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.

[dennisov]

Hello,

There are several helpful threads in this forum, but no official sources linked (e.g. MOM). Where can the information related to people on a dependant pass working remotely for a foreign company with no activity in Singapore be found? Need to confirm this to my company. They have raised concerns about taxation and need more information. Thanks!

[dennisov]

Hello,

There are several helpful threads in this forum, but no official sources linked (e.g. MOM). Where can the information related to people on a dependant pass working remotely for a foreign company with no activity in Singapore be found? Need to confirm this to my company. They have raised concerns about taxation and need more information. Thanks!

[Myasis Dragon]

Hello,

There are several helpful threads in this forum, but no official sources linked (e.g. MOM). Where can the information related to people on a dependant pass working remotely for a foreign company with no activity in Singapore be found? Need to confirm this to my company. They have raised concerns about taxation and need more information. Thanks!

Email MoM about work pass requirements. https://service2.mom.gov.sg/efeedback/F ... dback.aspx

That's what I have done on more than 3 occasions and have always received a prompt and detailed response.

In your email, and if it's true, be sure to state:

1. That the company you are planning on working for has no legal presence in Singapore.

2. That the company does not provided any goods or services in Singapore.

3. That your employment will not entail any activities that are Singapore based (other than your remote work for the company).

You will get an email back which will tell you that you can work for the foreign company without the need for a work permit.

For your tax questions, refer to this post I made earlier: viewtopic.php?f=15&t=142681&p=864875#p851953

In essence you will pay taxes to the Singapore government via IRAS on the income you earn because you are resident in Singapore. Period. End. If you must pay income tax in your home country, that is your task to figure out. Example: I am an American. Therefore, I paid Singapore income tax and I was liable for US income tax, to the extent that my earned income exclusion didn't reduce my tax burden.

You can tell your company this.

1. The Singapore government does not want foreigners displacing locals in the job market, thus the need for a government approved employment pass if working in Singapore.

2. Remote work for a foreign company does not take a job from a local.

3. Therefore, the government doesn't care if you are working remotely so long as you are paying your taxes.

4. You pay personal income tax in Singapore because you live and work there.