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3 year administrative concession IRAS

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malcontent
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3 year administrative concession IRAS

Post by malcontent » Mon, 17 Jun 2024 7:13 pm

I am planning to make my official resignation on Dec 31 in order to retain my variable bonus eligibility. However, that bonus will be paid in March of 2025 and I would prefer to pay resident tax rates on that bonus.

From what I have read about the 3 year administrative concession from the IRAS, I need to be resident at least 1 day of the year in 2025 in order to retain tax residency for the full year.

Does that mean my EP also needs to be cancelled no earlier than Jan 2nd, or I can just be physically present in Singapore at least one day in 2025?
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Re: 3 year administrative concession IRAS

Post by Wd40 » Tue, 18 Jun 2024 8:54 am

malcontent wrote:
Mon, 17 Jun 2024 7:13 pm
I am planning to make my official resignation on Dec 31 in order to retain my variable bonus eligibility. However, that bonus will be paid in March of 2025 and I would prefer to pay resident tax rates on that bonus.

From what I have read about the 3 year administrative concession from the IRAS, I need to be resident at least 1 day of the year in 2025 in order to retain tax residency for the full year.

Does that mean my EP also needs to be cancelled no earlier than Jan 2nd, or I can just be physically present in Singapore at least one day in 2025?
Wow! Are you leaving SG for good?

When you officially put down your papers on 31st December, wont you have a notice period/garden leave or something?

But assuming your last working day is on 31st Dec, you still get 30/60 days social visit pass and you can stay here well into 2025 and those days are counted for tax residency.

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Re: 3 year administrative concession IRAS

Post by malcontent » Wed, 19 Jun 2024 6:30 pm

I plan to submit my resignation letter now, with Dec 31 as my last day. I also include a clause: unless I should find alternate employment prior.

We are actually in California this week looking at homes.

Leaving for good? Hard to say, but there are several practical and financial reasons to move now while our kids are in college. Our daughter will be attending a state school this fall, and our son will follow 2 years later. Being in-state currently saves us USD 35k per child. That is compelling enough, but saving SAS tuition fees for two years on top of that… hard to pass up.
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Re: 3 year administrative concession IRAS

Post by PNGMK » Wed, 26 Jun 2024 11:54 am

I would be more worried about your employer trying to claw back bonuses. As I know you personally I know this is not your style, but I would not resign until the bonus is in the bank (which would be early Jan?) and I simply would take leave or not show up or be busy travelling in Ca in the meantime. That should solve the residency issue.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
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Re: 3 year administrative concession IRAS

Post by malcontent » Thu, 27 Jun 2024 1:06 pm

PNGMK wrote:
Wed, 26 Jun 2024 11:54 am
I would be more worried about your employer trying to claw back bonuses. As I know you personally I know this is not your style, but I would not resign until the bonus is in the bank (which would be early Jan?) and I simply would take leave or not show up or be busy travelling in Ca in the meantime. That should solve the residency issue.
Bonuses don’t come until mid-March, but I have no concerns — I know dozens of people who left this way and still got their bonus, it’s tried and true… and my employer goes by the books… to a fault.
It is impossible for a man to learn what he thinks he already knows - Epictetus

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Re: 3 year administrative concession IRAS

Post by PNGMK » Sat, 29 Jun 2024 7:50 am

malcontent wrote:
Thu, 27 Jun 2024 1:06 pm
PNGMK wrote:
Wed, 26 Jun 2024 11:54 am
I would be more worried about your employer trying to claw back bonuses. As I know you personally I know this is not your style, but I would not resign until the bonus is in the bank (which would be early Jan?) and I simply would take leave or not show up or be busy travelling in Ca in the meantime. That should solve the residency issue.
Bonuses don’t come until mid-March, but I have no concerns — I know dozens of people who left this way and still got their bonus, it’s tried and true… and my employer goes by the books… to a fault.
Then it's more of a tax residency issue; your EP really is your tax residency but if you're resigning early in the tax year then that is a problem as you'll be taxed on the non resident basis in Singapore (< 183 days etc). You need to resign in JULY to avoid this issue. How much leave do you have? Can you work remotely? Also don't be too worried about doubling up on jobs. IF you find a job stateside I would OE (over-employ) and do both if you can work remote in one of them until July. Double pay cheques baby!
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

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Re: 3 year administrative concession IRAS

Post by MikeJones » Sat, 29 Jun 2024 10:13 am

Take a look at this: https://www.iras.gov.sg/taxes/individua ... -residency
and the option 3b description, looks like you need to be employed and present in Singapore for at least a day in 2025 for this to count. Not really sure if they count holidays outside Singapore as not resident for the 183 days calculation? So you may need a few more days/weeks to cover that.

