Help! TAX problem....

[Prenty]

Hi all, I am confused with the taxation system in SG. I will be working there in May, and my job requires me to travel a lot. I was told that if I can't stay physically in SG for long enough, my tax bar will raise from a small variable percentage to a flat of 15%.

so... assume I'm making 100,000 a year, does it mean that if I stay more than 183 days in SG, I'll only have to pay a few thousand; but if I stay like, 100 days in, I'll have to pay 15,000 big bucks?

and... does the 183 days limit mean "physically present", or it just counts the number of "working overseas" days?

[Guest]

Hi,

Are you still faced with problems with the tax system in Singapore?? My firm provides reasonable rates for tax planning issues. If you need help with your tax computation, please let me know. My firm should be able to help you.


Regards;
S A

[sundaymorningstaple]

Prenty,

Hope this helps as guest couldn't even be bothered to register so you could contact him.

1. Residence Status

The amount of tax you have to pay depends on:
• whether you are regarded as a tax resident or non-resident in Singapore; and
• how much income you earn.

More than 60 days but less than 183 days - Non-Resident status (this is calendar days not working days)

Employment income is taxed at 15% or resident rates, whichever gives rise to higher tax.

183 days or more - Resident status

All income is taxed from 0% to 22% for the Year of Assessment.

2. Resident Individual

You will be regarded as a tax resident if

* You have been in Singapore for at least 183 days in a calendar year; (this is calendar days not working days)
* You have been physically present or working in Singapore for 3 consecutive years even though the number of days you are in Singapore is less than 183 days in the first and third year. See example below.

Year Period # of Days
1 1.11.2002 to 31.12.2002 61
2 1.1.2003 to 31.12.2003 365
3 1.1.2004 to 28.2.2004 59

Go here for more information: http://www.iras.gov.sg/ESVPortal/iit/ii ... gapore.asp