Your decision, now ours.

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Re: Singapore Tax Question

Postby ultimaweapon » Tue, 05 Jul 2016 8:15 am

sundaymorningstaple wrote:Of course, you can turn down the offer if you don't like the rules here. Nobody is twisting your arm. After all, it is their ball park, their ball and their rules, you want to play ball here, that's the way is is. Your decision, now ours.


No, I'm not complaining nor do I not like it. Rules are rules, I've got to accept it whether I like it or not. Thanks for the clarifications anyway, it was very clear.

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Re: Singapore Tax Question

Postby BBCWatcher » Tue, 05 Jul 2016 9:00 am

Enroll in the GIRO monthly installment plan for paying your taxes to IRAS. Then forget about taxes, except for the annual online filing ritual. If you cannot handle that then you probably aren't a foreign talent worthy of an Employment Pass.

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Re: Singapore Tax Question

Postby ultimaweapon » Tue, 05 Jul 2016 9:18 am

BBCWatcher wrote:Enroll in the GIRO monthly installment plan for paying your taxes to IRAS. Then forget about taxes, except for the annual online filing ritual. If you cannot handle that then you probably aren't a foreign talent worthy of an Employment Pass.


I apologize if I gave an impression that the tax was troublesome. I'm sorry. The tax and rates were totally not a big issue, it's definitely something practical and I had always thought so. The original idea was just to clarify the rates. I also thought it would be a relaxing forum where everyone can discuss things without feeling being degraded.

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Re: Singapore Tax Question

Postby BBCWatcher » Tue, 05 Jul 2016 9:53 am

ultimaweapon wrote:The original idea was just to clarify the rates.

OK then, it's a flat 15% unless it isn't. And for most people it isn't.

If your decision on whether to work in Singapore hinges on whether the tax rate is resident or non-resident, and on the monthly (in arrears) cash flow implications thereof, then I don't recommend coming to work in Singapore since you simply cannot avoid this potential financial risk. You could end up with either rate depending on how your employment proceeds (or doesn't).

I don't think IRAS's Web site is confusing on this point, by the way. That's part of the frustration with your question.


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