PR without CPF

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Bafana
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PR without CPF

Post by Bafana » Sun, 18 May 2008 10:42 am

Hi Guys

Have been considering doing my PR for sometime now since I have been here for over 6 years now so considering it about time.

Problem is that I am paying into my Super in Australia 9% through voluntary payment along with paying insurances and investments for my daughters future studies etc so if I go PR its gonna kick financially since having spoken with my company that I am on an existing Contract if I go PR I will have to foot the entire CPF contribution (mine and companies) out of my current package. Net effect would leave me a 50% incoming locked up and Singapore not a cheap place to live.

Is tehre anyway of becoming a PR without CPF or am I screwed?
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Post by sundaymorningstaple » Sun, 18 May 2008 12:30 pm

The only way is to set up your own Pte Ltd company and pay yourself directors fees. Will your company take you off salary and pay you as a consultant from your own company?
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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CPF

Post by cks » Sun, 18 May 2008 5:42 pm

Central Provident Fund is something like a pension from the government here. They force you into putting in the money for your retirement. That is something we cannot control. However you still can remove your CPF if you revoke your PR next time.

Perhaps you should stop your voluntary contributions in Australia since you will be contributing to CPF. Anyway you should check with your local australian insurance agent on your insurance whether they are still covering you at the moment. Usually you have to write in to inform the insurance company on your relocation , this will allow them to see whether they can continue to cover you. If not informed, any claims arising may be disputed due to different mortality experiences in different countries.

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Post by sundaymorningstaple » Mon, 19 May 2008 12:21 am

cks, maybe you should read a little more carefully.

Baf is still an Australian citizen not a Singaporean. As he's been here 6 years already, I'm pretty sure he knows all about CPF. And yes, it is something you can control. I gave him a way to do it already. It's done quite often. It's also why there are some many Singaporeans "doing a business" here as you all quaintly put it. This way they only have to pay the Medisave Account percentages but not into the Ordinary or Special accounts.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Post by Bafana » Mon, 19 May 2008 8:20 am

sundaymorningstaple wrote:This way they only have to pay the Medisave Account percentages but not into the Ordinary or Special accounts.
What sort of percentage is the medisave?

Very interesting way of doing it mate especially since PR gets rid of the 2 months wage hold issue on cancellation EP which is a real pain in the butt whne shopping around to change careers.

Is it possible to set up the company before canceling EP so that their is no gap and once the the pte is up gte Pr and after PR granted switch across to pte?
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Re: CPF

Post by Bafana » Mon, 19 May 2008 8:21 am

cks wrote:Perhaps you should stop your voluntary contributions in Australia since you will be contributing to CPF.
Have been contributing into Australian super since I graduated so better to keep in rolling since thats my home and where I would like to retire.
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Re: CPF

Post by satrap75 » Mon, 19 May 2008 1:51 pm

Bafana wrote:
cks wrote:Perhaps you should stop your voluntary contributions in Australia since you will be contributing to CPF.
Have been contributing into Australian super since I graduated so better to keep in rolling since thats my home and where I would like to retire.
why get yourself a PR here to give yourself problems with the CPF? you can stick to your current permit. there won't be any strains on your finances.

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Post by Bafana » Tue, 20 May 2008 7:36 am

Reason why PR may be an option is looking to change career streams and don't want to get caught in the two month pay check hold em game with leave taken of the notice period (much loved by my current employer when any one resigns or is sacked).

Also want to help my wifes younger brother come and studya dn easier for me to do such if PR.

That said the long term financial burden may turn me off.
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Post by Saint » Tue, 20 May 2008 3:45 pm

sundaymorningstaple wrote:The only way is to set up your own Pte Ltd company and pay yourself directors fees.
Sounds very interesting as we're going to have to set up a Pte Ltd company when we arrive as Mrs S will be working for her present company but as a contractor.

How easy is it to set up a company as I've seen quotes on the net from Companies that will do everything for you but it costs over $1,600!!!

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Post by sundaymorningstaple » Tue, 20 May 2008 4:21 pm

Okay, SE is the man to talk to about setting up a Pte Ltd Company. I only set up a business (sole proprietorship). It should be less than 2K max and that should also include the statutory filings required, Secretarial Fees, Tax Filing and what not. Saint, you sound like you have found a reasonable price provided which they include all the above. It's doubtful you would have to be GST registered initially if at all so it should be even less without those quarterly filings.

Actually, I stand corrected. You do not pay any CPF on Director's fees. If you have a business (sole proprietorship) then the net profits which have to be reported on your personal tax return is subject to medisave payments as well as income tax.

Regarding Medisave rates. Following is the link to the tables/faqs. For the current rates/caps scroll down to the bottom of the page.

http://mycpf.cpf.gov.sg/Members/Gen-Inf ... .htm#Tbl_B

I believe it may be possible to set it up as you will still need a local director as well (your wife?). Therefore, yes, further investigation is in order. Talk to SE for the finer details.

sms
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Post by sundaymorningstaple » Tue, 20 May 2008 4:35 pm

Saint,

It's possible to set it up yourself, but a bit of a pain in the butt. You will still need a Company Secretary and at least a registered office. This can be a name & address of numerous companies providing such facilities here (Sometimes called serviced offices - but they are actual small offices. However those places also provide the rest of the facilities you would need).

For 1500~1600 it is much quicker, cleaner, and a lot less stumbling around and maybe repetition of submissions due to incomplete or inaccurate information.

Baf, Talk to SE. I know it can be done but I've not gone there before so cannot say with certainty the intricacies of the switch.

sms
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Post by Saint » Tue, 20 May 2008 5:03 pm

Thanks SMS, some great info there and seems to be a lot different than the UK.

I guess we need to decide if it's more advantageous to just set up a Partnership Company or a Pte Ltd Company?

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Post by jjoensuu » Thu, 10 Jul 2008 9:48 pm

Here's a purely hypothetical situation...

A PR comes to the country because he is hired as a salaried worker by Company X. He later decides to open his own Company Y (sole proprietorship or Pte Ltd). Company X then agrees to hire him as a subcontractor through his own company, Company Y. Would this affect his Permanent Residency?

Thanks

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Post by Bafana » Thu, 10 Jul 2008 10:06 pm

No.

As he is already a PR and can work for anyone he wants to.
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Post by sundaymorningstaple » Thu, 10 Jul 2008 11:35 pm

I've been a PR for around 16 of my 26 years here. I've had 4 jobs and my own company as a PR. No problems.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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