That's news to me. Directors fees are taxable just like everything else. The accountant is blowing smoke out his/her arse.David-asia wrote:An accountant told me that the first $20,000 in directors fees is not taxed. This right?
David
If you are PR then directors fees are not subject to CPF whereas a bonus is. If you are EP then it doesn't matter since you cannot participate in CPF.David-asia wrote:Still trying to get a hold of singapore taxes.
Any reason you would pay yourself a directors fee rather than a Non-contractual bonus?
David
I don't see any reason why you'd opt for either instead of taking out dividends...David-asia wrote:Any reason you would pay yourself a directors fee rather than a Non-contractual bonus?
jpatokal wrote:I don't see any reason why you'd opt for either instead of taking out dividends...David-asia wrote:Any reason you would pay yourself a directors fee rather than a Non-contractual bonus?
As a US citizen, we have taxes on worldwide income... I believe dividends from your singapore corp. are treated as passive income, which i think we have to pay self employment taxes on in addition to regular income tax. (i'm not a lawyer or accountant)I don't see any reason why you'd opt for either instead of taking out dividends...
Yes, "if". Most new companies get 0% corporate tax for three years.Strong Eagle wrote:Could be a big difference here, JP. For Singapore, if you actually have to pay corporate income tax it is at a 17 percent rate, although there are allowances and exclusions that lower the overall rate.
D'oh! Too bad for you Merkins thenIf you are a US citizen, dividends make a BIG difference. Dividends are not subject to the earned income exclusion, so an American in Singapore will almost never want dividends but directors fees and bonuses which are considered earned income.
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