But you also pay 20% CPF, right? That would bring the total payable rate to ~27%, or is CPF optional?MikeJones wrote:Certainly go for more money if you canOne thing to factor in though is the tax rates, not sure what Luxembourg income tax is like but usually Singapore taxes are much lower than Europe. In my case in the UK I was paying around 30%, here my salary is roughly equivalent (or was pre Brexit) and my tax rate is around 7%. So while cost of living is higher here, especially accommodation, you do have a lot more of your salary to spend.
Mike
Some companies will give you a monthly salary increment to cover the CPF your not receiving... one more avenue for negotiation. The CPF percentages are 17% employee and 20% employer on the first $6000 / mth.MikeJones wrote:CPF is only payable by citizens and PR holders so you won't be paying that unless you get PR.
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Ok, but if you're not a PR holder then you pay 15% income tax rate, correct?MikeJones wrote:CPF is only payable by citizens and PR holders so you won't be paying that unless you get PR.
Ok thanks for clarifying, I was a bit confused with that.MikeJones wrote:No, the 15% rate is only if you are non tax resident i.e. In the country less than 6 months, you may have to pay that rate the first year depending on when you arrive.
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As noted, the 15% is for either non-resident or short term of less than 183 day in the year. However, to minor corrections to understanding of MikeJones answer which, generally speaking, is okay. a) it's not necessary to work in the country for 6 months, but to be 'in' (physically present) the country for more than 183 days. This will get you resident graduated tax rates. And b) if you are here less than 183 days (e.g., liable for non-resident rates) but are given an EP (Employment Pass) that is valid for at least 12 months, normally IRAS will just use the graduated resident rates, knowing you will meet the qualifications in the following year (most are given for 24 or 36 months - vast majority are 24 months). If they DO whack you for 15% after you are here for 183 days, you can amend your previous return to get back the excess taxes paid. They are pretty cool about it.Eboard10 wrote:Ok thanks for clarifying, I was a bit confused with that.MikeJones wrote:No, the 15% rate is only if you are non tax resident i.e. In the country less than 6 months, you may have to pay that rate the first year depending on when you arrive.
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So as an expat working there full-time for more than 6 months in the year, I would pay the normal progressive tax rate and not need to contribute to CPF. My perceived net amount just went up by a bit
Foreigner who has stayed / worked in Singapore (excludes director of a company) for 183 days or more in the previous year. i.e. the year before the YA.
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