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Advice needed for CPF & Tax (Investor)

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nnlu1867
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Advice needed for CPF & Tax (Investor)

Postby nnlu1867 » Mon, 07 Nov 2016 10:41 pm

Hi All,

I am an individual Singaporean and I invest in property development projects and businesses in developing countries as an individual and also invest in the Forex market. I handle everything alone and do not have any employees.

I am intending to pay tax to IRAS and contribute to CPF. However, how should I go about that ?

Would I be considered self-employed, sole proprietor or would I have to start a Pte Ltd and put myself as a director ?

Please advice.

Thank you

PNGMK
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Re: Advice needed for CPF & Tax (Investor)

Postby PNGMK » Tue, 08 Nov 2016 9:59 am

I would go the self employed route. If you talk to CPF they are very helpful about this. You essentially register a CPF payment number and log on every month to fill in the form and make the payment.
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Strong Eagle
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Re: Advice needed for CPF & Tax (Investor)

Postby Strong Eagle » Wed, 09 Nov 2016 9:56 pm

nnlu1867 wrote:Hi All,

I am an individual Singaporean and I invest in property development projects and businesses in developing countries as an individual and also invest in the Forex market. I handle everything alone and do not have any employees.

I am intending to pay tax to IRAS and contribute to CPF. However, how should I go about that ?

Would I be considered self-employed, sole proprietor or would I have to start a Pte Ltd and put myself as a director ?

Please advice.

Thank you


It depends what you want. If you register a sole proprietorship, then your only CPF obligation is to contribute to Medisave. Contributions to other CPF components is voluntary. Bottom line: You can contribute in amounts as though you were employed but are not required to do so.

If you form a Pte Ltd, you, as director, will be an employee of the company. Note that wages and salaries paid to you as a director are subject to CPF contributions by both employer and employee. However, any directors fees paid are subject to income tax but not CPF.

Thus, you can pay CPF with either legal entity. SP is simpler to setup and maintain, a Pte Ltd provides a legal shield that separates business and personal assets.

FMaccounting
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Re: Advice needed for CPF & Tax (Investor)

Postby FMaccounting » Thu, 15 Dec 2016 11:46 pm

You may want to do a cost-benefit analysis on the tax benefit that you are getting under different tax scheme.


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