Singapore Tax Question

[Strong Eagle]

I also thought it would be a relaxing forum where everyone can discuss things without feeling being degraded.

I think that the phrase, "Just imagine that S$9,250 is about 45% of S$20,750" caught most folks attention. While $10K isn't pin money, I lost twice that much in a Singapore libel lawsuit... if you're going to make these kinds of moves into uncharted territory, it's best to be prepared for unknown situations and consequences.

This group of muppets really is OK... you ought to drop over to the Singapore angry board if you really want to be humiliated.

[ultimaweapon]

Alright, I guess I've learnt my lesson. I'll watch what I say. I started with wrong foot and got a huge negative vibe. Thanks.

[deenubehara]

Hi Guys,

I have been in Singapore for last 3 months on an EP(2 years validity). Now I have a new offer from another employer based in Singapore. So if I switch the job now, since I am working with current employer for only last 90 days, during Tax clearance will I be charged Non resident tax rates or Resident tax?

I am sure incase of leaving the country, I will have to pay Non-resident tax rates. But in this case, I am switching job to a new employer in Singapore itself. So I am confused. Please help.

[BBCWatcher]

If you are subject to tax clearance, it's up to IRAS to decide. IRAS's decision will likely depend on the facts and circumstances of your EP switch and how "clean" it is. Don't be too surprised if IRAS assesses the higher tax rate (almost always the non-resident tax rate).

My advice: don't worry about it. You don't get to make this decision; IRAS does. If you're assessed the higher tax rate, that'll simply be an advance payment on your future, lower tax rate if you become eligible for the lower rate. In other words, if your resident rate is lower, and if you qualify for the resident rate in the future, then you'll pay less tax (or even possibly get a refund) to compensate for the higher tax you're paying now. If you cannot tolerate possible withholding of the higher tax rate from your final paycheck -- if that possible variation in cash flow bothers you -- then don't change jobs.

[sundaymorningstaple]

Hi Guys,

I have been in Singapore for last 3 months on an EP(2 years validity). Now I have a new offer from another employer based in Singapore. So if I switch the job now, since I am working with current employer for only last 90 days, during Tax clearance will I be charged Non resident tax rates or Resident tax?

This will depend on your current employer. Are you in good graces with them? Do they know you are leaving for another local employer? Is it a competitor? Your current employer will determine what tax rates will be withheld to a large extent. On the IR-21 (Tax Clearance on-line form) if they indicate for the question "Is the employee being re-employed in Singapore", No, then IRAS will tell them to withhold at the Non-resident rate. If "Yes", then in all likelihood, they will check with MOM for a valid IPA and if found, they will probably instruct the employer to deduct based on resident rates. So hopefully you haven't p*ssed off your current employer.

I am sure incase of leaving the country, I will have to pay Non-resident tax rates. But in this case, I am switching job to a new employer in Singapore itself. So I am confused. Please help.

sms

[BBCWatcher]

Are you in good graces with them?

That's a good question. I assumed "no" in my answer. An employer brought an employee to Singapore on an Employment Pass, then the employee "thanks" that employer by jumping ship after the ink is barely dry. Unless that new employer is an affiliate of the first employer, an employee who behaves that way isn't likely to have an amicable parting. But maybe it is amicable, nonetheless.

Either way, it's only a question of cash flow variation: the possibility of paying a little more tax now and a little less tax later. IRAS will balance out the tax rate to whatever it's supposed to be, eventually. And (unfortunately) IRAS's decision is beyond the employee's control. So..."don't worry about it." Just be prepared to pay more of your taxes in advance (or less in arrears), and be pleasantly surprised if you're not required to do that.

[deenubehara]

Thank you so much BBCWatcher and Sundaymorningstaple.
Really appreciate your quick reply.