wfhmom wrote:Hello,
There have been plenty of threads on this topic and also I went on MOM website and researched. However, I have a slightly different issue and help would be much appreciated.
My husband and I are US Citizens and my husband is currently on EP here in SG and I arrived in Singapore on DP; past Monday. My company in US, still wants me on board and continue working remotely (part time for 3 months - my request and then go back to being full time). I would be reporting to my department and company in US. Everything seemed to be okay until last week.
My company has an office here in Singapore and though i would not be working or reporting to the Singapore office, there seems to be some legal issues and HR on both sides are dragging their feet. Since Singapore office is saying that there are legal issues involved; I am trying to understand what they are.
I would appreciate some advise and information. Would I be able to continue working if I got Letter of Consent? Can I work on DP for US company without getting the Singapore Office involved? What are my options so I can still work? Do I need to be full time to get LOC or able to work? What are the tax implications? Do I still pay taxes to both countries?
Please advise.
Thank you!
I am not a lawyer, and, I am almost certain that you will need an EP to work for the company. The reason is this: The chances are very high that the Singapore company is a private limited company with all the stock wholly owned by the parent company in the USA. Therefore, the company has a legal presence in Singapore, therefore you must have an EP.
I have previously communicated with MoM regarding working for overseas companies, and their response has always been clear: If the company provides no products or services in Singapore and/or has no legal presence in Singapore, then you don't even need a LOC for you are not working for a Singapore entity. You do still need to file income tax returns since you earn your pay while living in Singapore.
You can say that you are working for the US company, and even being paid by them but I don't think that will fly. There are lots of people in Singapore who work for wholly owned subsidiaries of American companies that are paid out of the American company budget. They still need EP's and they still pay Singapore personal income tax.
You would have a very large challenge proving that the remote work you did in no way affected the operations of the Singapore company, and I judge that MoM will simply refuse to open that can of worms for the reasons stated above.
Edited to add: You could work for the local Singapore company on a DP with a LOC but I bet you'll have to deal with a bunch of HR dunderheads in the Singapore office to get this sorted out. It would really be very simple. You are seconded to the Singapore company by the US company. The company applies for LOC. An accounting entry is setup so that the salary paid to you by the Singapore company is repaid by the American entity (or for that matter you can be paid directly by the American company into any bank account you want). Lots of MNC's put foreign employees into Singapore using this arrangement (on EP, generally, but the process is the same).
Edited again to add: In general, one always pays personal income taxes for earned income to the country in which you are living while the work is being performed. Therefore, you will pay Singapore income taxes, no matter the source of the income or your final legal status as elaborated above.
However, the USA is one of three (I think) countries that taxes its citizens on earned income, no matter where it is earned. This is mostly, or at least partially, offset by the foreign earned income exclusion, which is $102,100 for 2017. Be aware that your husband is in the same boat, and if you are married and filing jointly, things get more complicated. You'll really want a US based accountant to sort the bits and pieces.