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Salary charges on local monthly pay ?

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

Tofer
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Salary charges on local monthly pay ?

Postby Tofer » Wed, 03 Sep 2008 8:58 pm

I am negociating a salary with my employer who is offering me a job in Singapore. I will have a local contract. As I will have an Employment Pass, I will not pay for the CPF. So my question is: what will be then the difference between my gross salary vs. my net salary (in %) ?

Hithnar
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Postby Hithnar » Wed, 03 Sep 2008 10:52 pm

That heavily depends on what country are you coming from, and if your country has a deal with Singapore to avoid double taxation. Even on EP, you still pay taxes in Singapore, but you don't have to pay any taxes on income generated outside Singapore. If you are one of the few un-lucky ones with no deal about taxes - you will pay the Singaporean tax and the tax for your country. Second option: you pay them both, but in the end you will pay just the highest sum (that's my case :cry: ). If you are lucky, you pay just the Singaporean tax. More details : http://www.iras.gov.sg/irasHome/page01.aspx?id=88

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Strong Eagle
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Postby Strong Eagle » Thu, 04 Sep 2008 8:17 am

There is no official withholding of income tax in Singapore but many companies do implement a withholding system for EP's because they would have responsibility for unpaid taxes.

You will pay no CPF. There are no deductions at all for an EP unless your company withholds income tax for you, which at around $100,000 would be about 9 percent in the aggregate.

There are only two countries that I am aware of that attempt to double tax income. Of these, the US is the biggest hassle for US expats. I've not heard an expat from any other country needing to worry about double taxation (please let me know if there are others).

If you do have such a worry you should attempt to negotiate the double tax amount as well.

Tofer
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Postby Tofer » Thu, 04 Sep 2008 10:06 pm

I am currently working in France and there is a fiscal agreement between France & Singapore, so I won't have to pay my revenue taxes in both countries. I guess now the monthly taxes will depend on how much my company will take for my health coverage (big US firm that should have a private health plan for PE workers in Singapore). That will be part of my negotiations.
Thanks for your replies :-)


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