Housing/Transportation Allowances

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Paud
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Housing/Transportation Allowances

Post by Paud » Fri, 17 Feb 2006 8:44 am

Is it common to have housing/transportation allowances for someone relocating from Australia to Singapore? Anyone from Australia here? :)

I might be moving to Singapore to take up a regional position and am wondering whether I should have that as part of my package. Understand the tax rate is lower and I can most probably cover the higher rent/tranportation with tax savings.

Thanks for your advice!

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Carpe Diem
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Post by Carpe Diem » Fri, 17 Feb 2006 9:07 am

Every case is different and it's up to the company and the employee to agree on the terms of the contract... Like in any work contract.

In the past it was quite common for expatriates to have such allowances, however the trend is clearly to move to "local" contracts where there are no benefits in kind.

Use your negotiation skills!

And yes the tax rate is lower. FYI if you want to save on taxes it's better to have a lower salary and some benefits in kind rather than a higher income without allowances.
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Paud
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Post by Paud » Fri, 17 Feb 2006 12:46 pm

Thanks Carpe.

My negotiation skills = non-existent.. :lol:

what benefits in kind are not taxable? from I what read in iras website, housing and transport allowances are both taxable.

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Post by Carpe Diem » Fri, 17 Feb 2006 12:54 pm

All benefits are taxable, but tax is calculated on only a % of the benefit...

As for negotiation, if you feel you are not good at that, just compute what you have today and what you will get tomorrow, and present the facts to your employer... (of course, if you feel you are going to loose!). Since you are taking a risk by moving, you should get something out of it or at least make no loss.
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