Tax Rates

[mattplowman]

I am looking at relocating to Singapore in the near future. I am keen to find out about tax rates - I have studied the tax sites but am having trouble figuring out what category I fall into. I am coming in from NZ to work full time in Singapore and plan to be there a number of years. Will I be a resident of non resident for tax purposes and what rate will I be taxed on (15%?)

Cheers
M

[sundaymorningstaple]

If you are here for less than 183 days in your first year calendar year here then you will be taxed at a flat rate of 15%. If you are here more than 183 days then you will be taxed at resident rates (graduated tax rates).

http://www.iras.gov.sg/ESVPortal/iit/ii ... idents.asp

http://www.iras.gov.sg/ESVPortal/iit/ii ... gapore.asp

Or to put it differently If you arrive here after July 1, you will be taxed at 15% the first calendar year.

A foreigner will be regarded as resident in Singapore if he was physically present or exercising an employment in Singapore for 183 days or more during the year preceding the year of assessment in a capacity other than that of a director of a company.

The operative word here is physically present (which may not always mean you were working. - Your passport will show your date of entry & exit here. It does not mean necessarily consecutive days hence the reference to exercising an employment for 183 days (you may only work here but not necessarily reside here.)

Provided which you continue to work here all subsequent years you will be taxed at resident rates complete with resident tax deductions (few that they are) with the exception of CPF which you are not required to contribute. On the off chance that you employer does contribute (some do), because it is not required by law, it will be non-deductible.

Hope this helps to answer your questions.

sms

[mattplowman]

thanks for the info, thats what I had gathered but wanted to make sure. If I miss the residents cut off this year will I get it in 07 if I am there for 183 days or more (the reason why I ask is that the website talks about an example over a 3 year period?)

On another note, when is the rugby season in Singapore - I am a keen player so will be looking to join a club

Cheers
M

[sundaymorningstaple]

thanks for the info, thats what I had gathered but wanted to make sure. If I miss the residents cut off this year will I get it in 07 if I am there for 183 days or more (the reason why I ask is that the website talks about an example over a 3 year period?)

On another note, when is the rugby season in Singapore - I am a keen player so will be looking to join a club

Cheers
M

To answer your first question - Yes.

To answer your second I'll have to pass off to tiki I think as I am a yank so haven't a clue. Sorry. I do know there are clubs here and it is popular. I do know the Singapore 7's just finished about 2 weeks ago.

tiki - you out there? help this guy.

[mattplowman]

thanks sundaymorningstaple you have been a great help

[Highland Chicken]

My other half starts his new job in Singapore in June and has been told by his new company that he will be taxed a flat rate of 9% once a year in arrears.

Does this sound right?

HC

[sundaymorningstaple]

Highland Chicken,

What I would suggest is that you click the links that I looked up and copied and pasted here for the convenience of the posters so that they didn't have to spend the time searching. You could spend the time reading however.

It seems to me that the site says 15% for the first year if less than 183 days and residents rates for all else. Resident rates are graduated which you would have seen had you read the links provided. The only flat rate is the 15% rate. Without knowing what their income is who knows? (but it won't be a flat rate!)

Sorry if I come across as harsh but I've provided all the answers direct from Inland Revenue - all you have to do is read.