15% provision tax?

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ventolin
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15% provision tax?

Post by ventolin » Thu, 20 Jul 2017 3:40 pm

So I started working in Singapore on February 1 but due to unforeseen circumstances at home I had to leave my job and return to my home country. My last day is August 14.

Today I received an e-mail from my HR that says that I have to pay a whole chunk of money to them as the 15% provision tax. They said I "might" have worked for longer than 60 days but less than 183 days. But I calculated the time between the dates and it's 194 days? Is this common???

I wonder if the amount will get refunded once IRAS processed the whole thing?

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ecureilx
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Re: 15% provision tax?

Post by ecureilx » Thu, 20 Jul 2017 5:28 pm

ventolin wrote:So I started working in Singapore on February 1 but due to unforeseen circumstances at home I had to leave my job and return to my home country. My last day is August 14.

Today I received an e-mail from my HR that says that I have to pay a whole chunk of money to them as the 15% provision tax. They said I "might" have worked for longer than 60 days but less than 183 days. But I calculated the time between the dates and it's 194 days? Is this common???

I wonder if the amount will get refunded once IRAS processed the whole thing?
Yes, Employer can hold the Last month salary for paying Income Tax dues, or you can work out an agreement and pay, that's entirely up to the employer to agree.

Wait for the IRAS clearance and the employer to return the excess. They MUST return the excess once IRAS gives a final amount.

ventolin
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Re: 15% provision tax?

Post by ventolin » Thu, 20 Jul 2017 7:27 pm

ecureilx wrote:
ventolin wrote:So I started working in Singapore on February 1 but due to unforeseen circumstances at home I had to leave my job and return to my home country. My last day is August 14.

Today I received an e-mail from my HR that says that I have to pay a whole chunk of money to them as the 15% provision tax. They said I "might" have worked for longer than 60 days but less than 183 days. But I calculated the time between the dates and it's 194 days? Is this common???

I wonder if the amount will get refunded once IRAS processed the whole thing?
Yes, Employer can hold the Last month salary for paying Income Tax dues, or you can work out an agreement and pay, that's entirely up to the employer to agree.

Wait for the IRAS clearance and the employer to return the excess. They MUST return the excess once IRAS gives a final amount.
Thanks, that helps. By the way, do you know if unpaid leaves count towards the 183 days? Can't find the answer on the IRAS website

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PNGMK
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Re: 15% provision tax?

Post by PNGMK » Thu, 20 Jul 2017 8:05 pm

The 183 days is residency - essentially how long you've been on your employment pass - so if you were on a pass while on unpaid leave it would count.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

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ecureilx
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Re: 15% provision tax?

Post by ecureilx » Thu, 20 Jul 2017 10:09 pm

ventolin wrote:
Thanks, that helps. By the way, do you know if unpaid leaves count towards the 183 days? Can't find the answer on the IRAS website
You aren't the first to hope so

Your residency is from date you started working till the date your employer said bye, including weekends and PH AND everything in between.

ventolin
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Re: 15% provision tax?

Post by ventolin » Thu, 20 Jul 2017 11:08 pm

Cool! Thanks guys. You are the best

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sundaymorningstaple
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Re: 15% provision tax?

Post by sundaymorningstaple » Fri, 21 Jul 2017 1:48 pm

ecureilx wrote:
ventolin wrote:
Thanks, that helps. By the way, do you know if unpaid leaves count towards the 183 days? Can't find the answer on the IRAS website
You aren't the first to hope so

Your residency is from date you started working till the date your employer said bye, including weekends and PH AND everything in between.
Actually, your residency starts the day you arrived in Singapore looking for or during the processing of paperwork to start working. So, in theory, if you came here on a 90 day visa and found a job at day 80 and managed to start before the visa ran out, your residency would start the day you first entered Singapore on that 90 day visa.
You will be regarded as a tax resident if you stay or work in Singapore:

For at least 183 days in a calendar year; or
For at least 183 days for a continuous period over two years (applies to foreign employees who have entered Singapore from 1 Jan 2007 but excludes directors of a company, public entertainers or professionals); or
Continuously for three consecutive years.
You tax residency status will be reviewed at the point of tax clearance when you cease your employment based on the tax residency rules. If your stay in Singapore is less than 183 days, you will be regarded as a non-resident.
The key words here are 'stay' 'or work'
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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ecureilx
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Re: 15% provision tax?

Post by ecureilx » Fri, 21 Jul 2017 4:07 pm

sundaymorningstaple wrote:Actually, your residency starts the day you arrived in Singapore looking for or during the processing of paperwork to start working. So, in theory, if you came here on a 90 day visa and found a job at day 80 and managed to start before the visa ran out, your residency would start the day you first entered Singapore on that 90 day visa.
That's bad :( :P :P

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Wd40
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Re: 15% provision tax?

Post by Wd40 » Sun, 23 Jul 2017 9:13 am

This was one of the first questions I asked in this forum some 8 years ago. SMS is the only person left who had helped me. Everyone else has disappeared.

Sent from my Redmi Note 4 using Tapatalk

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sundaymorningstaple
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Re: 15% provision tax?

Post by sundaymorningstaple » Sun, 23 Jul 2017 5:56 pm

Not sure if that's good or bad! :lol: :mrgreen:
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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