Thanks for the response. First of all, is it right to assume that IRAS is the Singaporean tax authorities, right?taxico wrote: ↑Sun, 26 Feb 2023 4:20 pmi have a slightly similar thing. on the years i spend enough time in SG, i declare it as royalties with IRAS.
my IP paperwork with the people that pay me also uses the same terminologies although i have to review things once or twice a month.
payment is made directly to me. no business or company is involved.
it is not considered by IRAS as a “job” which i found out during an audit.
The income is definitely not going to be derived in Singapore, it is not even going to be paid into a Singaporean bank account as it is going to be in EUR and it makes no sense to convert. And apart from the fact that I want to do this correctly, I do not think that there would be a way for anyone in Singapore to find out. Maybe in case I would need to declare my world-wide bank accounts with the balance in the tax return like we have to do here in CH. Maybe in that case the tax authorities see deposits which cannot be explained.
i didn’t read your wiki quote. IRAS has their own definition on IP (income tax act).
This is quite different in CH, where we have to declare global assets (and be taxed on them) and global income and be taxed on it in CH or be taxed on local income using marginal tax rate calculated based on global income.PNGMK wrote: ↑Thu, 02 Mar 2023 11:34 amYou only need to report income derived in Singapore on your local tax forms here.
I would simply omit any mention of foreign derived income or royalty.
You do need to double check the defintion of "derived in Singapore" - it means technically if you've worked on the product, sold it, marketed it whatever while resident in Singapore you need to calculate the income derived from that activity. In actuality....
How about if you yourself put the money in the pension fund outside SG instead of the employer? Would this be taxable from SG point of view?malcontent wrote: ↑Fri, 03 Mar 2023 9:45 pmContributions made by employer to pension/provident fund constituted outside Singapore on employment exercised in Singapore are taxable.
This was a change IRAS made around the mid-late 2000’s and I have suffered for it ever since.
1. That's why people move their wealth here.DarkOrion wrote: ↑Fri, 03 Mar 2023 10:01 pmThank you very much for this valuable input, definitely going to take it into account when I negotiate my relocation package with the HR department.
This is quite different in CH, where we have to declare global assets (and be taxed on them) and global income and be taxed on it in CH or be taxed on local income using marginal tax rate calculated based on global income.PNGMK wrote: ↑Thu, 02 Mar 2023 11:34 amYou only need to report income derived in Singapore on your local tax forms here.
I would simply omit any mention of foreign derived income or royalty.
You do need to double check the defintion of "derived in Singapore" - it means technically if you've worked on the product, sold it, marketed it whatever while resident in Singapore you need to calculate the income derived from that activity. In actuality....
How about if you yourself put the money in the pension fund outside SG instead of the employer? Would this be taxable from SG point of view?malcontent wrote: ↑Fri, 03 Mar 2023 9:45 pmContributions made by employer to pension/provident fund constituted outside Singapore on employment exercised in Singapore are taxable.
This was a change IRAS made around the mid-late 2000’s and I have suffered for it ever since.
PNGMK is right, with your own contribution from post-tax income, there’s no effect. And since you won’t get any upfront tax benefit, you have to weigh the benefit of doing this carefully.
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