Working in Singapore for overseas business

[Blkstn]

Hello,
Not sure if this has been asked but any updated info would be greatly appreciated!

If someone is on a dependent pass, but holds an online job for an office in USA, do they need LOC to work in Singapore?

Technically, no one can write LOC as the office and job is not based in Singapore?

Does anyone have any relevant information about this?

Thanks in advance.

[sundaymorningstaple]

There are threads on this that are recent. This year in fact. Check some of the "similar topics" at the bottom of your page. and/or use the search function.

[sundaymorningstaple]

Read, reread and read once more the entire following thread as it's a bit confusing because of the OP (Original Poster) between Myasis Dragon and myself we try to explain it and the tax implications as well.

viewtopic.php?t=135337

[Myasis Dragon]

Hello,
Not sure if this has been asked but any updated info would be greatly appreciated!

If someone is on a dependent pass, but holds an online job for an office in USA, do they need LOC to work in Singapore?

Technically, no one can write LOC as the office and job is not based in Singapore?

Does anyone have any relevant information about this?

Thanks in advance.

Check the multiple threads with responses by Strong Eagle. In general, no work permit or LOC is required, and the activity is legal, if the following conditions are met:

1. The company you wish to work for must have no legal presence in Singapore and must not provide services or products in Singapore.
   
   1. Example 1 - You are working for an accounting firm registered in the USA that performs work for clients based in the USA. Your working in Singapore without a work permit is OK.
   2. Example 2 - You are working for a professional consulting firm registered in the USA. You are working online from Singapore to create documents that are then forwarded to a client in Singapore. Your working in Singapore without an LOC or work permit is NOT OK.
2. You must be on a DP or LTVP, no work pass of any type. As SMS pointed out in his reference to the other thread, while Singapore regulations in this area are unclear, it is pretty clear that people on work permits are only supposed to work for the employer for whom the work permit was issued.

Next, you must consider your issues of taxation. Because you are a DP, you are legally tax resident for personal income tax purposes in Singapore. Therefore, your earnings must be reported on your Singapore income tax forms. Unless you are making a bundle, you can generally report as an unregistered sole proprietorship and the financial information you must provide is minimal.

You have a wrinkle, however. Assuming that you are an American because you are holding this job in the USA, your worldwide income is taxable by the IRS. You also get an earned income exclusion so that income taxed overseas is not taxed again. But, you are earning this money from a USA company and I believe that this money is subject to withholding and social security tax. I do not know it's status with respect to the foreign earned income exclusion, although I suspect it applies because you are tax resident overseas. You need to contact a qualified accountant to get a firm resolution on this point.