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Tax/? - Income received from offshore Company

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Slyder1
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Tax/? - Income received from offshore Company

Post by Slyder1 » Tue, 23 Jan 2018 5:00 pm

My apologies in advance if I have dragged up a discussion from the past.

I am a Singapore PR, originally from the UK - I represent a UK company for my work which involves managing Distributors in the Middle East, ASEAN, Australia and the UK - The Distributors buy goods from our factory located in China and are invoiced by our UK office and payment is made to our UK bank account - The company is not registered in Singapore and the position does not need to be based in Singapore, it is just where I am located with my family. Thanks To new technology i can be located anywhere in the world.

I am paid into my Singapore bank account monthly.

2 questions:
1) Do i need to pay tax in Singapore?
2) Do i need to make CPF contributions?

Any help or useful insight much appreciated.

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Strong Eagle
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Re: Tax/? - Income received from offshore Company

Post by Strong Eagle » Tue, 23 Jan 2018 9:55 pm

Because you live in Singapore, you are tax resident in Singapore for the purposes of active (earned) income taxation, so yes, you must declare your income and pay tax in Singapore. Singapore maintains a double taxation agreement with the UK, so you should have tax payable only in Singapore and non in the UK as you are Singapore tax resident.

This link provides an overview:

https://www.guidemesingapore.com/busine ... x-treaties

The tax treaty particulars (start at the bottom of page 12 but most of it is worth a read).

https://www.iras.gov.sg/IRASHome/upload ... 02012).pdf

Because you are not working for a legal entity in Singapore, you would be considered to be self employed, and therefore, you would only be required to make Medisave contributions. However, my view is that you, as a PR, will want to make additional contributions (you get it all back anyway) because I judge that your CPF contributions are one of the elements that are considered for a REP renewal... that's just my gut feel.

https://www.cpf.gov.sg/members/schemes/ ... yed-scheme

Slyder1
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Re: Tax/? - Income received from offshore Company

Post by Slyder1 » Tue, 23 Jan 2018 10:18 pm

Many thanks Strong Eagle

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PNGMK
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Re: Tax/? - Income received from offshore Company

Post by PNGMK » Wed, 24 Jan 2018 9:18 am

You can possibly also claim a rebate for Singapore income tax for days you are away (not resident). IT's called the 'Area Rep' scheme by IRAS. Google it. As your company is not trading via nor in Singapore you are eligible IMO.

As per SE I recommend CPF contributions as well - it's a tax free secure investment regardless. You'll have to set it up with CPF to be a self payer into it but it's not too hard. I was in your exact situation a few years back but as an Australian the question of UK tax didn't come up - however I suggest you make your NHS contributions (or whatever they are called).
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!

Slyder1
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Re: Tax/? - Income received from offshore Company

Post by Slyder1 » Wed, 24 Jan 2018 11:16 am

Thanks PNGMK - great points and very helpful indeed.

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