IRAS tax calc when ceasing employment is incorrect

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musical box
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IRAS tax calc when ceasing employment is incorrect

Post by musical box » Tue, 28 Jun 2022 3:35 pm

start 24 Jan 2022. Last work day 2nd July 2022.
total income 46,000 sgd. IRAS calc 6,700k tax payable but their online calc (xl sheet) computes to 700 sgd. Which is correct?
I shall not be seeking employment in Sg for rest of 2022.

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sundaymorningstaple
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Re: IRAS tax calc when ceasing employment is incorrect

Post by sundaymorningstaple » Tue, 28 Jun 2022 3:52 pm

When did you arrive in Singapore on a residency visa, e.g., LTVP, DP, EP? Based on you posts since 2020 it appears you were trying to game the system here and ended up caught at one point stranded in Dubai. When will you be leaving Singapore - I'm assuming as soon as your SVP given at the cancellation of your employment pass is up as it cannot be renewed. As it stands right now, you worked over 60 days but less than 183 days therefore you would be taxed at non-resident tax rates of a flat 15%. So taking your stated total income less personal deduction, I'd say $6700 is just about right on the money.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

musical box
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Re: IRAS tax calc when ceasing employment is incorrect

Post by musical box » Tue, 28 Jun 2022 3:58 pm

Thank for clarifying that if you work in Singapore for less than 183 days then you are taxed at flat 15%, as a non-resident.

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Re: IRAS tax calc when ceasing employment is incorrect

Post by sundaymorningstaple » Tue, 28 Jun 2022 5:13 pm

For your reference......

https://www.iras.gov.sg/taxes/individua ... -tax-rates
Resident tax rates
Income tax rates depend on an individual's tax residency status. You will be treated as a tax resident for a particular Year of Assessment (YA) if you are a:

1. Singapore Citizen or Singapore Permanent Resident who resides in Singapore except for temporary absences; or
2. Foreigner who has stayed/worked in Singapore:
a. For at least 183 days in the previous calendar year; or
b. Continuously for 3 consecutive years, even if the period of stay in Singapore may be less than 183 days in the first year and/or third year; or
3. Foreigner who has worked in Singapore for a continuous period straddling 2 calendar years and the total period of stay is at least 183 days*. This applies to employees who entered Singapore but excludes directors of a company, public entertainers, or professionals.

*including your physical presence immediately before and after your employment

If you do not meet the conditions stated above, you will be treated as a non-resident of Singapore for tax purposes
Non-resident tax rates
Taxes on employment income
Employment income of non-residents is taxed at the flat rate of 15% or the progressive resident tax rates (see table above), whichever is the higher tax amount.

Taxes on director's fee, consultation fees and all other income
The tax rate for non-resident individuals is currently at 22%. It applies to all income including rental income from properties, pension and director's fees, except employment income and certain income taxable at reduced withholding rates (please see Withholding taxes on income of non-resident individuals below).
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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