The EP will be renewed baring any other factors.
The EP will be renewed baring any other factors.
"Generally, overseas income received in Singapore by you is not taxable and need not be declared in your Income Tax Return. This includes overseas income paid into a Singapore bank account."whitesneakers wrote: ↑Mon, 01 Mar 2021 1:08 pmHi, what about if it’s the opposite? If you’re in DP and accepting a work overseas which doesn’t have a presence in sg? How does the tax would work?
Almost but not quite. I fear whitesneakers will misread that without further explanation as there is more detail elsewhere on IRAS's with regard to this.PNGMK wrote: ↑Mon, 01 Mar 2021 1:54 pm"Generally, overseas income received in Singapore by you is not taxable and need not be declared in your Income Tax Return. This includes overseas income paid into a Singapore bank account."whitesneakers wrote: ↑Mon, 01 Mar 2021 1:08 pmHi, what about if it’s the opposite? If you’re in DP and accepting a work overseas which doesn’t have a presence in sg? How does the tax would work?
https://www.iras.gov.sg/IRASHome/Indivi ... Singapore/
What is Taxable and What is Not
Besides salaries and bonuses, employment benefits such as housing and stock options will also form part of your taxable employment income .
This means exactly what it says, derived OUTSIDE Singapore is not reportable/taxable. IF she is working remotely from within Singapore then her income is technically being derived from within Singapore (this is exactly what SE, MD & I are always on about. She doesn't need a working pass to work for an offshore company while here as long as there isn't a presence, etc, etc. but salaries from working remotely are taxable as the work is being preformed here in SG.Overseas income derived outside Singapore, Singapore dividends and bank interest are tax exempt in Singapore.
FYI to record the income you file on iras.gov.sg and record it as "other" income when filing. Also note that if you are not present in Singapore for part of the year you can claim a rebate on income tax in some cases where your employer is not based here in Singapore.whitesneakers wrote: ↑Tue, 02 Mar 2021 8:11 amThank you so much PGMK and @sundaymorningstaple. Appreciate the responses
You need to pay tax ("All individuals earning, deriving or receiving income in Singapore need to pay income tax every year, unless specifically exempted under the Income Tax Act or by an Administrative Concession.) ".alphahuskie wrote: ↑Wed, 03 Mar 2021 12:01 pmWould anyone know in the scenario of you being a SPR, but due to circumstances now plan to remotely for bulk of the year e.g. 11 months out of a year, for a Singapore-based company. So essentially the work is still incidental to Singapore but most of the time spent outside - would one still be considered a tax resident?
Thank you Masa.PNGMK wrote: ↑Wed, 03 Mar 2021 5:01 pmYou need to pay tax ("All individuals earning, deriving or receiving income in Singapore need to pay income tax every year, unless specifically exempted under the Income Tax Act or by an Administrative Concession.) ".alphahuskie wrote: ↑Wed, 03 Mar 2021 12:01 pmWould anyone know in the scenario of you being a SPR, but due to circumstances now plan to remotely for bulk of the year e.g. 11 months out of a year, for a Singapore-based company. So essentially the work is still incidental to Singapore but most of the time spent outside - would one still be considered a tax resident?
Furthermore - "If you are issued with a work pass that is valid for at least one year, you will also be treated as a tax resident upfront." but as a SPR I would say "You will be regarded as a tax resident if you stay or work in Singapore for at least 183 days in a calendar year; or continuously for three consecutive years; or work in Singapore for a period straddling two calendar years and your total period of stay* is at least 183 days."
You may not be a tax resident and therefore subject to the flat 15% rule - this may be disadvantageous to you because as a non-resident:
You will only be taxed on all income earned in Singapore.
You will not be entitled to tax reliefs.
Your employment income will be taxed at a flat rate of 15% or the progressive resident rates, whichever results in a higher tax amount.
Personally I would "assume" you are tax residency and not complete form M. If challenged on this point out that you maintain a home, bank accounts etc and consider Singapore your residence. Also I suspect you meet the 3 year rule at present.
Don't forget double taxation, you may be liable for income tax where you are staying for the 11 months. If that is the case I would move to have the Singapore company contract you via a local payroll company so as to eliminate your Singapore tax liability completely (as the income is now derived locally).
This is when the section:
becomes applicable.Overseas income derived outside Singapore, Singapore dividends and bank interest are tax exempt in Singapore.
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