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Can I work remotely for a US company under a PEP?

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liannee
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Can I work remotely for a US company under a PEP?

Post by liannee » Thu, 02 Jul 2020 9:27 am

I'm currently considering moving to Singapore in 2021 under a PEP visa. I meet all the salary requirements for the visa, but I'm very curious if there are any restrictions about what kind of companies I can work for under a PEP visa. In order to maintain a salary that meets the requirement, I would need to work remotely for a US based company that has no business ties to Singapore and pays me in US $ to my American bank account.

Would this be allowed under the PEP visa? Would the US company I work for need to do any kind legal work/taxes/etc. for me to be working in Singapore?

Thank you in advance for reading this and helping me out!

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PNGMK
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Re: Can I work remotely for a US company under a PEP?

Post by PNGMK » Thu, 02 Jul 2020 10:19 am

Myasis can probably answer this best.
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Re: Can I work remotely for a US company under a PEP?

Post by singaporeflyer » Fri, 03 Jul 2020 12:41 am

liannee wrote:
Thu, 02 Jul 2020 9:27 am
I'm currently considering moving to Singapore in 2021 under a PEP visa. I meet all the salary requirements for the visa, but I'm very curious if there are any restrictions about what kind of companies I can work for under a PEP visa. In order to maintain a salary that meets the requirement, I would need to work remotely for a US based company that has no business ties to Singapore and pays me in US $ to my American bank account.

Would this be allowed under the PEP visa? Would the US company I work for need to do any kind legal work/taxes/etc. for me to be working in Singapore?

Thank you in advance for reading this and helping me out!
You are not allowed to Freelance on a PEP.

So, your US company has to have a presence in Singapore and have you as an employee. You should earn your salary in Singapore and also pay tax in Singapore.

What is the reason that you want to move to SG on a PEP, but still work for a US company that has no presence in SG?

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Re: Can I work remotely for a US company under a PEP?

Post by Myasis Dragon » Fri, 03 Jul 2020 11:19 am

liannee wrote:
Thu, 02 Jul 2020 9:27 am
I'm currently considering moving to Singapore in 2021 under a PEP visa. I meet all the salary requirements for the visa, but I'm very curious if there are any restrictions about what kind of companies I can work for under a PEP visa. In order to maintain a salary that meets the requirement, I would need to work remotely for a US based company that has no business ties to Singapore and pays me in US $ to my American bank account.

Would this be allowed under the PEP visa? Would the US company I work for need to do any kind legal work/taxes/etc. for me to be working in Singapore?

Thank you in advance for reading this and helping me out!
singaporeflyer has correctly summed up the situation for you.

Your PEP expressly forbids freelancing, regardless of where your freelancing income is being sourced. And in order to work for a company with no presence in Singapore, you would have to be a freelancer, or more accurately, a sole proprietorship for tax reporting purposes... but...

PEP regulations specifically disallow an individual from starting a sole proprietorship, or a company or from being a shareholder in a company in which they work. PEP is a strange bird, but it's pretty clear that the gahmen didn't want people back dooring themselves into Singapore by getting a PEP and setting up their own company.

My interpretation of the statutes is that you income for PEP qualification must be earned from a Singapore company. From posts that other PEP holders have made on this board, there is nothing to prevent you from working for two or more Singapore employers while on your PEP.

If you want to work for the US company in Singapore, they will need to create a legal presence in Singapore, most likely a wholly owned subsidiary in the form of a private limited corporation. You can be the director since you don't own it.

As far as the bank you are paid into, the currency you receive, or who does the paying, none of that makes any difference for personal income tax purposes. Almost universally, you a taxed in your place of residence where you are doing the work.

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Re: Can I work remotely for a US company under a PEP?

Post by PNGMK » Fri, 03 Jul 2020 11:41 am

OP I think what you're trying to do is reduce income tax on a US salaried position that you already hold? In short this is quite difficult. It would be much easier if you could contract from an overseas entity to the US company. You could for example contract from a company registered in the Seychelles, pay no corporate tax there and then pay yourself in a country with no income tax such as Dubai or HK.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

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Re: Can I work remotely for a US company under a PEP?

