Take home pay?

[jfd]

Hi all,

Will be moving to Singapore soon, and have been wondering about the budget. I have found the table that shows me how much tax is taken out of your pay, which seems quite low which is of course very nice.

What I was wondering is if that was it? What are the extra deductions that might come out of my pay on top of that?

Also, in terms of rent, how much, as a proportion of your take home pay, do you pay out on rent? If this is too personal to answer, perhaps, what is the "norm" for an average expat? 1500, 2000, 3000, 4000, more?

Any and all advice appreciated!

[sundaymorningstaple]

Hate to rain on your parade, but there is no withholding from your paycheck. Singapore does not use a PAYG tax structure. You file your tax return during the first 3.5 months of the following year for the previous year's earnings, send it in and a couple of months later you get a tax bill from Pappy Lee and friends. You have 30 days to pay it. So, while the taxes are low, if you're in the 160K+ bracket it's still sucks having to write a big cheque at tax time so plan ahead.

Rentals are a loaded question and you get as many different answers here as there are people here. It primarily depends on what your definition of "expat" is. All foreigners here are expats but some only earn 8K/year while others earn 20K/month. So the living standards vary considerably. At the moment the rentals are in a state of flux so I'd venture between 2~6K/mo on the average. To try to peg it closer would depend on more data on who you are and your housing expectations.

sms

[jfd]

wow, nothing at all deducted! Everyone needs a bit of discipline to put away enough for the tax bill I guess.

Unfortunately not $20k/month, and I don't actually know what salary I will get yet, but certainly expect it will be > $100k/year.

From seeing posts on these forums, I notice that people seem to be more open about their pay level - is this something more openly accepted in Singapore? Or just due to the relative anonymity of the internet?

Thanks again for the advice!

[durain]

From seeing posts on these forums, I notice that people seem to be more open about their pay level - is this something more openly accepted in Singapore? Or just due to the relative anonymity of the internet?

take it with a pinch of salt...

[sundaymorningstaple]

Hey durain, I'd use a bunch more'n a pinch I reckon! I'd wager you'd need a shovelful to start!

[jfd]

*reaches for shovel*

[jpatokal]

Hate to rain on your parade, but there is no withholding from your paycheck. Singapore does not use a PAYG tax structure. You file your tax return during the first 3.5 months of the following year for the previous year's earnings, send it in and a couple of months later you get a tax bill from Pappy Lee and friends. You have 30 days to pay it. So, while the taxes are low, if you're in the 160K+ bracket it's still sucks having to write a big cheque at tax time so plan ahead.

You can also arrange to pay your taxes in monthly installments at no extra cost, so you don't necessarily need to keep tens of thousands sitting around in your bank account. Also, if you become a permanent resident, CPF (pension) payments are directly deducted from your salary -- but you don't need to pay any until you become PR.

[sundaymorningstaple]

JP, the monthly estimate is similar in concept to the US estimated tax paid quarterly. The big difference is Singapore still give you a choice. Why would anybody pay the government monthly?

Would make more sense to put it into a CD or other easily convertible investment vehicle and at least you make some money with it. Give it to the government and the make the money not you.

[hookedtothenet]

Hate to rain on your parade, but there is no withholding from your paycheck. Singapore does not use a PAYG tax structure. You file your tax return during the first 3.5 months of the following year for the previous year's earnings, send it in and a couple of months later you get a tax bill from Pappy Lee and friends. You have 30 days to pay it. So, while the taxes are low, if you're in the 160K+ bracket it's still sucks having to write a big cheque at tax time so plan ahead.

You can also arrange to pay your taxes in monthly installments at no extra cost, so you don't necessarily need to keep tens of thousands sitting around in your bank account. Also, if you become a permanent resident, CPF (pension) payments are directly deducted from your salary -- but you don't need to pay any until you become PR.

Do you mean that you can pay in instalments the following year, so you are always behind in payments, I have heard this might be the case?

[sundaymorningstaple]

Update on my previous post. JP's spot on. Yes you can pay by installment AFTER the fact and not "Estimated" tax although for the following years the payments WILL be estimated based on the previous years tax liability. I stand newly educated! So my interest saving scheme is totally wrong and the GIRO based payment system is the best. Not sure what would happen if you went on vacation and never returned though. Obviously you would never be allowed to even transit through Singapore after ripping off Inland Revenue.

http://www.iras.gov.sg/irasHome/page03.aspx?id=4468

[revhappy]

Hi Guys,

I will be coming to singapore next month. I am aware of the fact that Non -residents pay 15% and residents pay 5% tax.
Also to become a resident you have to be in the country for 183 days in a year. But then you can also bridge 2 years to qualify for the 183 days but then you will have to claim for a tax refund

My question is does the employer initially consider me as a resident or non-resident while withholding my taxes?

To be on the safe side I will be going there on on 29 Jun so that I complete 183 days in this year. Will my employer consider me as a resident while withholding taxes?

Also In case I go there 1 week late I will not complete 183 days this year. In this case will my employer still consider me as a resident?

Cheers,
Revhappy

[sundaymorningstaple]

There is not any withholding taxes. The employer doesn't withhold anything. You have to do that yourself and then pay the taxes the following year usually around April or May depending on when you file your tax return (you have from 1 Jan to 15 April to file for the previous tax year. As noted further up this thread you can pay your tax bill by installment with the government (I think that is probably provided it is more than a certain amount). All can be found on www.IRAS.gov.sg

[revhappy]

Oh I get it!
I really appreciate you answering my queries.
One more question. So say I come on 7the of july to singapore. That is about 4-5 days short of the 183 days.
On around 5th Jan 2010 I would have completed 183 days.

As you have mentioned that I have to pay the tax by the 15th April 2010, by then I would have completed over 183 days and would have become a resident, so in this situation do I still have to pay 15% and then claim a refund?

Cheers,
Revhappy

[sundaymorningstaple]

Yes. You only pay on a calendar year ending on 31 Dec. So you have to go through the motions by paying the taxes and then filing the re-assessment. It's still a 2 step process (be thankful you can even file the re-assessment!) This is a new ruling that has only been in effect since 1 Jan 2007. Before that, you weren't allow to bridge 2 years to fulfill the 183 days. Lot's got burned who arrived after 1 July prior to the change of the rules.

sms

[revhappy]

Thanks SMS, Appreciate all your help!

Cheers,
Revhappy!