Apparently MOM believes that you are employed part time. What you should find out to clarify your position is whether the company will file an IR8A (same as US W2) on your behalf, or whether the expectation is that you will declare income (sole proprietorship or otherwise) and handle your own taxes.ellejay00sg wrote:I'll just tag my question onto this post.
I am a DP holder. I applied to a company advertising a part-time position. After being selected, I was informed that because they cannot guarantee me a fixed number of hours a week, the contract will list me as a self-employed/freelancer not as a true part-time employee.
The flexibility of this position, the ability to be able to work from home after an agreed upon on-boarding period, and having only a few hours of work a week, is highly desirable. But when I brought up the subject of my contract stating I was to be a freelancer (contract for services), they said I did not need to have a sole proprietorship in order to work for them. The LoC they applied for for me, however, was approved!
Now, this seems to be contradictory to any information I read on the MOM website. This is a respectable MNC so I do not believe they are trying to pull the wool over my eyes. But I worry about tax and liability implications, things I would worry about if I were a "real" freelancer. And above all, if I was in a true freelancing position I would ask for 40% more hourly wage!
I feel now, I have sold myself very short. As a part-time employee with prorated vacation and sick leave, etc. this hourly salary would be acceptable, and this was my assumption when applying for the position. Not so any more.
I am prepared to renegotiate and turn down the job if necessary, but it would be unfortunate if I must do so. But is this type of contract extraordinary, simply local practice or highly illegal?
Highly illegal. Especially with you are doing the work in Singapore and get paid in Singapore too. If IRAS won't be hounding on your back, MOM will.deliciousdott wrote:Hi. I'm a student who intends to do an internship in Singapore but it's very likely that my visa application won't be successful. Hence, I am thinking about signing a contact with the company as a freelance.
In addition, I can enter Singapore without visa for maximum of 30days. So I can be in Singapore for 30days, back to my hometown for a few days then get back to Singapore.
Is it legal? Note that the salary is not high enough to pay tax so there won't be anything to do with IRAS.
1. You'll need to pay her a pretty hefty wage.Ak1nza wrote:Hi. I am a Singaporean Citizen and my wife has just received her LTVP. She has some offers for consultant/freelance work here in Singapore and I am trying to figure out the best way for her to be able to take on these projects. I understand the best method would have been her setting up a sole prop and then issuing a LOC to herself but that only applies to an LTVP+. Unfortunately, for some reason, the ICA officer only approved her for the LTVP (even though we have a child who is also a Singaporean Citizen and have been married for over 2.5 years). I was told I could not appeal, but could only re-apply for the LTVP+ after 6 months.
Does anyone know if it is possible for me to set up a sole prop and then hire my wife under a work permit? Any help on the actual process? How would I go about with regards to the issue of salary as she will be consulting/freelancing and not have a fixed monthly? Could I put a low salary amount of a few hundred (estimated less than her projects) and then just make up the difference in a 'bonus' payout later? Any other alternate ways that anyone here has experienced?
This has been a somewhat frustrating process for me as I fully expected we would get the LTVP+. I don't understand why the LOC does not apply to the LTVP as it applies to all other DP holders.
I would really appreciate any help! Thanks in advance!
Thanks for the responses. What exactly constitutes a 'hefty' wage? If I make her the manager of the sole prop would that be arms-length enough? Would a Private LTD company be a better solution (I don't see how it would be any different than sole prop)?PNGMK wrote:1. You'll need to pay her a pretty hefty wage.Ak1nza wrote:Hi. I am a Singaporean Citizen and my wife has just received her LTVP. She has some offers for consultant/freelance work here in Singapore and I am trying to figure out the best way for her to be able to take on these projects. I understand the best method would have been her setting up a sole prop and then issuing a LOC to herself but that only applies to an LTVP+. Unfortunately, for some reason, the ICA officer only approved her for the LTVP (even though we have a child who is also a Singaporean Citizen and have been married for over 2.5 years). I was told I could not appeal, but could only re-apply for the LTVP+ after 6 months.
Does anyone know if it is possible for me to set up a sole prop and then hire my wife under a work permit? Any help on the actual process? How would I go about with regards to the issue of salary as she will be consulting/freelancing and not have a fixed monthly? Could I put a low salary amount of a few hundred (estimated less than her projects) and then just make up the difference in a 'bonus' payout later? Any other alternate ways that anyone here has experienced?
This has been a somewhat frustrating process for me as I fully expected we would get the LTVP+. I don't understand why the LOC does not apply to the LTVP as it applies to all other DP holders.
I would really appreciate any help! Thanks in advance!
2. You need an arms length relationship.
3. It's probably more feasible for her to look for a job where she could get a WP/EP.
PR's are in the same boat mate - we have wives who can't work and yet bloody EP holders can get DPs and LOCs. It's a real gap in the mindset of the Gahmen.
Before answering your question, I wrote to MOM, ACRA, and IRAS. So far, MOM and ACRA have responded.LadyR0uge wrote:Hello. I am a Canadian citizen with a DP here. I am a 3d artist and I would like to work on a short-term contract for a company based in Montreal, Canada and that is not in Singapore. Do I have to register my business and get the LOC from MOM or since it has nothing to do with Singapore, I do not need the work permit?
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