Edit: actually that last point is covered further down the page, looks like 1 day in Singapore in 2025 would do it. Probably best to call IRAS to triple check :)

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Re: 3 year administrative concession IRAS

Post by malcontent » Sat, 29 Jun 2024 11:42 am

It appears that I need my last day to be Jan 1 instead of Dec 31. That one day might make a lot of difference in taxes.
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Re: 3 year administrative concession IRAS

Post by Wd40 » Sat, 29 Jun 2024 11:05 pm

PNGMK wrote:
Sat, 29 Jun 2024 7:50 am
malcontent wrote:
Thu, 27 Jun 2024 1:06 pm
PNGMK wrote:
Wed, 26 Jun 2024 11:54 am
I would be more worried about your employer trying to claw back bonuses. As I know you personally I know this is not your style, but I would not resign until the bonus is in the bank (which would be early Jan?) and I simply would take leave or not show up or be busy travelling in Ca in the meantime. That should solve the residency issue.
Bonuses don’t come until mid-March, but I have no concerns — I know dozens of people who left this way and still got their bonus, it’s tried and true… and my employer goes by the books… to a fault.
Then it's more of a tax residency issue; your EP really is your tax residency but if you're resigning early in the tax year then that is a problem as you'll be taxed on the non resident basis in Singapore (< 183 days etc). You need to resign in JULY to avoid this issue. How much leave do you have? Can you work remotely? Also don't be too worried about doubling up on jobs. IF you find a job stateside I would OE (over-employ) and do both if you can work remote in one of them until July. Double pay cheques baby!
When I am done with working I am done, you can offer me a million dollars for working another year, but I won't take it. The money you cannot spend, in your lifetime is simply waste of your time. Our time is limited on this planet.

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Re: 3 year administrative concession IRAS

Post by sundaymorningstaple » Sun, 30 Jun 2024 10:54 pm

PNGMK wrote:
Sat, 29 Jun 2024 7:50 am
malcontent wrote:
Thu, 27 Jun 2024 1:06 pm


Bonuses don’t come until mid-March, but I have no concerns — I know dozens of people who left this way and still got their bonus, it’s tried and true… and my employer goes by the books… to a fault.
Then it's more of a tax residency issue; your EP really is your tax residency but if you're resigning early in the tax year then that is a problem as you'll be taxed on the non resident basis in Singapore (< 183 days etc). You need to resign in JULY to avoid this issue. How much leave do you have? Can you work remotely? Also don't be too worried about doubling up on jobs. IF you find a job stateside I would OE (over-employ) and do both if you can work remote in one of them until July. Double pay cheques baby!
Not true.

The first and last year of employment doesn't have to be a full year as long as it isn't just a two year or year and a half position. First year is carried over thru 12 months using what ever months of the following year to authenticate it. Same with the last day of work regardless of what day it is 1 of Jan is okay as is the 25 of June as long as there ha been three years of consecutive employment, e.g. 2022 to 2024 (three consecutive years). Not to be confused with 36 consecutive months.
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Re: 3 year administrative concession IRAS

Post by Wd40 » Wed, 03 Jul 2024 3:53 pm

sundaymorningstaple wrote:
Sun, 30 Jun 2024 10:54 pm
PNGMK wrote:
Sat, 29 Jun 2024 7:50 am
malcontent wrote:
Thu, 27 Jun 2024 1:06 pm


Bonuses don’t come until mid-March, but I have no concerns — I know dozens of people who left this way and still got their bonus, it’s tried and true… and my employer goes by the books… to a fault.
Then it's more of a tax residency issue; your EP really is your tax residency but if you're resigning early in the tax year then that is a problem as you'll be taxed on the non resident basis in Singapore (< 183 days etc). You need to resign in JULY to avoid this issue. How much leave do you have? Can you work remotely? Also don't be too worried about doubling up on jobs. IF you find a job stateside I would OE (over-employ) and do both if you can work remote in one of them until July. Double pay cheques baby!
Not true.

The first and last year of employment doesn't have to be a full year as long as it isn't just a two year or year and a half position. First year is carried over thru 12 months using what ever months of the following year to authenticate it. Same with the last day of work regardless of what day it is 1 of Jan is okay as is the 25 of June as long as there ha been three years of consecutive employment, e.g. 2022 to 2024 (three consecutive years). Not to be confused with 36 consecutive months.
I am also, most likely going to be in this situation next year. After 15 years here, I plan to call it quits and move back to Bangalore.

I am planning to resign around end of Feb 2025 and give 1 month notice and End of Mar 2025 will be my last day, I will mostly likely lose my bonus, but who cares.

I realized when we decided to retire early and leave so much of future earnings on the table, then what is a few 1000s of dollars here or there. I have achieved what I wanted to achieve. In fact I just treat my earnings starting from Jul this year until Mar next year as a bonus.

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Re: 3 year administrative concession IRAS

Post by malcontent » Fri, 05 Jul 2024 12:57 am

Wd40 wrote:
Wed, 03 Jul 2024 3:53 pm

I am also, most likely going to be in this situation next year. After 15 years here, I plan to call it quits and move back to Bangalore.

