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Work from Singapore for US company - kind of work permit?

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audiojunky
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Work from Singapore for US company - kind of work permit?

Postby audiojunky » Mon, 22 Jan 2007 11:22 pm

Hi - my wife recently got a job in Singapore so we're moving there. I have a job in the US but my boss said that I can work remotely from Singapore and will continue to get paid in the US. The company I work from has an office in Singapore but I can essentially work from home.

Given this situation, does anyone have any suggestions on what kind of a work permit I would need since I will be essentially living in the Singapore?

Also, do I need to pay taxes both in Singapore & the US?

Thanks!!

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Strong Eagle
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Postby Strong Eagle » Mon, 22 Jan 2007 11:31 pm

You will need an employment pass, probably obtained through the Singapore office.

The US is one of a handful of countries that double taxes you on income. You get a US $82,500 exclusion on US income. If you earn more than that you will pay taxes to both Singapore and the US on the overage, and the US gov't taxes you at the $82,500 rate and up.

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Postby audiojunky » Tue, 30 Jan 2007 9:52 am

Hi Strong Eagle - thanks for your reply. When you say there is double taxation, do you mean I'll need to pay both US & Singapore taxes?

So if I say make $100K USD, I'll need to pay US taxes on the entire $100K USD and Singapore taxes on $17500 (100-82.5) USD?

Thanks!!

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Postby sundaymorningstaple » Tue, 30 Jan 2007 9:59 am

audiojunky wrote:Hi Strong Eagle - thanks for your reply. When you say there is double taxation, do you mean I'll need to pay both US & Singapore taxes?

So if I say make $100K USD, I'll need to pay US taxes on the entire $100K USD and Singapore taxes on $17500 (100-82.5) USD?

Thanks!!


audiojunky,

Yes, there is double taxation.

You have got it backwards. You will pay US taxes at the 82,500 tax rate on the excess over 82.5K (17.5K). In Singapore you will pay taxes on the entire 100K. See here for the local tax rates and requirements:

Inland Revenue Authority of Singapore

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Re: Work from Singapore for US company - kind of work permit

Postby Strong Eagle » Tue, 30 Jan 2007 6:28 pm

audiojunky wrote:Hi - my wife recently got a job in Singapore so we're moving there. I have a job in the US but my boss said that I can work remotely from Singapore and will continue to get paid in the US. The company I work from has an office in Singapore but I can essentially work from home.

Given this situation, does anyone have any suggestions on what kind of a work permit I would need since I will be essentially living in the Singapore?

Also, do I need to pay taxes both in Singapore & the US?

Thanks!!


What do you mean "will continue to get paid in the US"? Do you mean that your check will be issued in the US and deposited into a US account? Or issued in the US but deposited to your account here?

If your company has an office in Singapore will you be working for them? Or will you officially be working for the company in the US?

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Postby Makan24-7 » Wed, 31 Jan 2007 7:35 am

If yr pay is deposited into a US account and still on your US HR records, then technically you are still a US employee and would then be considered a business visitor to Singapore. In that case, you only pay US taxes (federal and state). The drawback to this is that you'd have to leave Singapore every so often (I'm not sure exactly how long) and come back in again but I think Singapore immigration might start to ask questions after a while and it could get awkward.

If you get an employment pass in Singapore, then you are subject to double taxation. Double taxation may not be such a bad thing depending on your situation because Singapore tax rates are way lower. So if you don't take much deductions or declare losses on yr current US tax returns, even double taxation can be a better deal.

Just a question - I think the US has treaties with several countries to avoid double taxation - China is one of them, can someone verify this statement? Unfortunately, Singapore definitely isn't one of those countries so US citizens and green card holders are subject to double taxation.


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