SGD 110,000 per year for a single person

[UKExpat1987]

Hi everyone,

I’ve just been proposed to relocate from London to Singapore with a salary of SGD 110,000 per year plus annual bonus and relocation package. Considering only my base salary, do you think it is enough to rent a nice flat, maybe with swimming pool and gym? What would be the net payable for a non resident with that salary? Is it a good salary to live comfortably alone in one bedroom flat?

Thanks for your help!

[PNGMK]

Tax rates are online - probably 5% at that rate. Yes you can live here ok but rent is high. Do some research online for where you want to live.

[Wong_Jnr]

You'll have about SGD8.3k per month NET
That should be more than enough to live a comfortable life.
Condo shouldn't be more than SGD2.5k p.m depending on location.
Just under SGD6k left over is a decent amount of money.

[UKExpat1987]

Tax rates are online - probably 5% at that rate. Yes you can live here ok but rent is high. Do some research online for where you want to live.

Are tax rates higher for non resident? I used one of those online calculators and the net salary was around 6k per month. Is it correct?

Thanks!


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[Wong_Jnr]

Are tax rates higher for non resident? I used one of those online calculators and the net salary was around 6k per month. Is it correct?

If you're here over 6mths you're considered tax resident and taxed at normal rates. Anything less it's 15% flat and then you can recover that back the next year when you qualify as a tax resident.
So essentially if you arrive before 1st Jul you'll be fine. It's about arrival not start date.

For SGD110k first SGD80k costs SGD3,350 and next SGD30k is at 11.5% so SGD3,450. So SGD6,800 total, not accounting for some allowances you get too. That is low at around 6%.

https://www.iras.gov.sg/irashome/Quick- ... Tax-Rates/

Looks like your calculations are based on UK tax rates!

[UKExpat1987]

I will arrive for sure after the mid of July


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[Wong_Jnr]

I will arrive for sure after the mid of July

OK that's 15% you'll need to pay on income tax for 2019.
Thing is tax doesn't need to be paid until the following year and can be paid by interest free installments. You will get that overpaid tax back in 2021 when doing your 2020 return.
A budget of SGD7.8k p.m is still fine for you.

[UKExpat1987]

So if I join after July as I said I should still get 7.8k per month? Sorry for asking confirmation I just want to be sure
The company also provides relocation of SGD13k.

Thanks for your help!


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[sundaymorningstaple]

I will arrive for sure after the mid of July

OK that's 15% you'll need to pay on income tax for 2019.
Thing is tax doesn't need to be paid until the following year and can be paid by interest free installments. You will get that overpaid tax back in 2021 when doing your 2020 return.
A budget of SGD7.8k p.m is still fine for you.

This is not entirely accurate. If you are on an Employment Pass with a duration of at least 12 months (most will be for 24 or 36 months unless it's just a short term project) IRAS will know that and in all probability will tax you at resident rates anyway, regardless of not having been here for over 183 days. This is normally how it is done for EP holders of over 12 months. However, it is always wise to plan against this working. You income is definitely sufficient for a decent lifestyle here. Base your savings around putting away the 15% non-resident tax for the year of assessment 2019 until you do your tax return. Once you receive the tax bill, if it's as I think, then transfer the difference to your normal savings. (or as mentioned you can pay it via installments).

[UKExpat1987]

I am not sure about the contract to be honest, I didn’y receive it yet but it could be a normal permanent contract if I am not wrong.

The package also includes 8% annual bonus minimum and 13k for relocation. Plus 27 days of paid leaves.


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[Wong_Jnr]

The package also includes 8% annual bonus minimum and 13k for relocation. Plus 27 days of paid leaves.

Let me guess, you're gonna work for a bank?

Is your 13k relocation paid to you as cash or it's an amount you can spend up to? Relocation expenses if paid by the company a proportion can be tax free.

You'll need to budget to get some decent private medical. Companies here only give you the bare minimum and you won't qualify for government funding.

[UKExpat1987]

Yes, it’s a finance company.

Not sure about the relocation package, I haven’t seen the contract yet.




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[UKExpat1987]

Apart from the medical insurance the rest of the package seemed reasonable to me for accepting.


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[Wong_Jnr]

Cool, any other questions just feel free to ask!

[MikeJones]

So if I join after July as I said I should still get 7.8k per month? Sorry for asking confirmation I just want to be sure
The company also provides relocation of SGD13k.

Just clarify for you, as Wong_Jnr mentioned you don't actually pay tax until the end of the tax year (i.e. no PAYE in Singapore) and then you can pay off what you owe in interest free installments over the next 12 months. So you'll be taking home your full salary amount every month, you'll just need to make sure you set aside enough to make your tax payments when they are due.

One other thing to check is what the actual monthly amount will be, many places here pay you double salary in December (can't remember the term for it) so your annual is divided by 13 not 12 to work out your monthly salary. Doesn't make much difference in the long run but is useful to know for budgeting purposes.

Mike