I am planning to resign around end of Feb 2025 and give 1 month notice and End of Mar 2025 will be my last day, I will mostly likely lose my bonus, but who cares.

I realized when we decided to retire early and leave so much of future earnings on the table, then what is a few 1000s of dollars here or there. I have achieved what I wanted to achieve. In fact I just treat my earnings starting from Jul this year until Mar next year as a bonus.
The hardest thing with retiring is not financial part. You’ve probably already seen this episode from Rob Berger, but it’s almost worth a second listen:



Everyone is different though, my dad retired early and didn’t have any of these struggles, and 3 decades later he still tells me he has no regrets.
It is impossible for a man to learn what he thinks he already knows - Epictetus

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Re: 3 year administrative concession IRAS

Post by NYY1 » Fri, 05 Jul 2024 6:30 am

Wd40 wrote:
Wed, 03 Jul 2024 3:53 pm
I am also, most likely going to be in this situation next year. After 15 years here, I plan to call it quits and move back to Bangalore.

I am planning to resign around end of Feb 2025 and give 1 month notice and End of Mar 2025 will be my last day, I will mostly likely lose my bonus, but who cares.

I realized when we decided to retire early and leave so much of future earnings on the table, then what is a few 1000s of dollars here or there. I have achieved what I wanted to achieve. In fact I just treat my earnings starting from Jul this year until Mar next year as a bonus.
Congrats again, I guess!

You could also send your wife/kid back at the end of her Spring term here / before school starts in India (not sure if it lines up exactly or if there is a bit of a gap). Then resign once your bonus is paid and use the month to clean up loose ends here.

Of course, like you say, you may just not care (and per above, we only have so much time on this planet). When we leave voluntarily, we usually leave something on the table. Still, we do so because the next opportunity is better or we just want to do something else. If you want to leave as a family, that makes sense too.

Anyways, best of luck and regards.

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Re: 3 year administrative concession IRAS

Post by PNGMK » Mon, 15 Jul 2024 11:34 am

malcontent wrote:
Fri, 05 Jul 2024 12:57 am
Wd40 wrote:
Wed, 03 Jul 2024 3:53 pm

I am also, most likely going to be in this situation next year. After 15 years here, I plan to call it quits and move back to Bangalore.

I am planning to resign around end of Feb 2025 and give 1 month notice and End of Mar 2025 will be my last day, I will mostly likely lose my bonus, but who cares.

I realized when we decided to retire early and leave so much of future earnings on the table, then what is a few 1000s of dollars here or there. I have achieved what I wanted to achieve. In fact I just treat my earnings starting from Jul this year until Mar next year as a bonus.
The hardest thing with retiring is not financial part. You’ve probably already seen this episode from Rob Berger, but it’s almost worth a second listen:



Everyone is different though, my dad retired early and didn’t have any of these struggles, and 3 decades later he still tells me he has no regrets.
Interesting video. Thanks Malcontent.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

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Re: 3 year administrative concession IRAS

Post by Wd40 » Fri, 19 Jul 2024 9:15 pm

NYY1 wrote:
Fri, 05 Jul 2024 6:30 am
Wd40 wrote:
Wed, 03 Jul 2024 3:53 pm
I am also, most likely going to be in this situation next year. After 15 years here, I plan to call it quits and move back to Bangalore.

I am planning to resign around end of Feb 2025 and give 1 month notice and End of Mar 2025 will be my last day, I will mostly likely lose my bonus, but who cares.

I realized when we decided to retire early and leave so much of future earnings on the table, then what is a few 1000s of dollars here or there. I have achieved what I wanted to achieve. In fact I just treat my earnings starting from Jul this year until Mar next year as a bonus.
Congrats again, I guess!

You could also send your wife/kid back at the end of her Spring term here / before school starts in India (not sure if it lines up exactly or if there is a bit of a gap). Then resign once your bonus is paid and use the month to clean up loose ends here.

Of course, like you say, you may just not care (and per above, we only have so much time on this planet). When we leave voluntarily, we usually leave something on the table. Still, we do so because the next opportunity is better or we just want to do something else. If you want to leave as a family, that makes sense too.

Anyways, best of luck and regards.
Thanks! We would like to leave as a family, mainly because although my parents are in Bangalore, we plan to enroll our daughter in a school nearby and then rent a house. All this takes effort and my wife and daughter can't do it on their own.

Also my daughter's school will be starting in June I think, there are 2 months of summer vacation in India Apr and May where can setup everything.

So me moving out of Singapore is fixed. However is a small chance my employer allows me to work remotely for sometime either maybe through Indian subcontractor(TCS, Cognizant) although I am permanent employee with the bank here. So it will involve technically me resigning and joining the subcontractor.

It is not something I am betting on, but I don't mind taking it if I am offered and if I can WFH.

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