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TAX for Area Representative

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fx8fx
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TAX for Area Representative

Postby fx8fx » Sun, 09 Jul 2006 6:51 pm

Area Representative



Who qualifies as an area representative



To qualify, you must satisfy all 4 criteria:

*
You must be employed by a non-resident employer;
*
You are based in Singapore for geographical convenience;
*
You are required to travel outside Singapore in the course of your duties; andYour remuneration is paid by your foreign employer and not charged directly or indirectly to the accounts of a permanent establishment in Singapore. A permanent establishment means a fixed place where a business is wholly or partly carried on eg. a place of management, a branch, an office, a factory etc.

Taxability of an area representative



If you qualify to be assessed as an area representative, you will be taxed on the amount of your remuneration attributable to the number of days spent in Singapore. If you are treated as a resident for Singapore income tax purposes, the higher of this amount or your remittance of employment income will be taxed. However, foreign sourced employment income received by a resident individual on or after 1.1.04 will be exempt.



If your employment in Singapore straddles 3 consecutive years of assessment, we will treat you as resident for all years even though your presence in
Singapore is less than 183 days in any calendar year.



If you are treated as a resident for Singapore income tax purposes, the higher of this amount or your remittance of employment income will be taxed.

wonder how to understand this rule ? any scenarios ?

tks

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Re: TAX for Area Representative

Postby Fantastic » Sun, 09 Jul 2006 8:45 pm

fx8fx wrote: If you are treated as a resident for Singapore income tax purposes, the higher of this amount or your remittance of employment income will be taxed.

wonder how to understand this rule ? any scenarios ?

tks


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

The amount taxable for income received on or after 1.1.2004 will only be the "amount of your remuneration attributable to the number of days spent in Singapore."

as

"foreign sourced employment income received by a resident individual on or after 1.1.04 will be exempt. "

Hence, the remittance amount is irrelevant in calculating taxable amount for income received on or after 1.1.04.
"... If you can't think because you can't chew, try a banana" LKY

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Postby fx8fx » Mon, 10 Jul 2006 1:28 pm

thank you .

i know the rule of 183 days, but it's still confused on "your remittance of employment income"

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Postby Fantastic » Mon, 10 Jul 2006 1:50 pm

fx8fx wrote:thank you .

i know the rule of 183 days, but it's still confused on "your remittance of employment income"


Getting the money (attributable and not attributable to number of days spent in Singapore) into Singapore.
Foreign sourced income of residents used to be taxable.
That's how I understand it anyway.

Try calling or writing the IRAS.
"... If you can't think because you can't chew, try a banana" LKY

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Postby fx8fx » Sat, 15 Jul 2006 12:17 am

finally i obtained the info from IRAS.

the benefit for Area Rep is you only need pay the residential tax for the time you stay in Singapore even you stay here more than 183 days .

it's a great term , i love singapore , hehe


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