No. Not true. What this really means: You cannot work for a Singapore registered company without a work permit... employment pass, S-Pass, or work pass. You cannot run your own business supplying goods or services in Singapore without a company and a work permit.malcontent wrote: ↑Sun, 22 Nov 2020 8:20 pmIt’s an interesting question. I think there are multiple ways to approach this with varying sets of risks. I assume you are asking about the lowest risk approach, which is everything in black & white, completely above board.
Let me start off with three assertions which I believe to be correct —
First, a DP does not give you the right to work while you are in Singapore, no matter what the capacity or the employer. Permission to work under a DP must be requested either by the employer sponsoring the EP or the company/agency employing you.
As a legal Singapore resident, you are also resident for tax purposes. It doesn't matter where your source of income is located, nor the currency you are paid in, nor the bank into which you are paid, nor where the bank is located.Second, company presence here has no bearing on your income tax liability in Singapore. The income will almost certainly be taxable in Singapore, but that is not necessarily a bad thing since income tax rates are lower here than in the US.
The foreign earned income exclusion for 2021 is $108,700. Earned income up to this amount is excluded from tax so long as you are out of the USA for 330 days per year. You will still pay income tax on your dividends, rents, and other unearned income at a tax rate as though your income were not excluded.Third, as a US citizen, your worldwide income is subject to US income tax no matter where you live. However, between the foreign earned income exclusion, foreign housing exclusion and the foreign tax credit, you will probably owe no US taxes, and even if you do, your combined SG+US taxes won’t more than you pay today in the US.
This is not fully correct as you don't have to work for the Singapore company.Myasis Dragon wrote: ↑Mon, 23 Nov 2020 12:16 amFirst, the company must have no legal presence in Singapore, otherwise you would need a work permit to work for that legal presence in Singapore. And second, the company must not offer goods or services in Singapore, otherwise, it would be required to form a legal entity, then obtain a work permit for you.
Agree with the points Myasis made.Myasis Dragon wrote: ↑Mon, 23 Nov 2020 12:16 amThe foreign earned income exclusion for 2021 is $108,700. Earned income up to this amount is excluded from tax so long as you are out of the USA for 330 days per year. You will still pay income tax on your dividends, rents, and other unearned income at a tax rate as though your income were not excluded.
Users browsing this forum: No registered users and 0 guests