Post by tiktok » Sat, 04 Jul 2020 8:07 am

Interesting scheme, but as a US citizen wouldn't be still have to pay US tax on income from the foreign company?

Minor correction, there is tax in Hong Kong, although not for overseas income.
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Re: Can I work remotely for a US company under a PEP?

Post by PNGMK » Sat, 04 Jul 2020 8:45 am

Yes but it could be deferred or split across different people to get into a lower tax bracket. Essentially what family offices do with trusts.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

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Re: Can I work remotely for a US company under a PEP?

Post by veezzee » Sat, 18 Jul 2020 12:06 pm

If your employer is agreeable you could look for a 3rd party payroll/admin provider like Globalization Partners. One of my previous employer as a start up used them to hire me as they didn’t want to open a legal entity in SG as I was the first employee.
These services handle everything and employ you in SG on behalf of your existing employer and pay you here in SGD. They can do this for any country across the globe pretty much and in return they’ll bill your company every month. It’s very easy and flexible. Worth a look!
Recently moved into Singapore. So kinda perfect stranger to the city! Looking for a move to move in between Aug 25th - Sep 1st.

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Re: Can I work remotely for a US company under a PEP?

Post by PNGMK » Mon, 20 Jul 2020 8:40 am

veezzee wrote:
Sat, 18 Jul 2020 12:06 pm
If your employer is agreeable you could look for a 3rd party payroll/admin provider like Globalization Partners. One of my previous employer as a start up used them to hire me as they didn’t want to open a legal entity in SG as I was the first employee.
These services handle everything and employ you in SG on behalf of your existing employer and pay you here in SGD. They can do this for any country across the globe pretty much and in return they’ll bill your company every month. It’s very easy and flexible. Worth a look!
Yes I've seen this done but usually it's with people who have a legal right of residence in Singapore that a foreign company wants to hire in Singapore. I am not sure they can actually provide a work permit as OP needs?
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

veezzee
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Re: Can I work remotely for a US company under a PEP?

Post by veezzee » Mon, 20 Jul 2020 9:14 am

That is the whole idea of obtaining a PEP. For which, I do not think one needs to be already residing in SG or have a job in SG to get it approved, as long as the earning criteria (SGD 18K/month) is met. A PEP gives you a legal right of residence before one can move into SG and then find a job or vice versa. You get 6 months to find one to be employed locally before the deadline sets in.
Recently moved into Singapore. So kinda perfect stranger to the city! Looking for a move to move in between Aug 25th - Sep 1st.

veezzee
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Re: Can I work remotely for a US company under a PEP?

Post by veezzee » Mon, 20 Jul 2020 9:24 am

liannee wrote:
Thu, 02 Jul 2020 9:27 am
I'm currently considering moving to Singapore in 2021 under a PEP visa. I meet all the salary requirements for the visa, but I'm very curious if there are any restrictions about what kind of companies I can work for under a PEP visa. In order to maintain a salary that meets the requirement, I would need to work remotely for a US-based company that has no business ties to Singapore and pays me in US $ to my American bank account.

Would this be allowed under the PEP visa? Would the US company I work for need to do any kind legal work/taxes/etc. for me to be working in Singapore?

Thank you in advance for reading this and helping me out!
Lianee Question: "Would this be allowed under the PEP visa? Would the US company I work for need to do any kind legal work/taxes/etc. for me to be working in Singapore?"
Answer: No. They don't have to as long as you find a HR/payroll service provider who will handle everything on their behalf and all your Employer in the US would need to do is cut a monthly/yearly cheque on their name based on the agreement.
If not, then yes, they have to legally have an entity and do the local company registration/tax/payroll administration through a local Bank Account by themselves. They simply can't hire someone in US and pay in USD through/into a US bank account and expect that to obtain/support a SG work visa (PEP) that comes with a residency status along with it.
Recently moved into Singapore. So kinda perfect stranger to the city! Looking for a move to move in between Aug 25th - Sep 1st.

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