There's no trick, at least not in my case. I'm a resident in Australia. Have you seen our income tax rates? They are much higher than Singapore's rates. No matter what tax I have to pay to IRAS, I will be paying Australian resident tax rates on the salary anyway. Whether I pay 15% tax to IRAS or 0% makes very little difference in my case since the Australian rates are higher, and Australia offers you the possibility to claim back foreign tax paid when it is less than their own rates to avoid double taxation.You wouldn't be the first one to try this trick. Someone from the sub-continent forms a company, moves back home and runs it from there. They don't pay taxes in Singapore and they don't pay taxes in their home country. No government likes that.
No, he is not. He is tax resident in Malaysia and pays his income tax there. You are free to hire anyone you want to perform any function you want, from anywhere in the world. Through my Singapore company, I hired a lawyer in Hong Kong to setup my business there. It's an arms length transaction with an individual who is tax resident in Hong Kong. The withholding rule does not apply.Narcisse wrote: ↑Wed, 05 Feb 2020 1:54 pmWith my limited knowledge of the Singapore tax system (I'm not an expert like yourself), this accountant in Kuala Lumpur is breaking the law by receiving income from Singapore and not filing a declaration with IRAS and paying 15% (minimum) tax on it. I have no interest in tax evasion like this.
Thank you PNGMK, but I do not believe this would apply to me even if I wanted to do this (which I have decided against).
Yep, understood. For the sake of clarity, assume he does have an EntrePass or PR, but he still spends only a short amount of time in Singapore, so for tax purposes, I would assume he is a tax resident of the Republic of Ireland even though he holds a EP or PR for Singapore. I assume that the holding of the EP would something worked out with the Ministry of Manpower and where he claims tax residence would be separate, this would be worked out with IRAS. But perhaps I've misunderstood again.
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