TAX RESIDENCY CEASES WHN EP CANCELED?

[martincymru]

Notes:

Left Sg Dec 10, 2017, prior EP status. Unemployed since Dec 11, 2017, travelling around Asia.
Have Sg job offer to start June 1, 2018.
UK Citizen. Non – tax resident UK for past 15 years (10 years in Sg., 2007-2010, EP, all taxes paid up).

Q.
Does IRAS automatically make you non-tax resident when you return your EP/leave Sg/pay all tax due? Is there a run off period?

Reason for Q.

My Bank (viz. Common Reporting Standard) is demanding (as of letter dtd. 03 Mar 2018) for Country of tax residency when effectively I don’t think I have one. My habitual place of abode is Singapore now and has been for 10 years and likely will be in the medium term. I have no family, no assets, no income in UK both now and past 10 years. I never spent more 20 days/per calendar year in UK in past 15 years. I really don't want all the hassle of dropping back into the UK tax system unless I am obliged to. Your thoughts on (a) IRAS and (b) wider tax issues welcome.

[PNGMK]

Which country is the bank in?

[martincymru]

UK

[Strong Eagle]

If you have no legal residence anywhere, then you are not tax resident anywhere, and that makes most any government unhappy... they want you to pay _somewhere_.

Since your last tax residency was Singapore, and since you have employment in hand in Singapore, and since you may potentially be in a position to bridge Singapore residency for tax purposes, I'd report that I am Singapore tax resident. The logic is reasonable even if someone comes back to you, and, if push came to shove, you could show a Singapore tax return for the 2017 year. That you are not in country at the moment would be hard for an external government to verify, and even if it could be verified, it wouldn't change your residency claim based on the above.

[johnkcp]

Hi,

Tax residency is not dependable on work permit. It is determined by period of stay in Singapore.

As long as you had stayed in Singapore for at least 183days in a year or at least 183 days for a continuous period over two years, then you are qualified as tax resident.

You can find more details on IRAS website as follow.

https://www.iras.gov.sg/irashome/Indivi ... reigners-/

Based on your information, you are considered as tax resident as for the past ten years you had stayed in Singapore. I believe that your employer will withheld part of your salary after cessation of EP in order to do the tax clearance on your behalf. Any exceed of paid tax will be refunded to you.

Regards,
John