littlegreenman wrote:Come to think about it, guys sorry but I disagree. Rule is: you pay taxes where you live. In this case she will be out of Hungary for a year. For simplicity let's say one tax year (keeping in mind that Singapore observers like many other countries it has dual taxation agreements with the half year mark as the deciding factor). So if she is in Singapore for half a year she is a non-resident at home and theoretically doesn't have to pay income tax there as you pay taxes where you live (unless Singapore and Hungary don't have a dual taxation agreement). She then has to pay the tax in Singapore accordingly if she stays in Singapore for more than 60 days.
http://www.iras.gov.sg/irasHome/page.aspx?id=1192
You will be taxed on income earned for the period you worked in Singapore even if your employer is not a resident in Singapore, or your income is not paid in Singapore. This also applies if your employer sends you here for training.
...
+If you work in Singapore for 60 days or less in a calendar year, you will be exempt from tax on your earnings here.
+If you work in Singapore for 61 to 182 days in a calendar year, your income will be taxed at 15% or resident rates for individuals, whichever gives the higher tax.
+If you work in Singapore for 183 days or more in a calendar year, your income will be taxed at resident rates for individuals.
And that is if you are employed by a foreign employer. Pls note tax resident is not equal to resident as in immigration status. Of course she would get away with not paying taxes in Singapore I guess but if you strictly follow the IRAS guide this is what should happen in theory.
I cannot speak for any other mentioned country but the facts in this case are:
a) Laptop is used to perform work delivered outside of Singapore.
b) Monies are collected outside of Singapore.
c) No business dealings are conducted in Singapore, no services delivered, no invoices made, no payments received in Singapore.
There is no tax and no requirement to file for same. Of this I am absolutely sure.
My company has performed work outside of Singapore. In one case, we billed a Singapore entity. I am liable to report the income for income tax purposes because I invoiced and received money in Singapore but not liable for GST since the services were delivered out of the country.
In another example, I performed services out of the country and my subsidiary in the other country billed in that country and paid taxes on earnings. I was free to repatriate those funds to Singapore with no tax consequences (except for the gawd awful repatriation tax... which Singapore allows a partial allowance for under tax treaty).
I am familiar with a number of people who have no tax home and pay no tax... they live all over the place around Asia... and work under the radar. I have no comment about the legality of the situation.
and bureaucracy and that is never easy! Just imagine how hard the People are having it, that have lost millions to rouge lawyers, I wonder also if they paid tax on it considering they where from the US, I mean was it earned income outside of Singapore? who knows what goes on in this Country. 
