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Salary, Taxes, Benefits; the numbers are giving me a headach

Discuss about getting a well paid job or career advancement. Ask about salaries, expat packages, CPF & taxes for expatriate.

LongHorn
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Salary, Taxes, Benefits; the numbers are giving me a headach

Postby LongHorn » Sat, 18 Aug 2007 8:19 pm

I've got a job offer from a local Singaporean company. Will be moving from Texas USA to Singapore. The salary is fair according to my field and my expertise. The concern that I have are around the tax liabilities vs. the benefits and how they are paid to me. The offer per annual in SGD is:

Salary = 180,000
Transport = 20,000
Housing = 50,000
Home Leave = 5,000
Healthcare Insurance = SGD 20,000
(company not offer this so I will need to get and pay on my own)

There will not be any tax equalization offered. I'm extremely concerned about being on the short end with regards to the tax situation vs. how the benefits are paid to me by the company.

This company is small and not offering much consulative support on this topic and I need to make a decision very soon so I'm reaching out to this forum board for assistance. I would much appreciate your suggestions, advice, comments, tips. Thanks. :shock:

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Superglide
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Postby Superglide » Mon, 20 Aug 2007 12:50 pm

Income tax in Singapore is fairly low, about 10%.

But be aware that you will also be taxed back in USA for your Singapore earned income...

steffi
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Postby steffi » Tue, 02 Oct 2007 1:36 pm

Yes but you can deduct the first 82k of it. but the rest is taxed in the same bracket as it would be if you were in the US. That is after 2006 it's no longer considered to be your first taxable dollar.

I have a similar offer to be honest from a very prominent firm there but I also am concerned about my tax obligation.

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sundaymorningstaple
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Postby sundaymorningstaple » Tue, 02 Oct 2007 2:40 pm

steffi,

The following links you have, I am sure, already been to, but on the off chance that you haven't, I've posted them here. Each of us has a different scenario so it would be hard to give you concrete advice as we do not know anything about your current set up from a tax standpoint. There is a lot more than just knowing what is being offered. If the Amount is sufficient, it might warrant a visit to a financial professional for some tax planning prior to jumping off the deep end as it were.

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

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

http://www.irs.gov/businesses/small/int ... 28,00.html

Additionally download Publication 54, Tax guide for US Citizens and Resident Aliens

http://www.irs.gov/formspubs/lists/0,,id=97819,00.html

These various IRA and IRAS (Singapore) will answer most of your questions with sufficient time to search.

sms


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