How to pay income tax on a PEP

[markyboy]

I have had a PEP since July 2008. So at the end of the calendar year I have to make an annual salary declaration to MOM which is a very straight forward form stating the year and salary earned.

Do they then send me a tax bill for 15% of that amount or do i need to do a separate tax return and send it off to someone else? I understand that I should be paying 15% flat rate on earnings but am unsure of the process to actually pay it.

Thanks for your advice!

[sundaymorningstaple]

You need to file your tax return using "Form M" This is not available for download from the IRAS site but can be obtained by calling IRAS at 6356 8300.

With the new ruling by IRAS regarding the ability of now of spanning two years to qualify for the "resident" status, you would still have to file the Form M and subsequently after passing the 183 day threshold for resident rates you would have to file the "Request for Tax Reassessment from 'Non-Resident' to 'Resident' Status. Upon filling out the form it also asks you to indicate whether your refund should be credited to your bank account or send you a refund cheque to your address. You can download that Word document with the link below.


Request for Tax Reassessment from 'Non-Resident' to 'Resident' Status

All this information came from the IRAS site page here:

http://www.iras.gov.sg/irasHome/page03.aspx?id=848

SMS

[sundaymorningstaple]

markyboy,

There is one other thing. You indicated that you have had your PEP since July. When did you arrive in Singapore? In June or July? If you arrived in June and have actually been "Physically" in Singapore prior to getting the PEP you probably have already qualified for resident rates. "Resident" timeline is not from the granting of your PEP but from the date you actually arrived in Singapore. Could make all the difference!

SMS

[markyboy]

Yes i was in Singapore prior to July. Actually I was working on an EP.

So I have a whole year tax to pay and can do the resident form. But do they actually send me a return to fill out or is the onus all on me? The tax deadline is 15 April 09 correct?

This would be my first tax year for Singapore, I don't mind paying tax, but no one is chasing me for anything which makes me wonder....

[kman]

I was granted my PEP in September 2008 and started employment on Nov. 18th 2008 with a Real Estate Company... So In effect, I have worked for under 60 days in 2008 in Singapore.

Do I have to fill out any forms or are there any Tax implications for me that I should be aware of. I was under the impression that I am exempt for 2008 since I have only been working for a month and a half.

SMS, would appreciate any info you have. Any declaration form that I need to submit ? Can it be found online ?

Thanks in advance!

[sundaymorningstaple]

Read my earlier post. Your time starts on your arrival in Singapore (the date on your arrival card and in your passport. It is not the dat you start work. If you arrived in Sept, you will be taxed at a flat 15% rate and like the other poster will have to file the requisite forms to reclassify after being here 183 days spanning the two year period. (It goes either way). If you arrived after November 2nd, then you would be scot free for the first year but not if you arrived in September.

[sundaymorningstaple]

Markyboy, if you earned over 23K you will be required to file a tax return. If your employer is on the auto-inclusion scheme they will send your income statement electronically to IRAS (this is the first year and it is mandatory if the company has more than 100 employees.) Companies with less employees will be required from next year.

If the employer falls under this scheme, they employer will notify you that you do not have to file 'unless the IRAS sends you a form' which will be pre-filled out with your income earned for the year automatically. However, if you also have other reportable income then you would have to request a form from IRAS and proceed to file manually or online or via phone. The best thing to do is to start here:

http://www.iras.gov.sg/irasHome/page01.aspx?id=88

There are two choices for foreigners, Over 183 days and under 183 days (there is even a calculator for you to use to figure that out as well. Make your choice and start reading. All your question will/should be answered.

sms

[kman]

I was only in Singapore for a few days in September on a tourist visa to collect my PEP.. Subsequently I arrived on Nov 15th on my PEP and started work on Nov 18th.

So I guess I'm "scott free"! But is there any income declaration form or anything I have to do at all for 2008?

Thanks.