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Guaranteed Exchange rate - would you take it?

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sundaymorningstaple
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Postby sundaymorningstaple » Wed, 23 Jul 2008 10:03 pm

Saint wrote:I await young SMS or SE to come up with the obviously simple answer :? :D


Okay, here's the skinny in a nutshell.....

Who are foreign employers?

Foreign employers include representative offices registered with International Enterprise Singapore and other entities not registered in Singapore. Foreign employers are considered as non-resident employers for tax purposes.

Do I have to pay tax if I am employed by a foreign employer?

* You will be taxed on income earned for the period you worked in Singapore even if your employer is not a resident in Singapore, or your income is not paid in Singapore. This also applies if your employer sends you here for training.
* Taxable income includes salary, bonus, allowances, honorarium, per diem, accommodation, leave passages, and value of any benefits-in-kind (e.g. food, transport) provided to you.
* Any allowances received from local sponsor companies are also taxable.


The other alternative that has some tax breaks are as an area representative.

Here are the two links for both:

http://www.iras.gov.sg/irasHome/page.aspx?id=1192

http://www.iras.gov.sg/irasHome/page03.aspx?id=336

sms

ayrej2
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Postby ayrej2 » Wed, 23 Jul 2008 11:07 pm

ok, I am no tax expert. Our company uses PriceWaterhouseCoopers, so I'm sure they've got it sussed.

I fear I might have caused more confusion, by trying to simplify the situation. In reality

Once my assignment starts I will be paid via a host payroll in Singapore. They will pay my Assignment Salary (Net GBP) as well as the host deliverables (Net SGD) (transport, utilities, housing etc) into my Singapore bank account. Since the Assignment Net Salary is quoted as a GBP figure, it will be converted each month at the variable exchange rate to be paid into my Singapore account. Alternatively, I may elect to have part or all of the GBP figure paid into my Singapore account at the guaranteed exchange rate. Currently GBP 1 = SGD 2.817300.

A home mandate could also be used to elect to have any amount of my Assignment Net Salary (GBP) paid into my UK bank account. The remainder would be paid as above.

Again, to keep the numbers easy say you earned 100K GBP
@2.8173 = 281K SGD (gauranteed rate)
@2.7268 = 272K SGD (todays rate)

almost 10K Sing dollars per annum. Adds up huh.

In reality the Monetary Authroity of Singapore manages the sing exchange rate, so who knows.

Hope that makes sense :???:

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Wind In My Hair
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Postby Wind In My Hair » Wed, 23 Jul 2008 11:18 pm

ayrej2 wrote:almost 10K Sing dollars per annum. Adds up huh.

Assuming you're like the rest of us and save and invest some of your earnings, you could make or lose S$10k in the stockmarket or property in a week. It's no big deal, put in perspective.

Why don't you hedge your bets and ask to be paid half in GBP and half in S$ at the guaranteed rate? Then whichever way the exchange rate goes, you'll be glad you were smart enough to have half your salary increase in value! :D

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Strong Eagle
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Postby Strong Eagle » Thu, 24 Jul 2008 7:02 am

ayrej2 wrote:ok, I am no tax expert. Our company uses PriceWaterhouseCoopers, so I'm sure they've got it sussed.


Yes, they do have the capacity to get it right, and with the arrogant attitude I've also seen them screw things up.

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Saint
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Postby Saint » Thu, 24 Jul 2008 7:04 am

God knows what would happen if you ever decide to become PR :o


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