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The 183 day rule (tax residency)

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expat01
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Non Resident to Resident

Postby expat01 » Fri, 03 Sep 2010 4:03 am

Hi,

I met with an IRAS officer before I left Singapore and the officer counted the days in my passport and said I was 18 days short of the 183 day rule. He advised me to leave Singapore and then return. I am out of Singapore but have now received an assessment which states I am a non resident for tax purposes and have been taxed a flat 15%.

The IRAS are now saying that I fall between the 60 day and 182 day timeframe and my employer rather than pay me my final pay will be paying IRAS approximately $1000.

I arrived in Singapore 3 January and left 20 August. I was out out of the country for 61 Days. It seems the advice I got from the Officerf at Counter 31 should have been the exact opposite! I should have stayed in Singapore between August and September to meet the 183 days.

Because the amount I earned was under 20,000 I was hoping to be classified as a resident so as to have to pay 0 tax.

I am so upset that for the sake of $1000 I have shelved out money to leave Singapore for 79 days when I didn't qualify for that period anyway cause I was in my employment May, June, July and part of August which is well in excess of the 60 days.

Is there anything I can do or am I kissing the $1000 goodbye?

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Postby Mad Scientist » Fri, 03 Sep 2010 4:30 am

expat01

Did you get the name of the person who you spoke to before you left SG?
If you did, go and see IRA in person and sort it out using that officer name as your argument and your PP as proof of the advise given.
IMHO, you are out of luck BUT you can get a reduction base on error of judgement.
I was caught something similar years ago when my stupid auditor put the company profit into the directors tax return to reduce the company tax BUT physically we did not receive the money as the money was pumped back into the company as advise by the auditor. I was taxed a whopping $25K where I did not even see ONE cent of it. Went down to IRA with all docs and explain my predicament. Got reduce to $20K and to be paid monthly $1k for the next 20 month to tie me up with the cashflow.
AS long as you are genuine in your claim , they will accommodate you.
Good Luck and keep us posted
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expat01
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Tax Clearance 183 days

Postby expat01 » Sat, 04 Sep 2010 1:27 pm

Thanks for the advice. I didn't get the guys name but remember clearly where he was sitting... I also have the excel spreadsheet he prepared. And remember the family photos he had on his desk. So I am in Singapore on the 14th and will make a point of going in to the office to talk over the initial advice I received. Thank you for encouraging me to go back. There is no harm in revisiting the advice, and I will keep you posted. Many thanks

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Postby argiope » Fri, 24 Sep 2010 12:57 pm

Hi everyone,

I need some opinions here.

I was taxed 15% because i worked (on EP) for only 98 days and IRAS confirmed that as long as i work/stay in SG for another 85 days within 2010, i can request for tax reassessment from non-resident to resident status, in which i don't need to pay any tax at all - income less than $20k. At the same time, i'm still actively hunting for a job here while counting down the 85 days - on a social visit pass.

Now the problem is, when i returned to SG yesterday, the immigration officer at the airport told me that i'm only allowed to stay up to 19 days (instead of the usual 30 days) as i can't stay for more than 60 days in a 3-month duration. I have to leave SG for at least 1 month before i can step in again. By then, i would still short of 18 days.

Anyone encountered the 60 days in 3-month duration ruling? I can't seem to find this piece of info in ICA website. Can i also conclude that the best way to solve this is to apply for EPEC - but my uni is not listed in the "selected institutions list"?

Thanks in advance.

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Postby sundaymorningstaple » Fri, 24 Sep 2010 1:50 pm

Sounds to me like you are between a rock & a hard place. Applying for an EPEC will not do anything for you at all. Why do you want to do that? As your were already on an EP, the Gahmen already know you are academically okay.

If you think that getting an EPEC will get you an LTVP you couldn't be further from the truth. There have been many cases of people applying for and getting EPEC's and not being given an LTVP. In fact, there was a case here on this forum last month I believe. Another was only given 90 days. So that may not be a solution especially seeing as how ICA is the one giving out the LTVP. They will already know how long you have been here, etc, etc.

The best thing to do is to keep your nose clean here and just pay the taxes. Otherwise, as all the computer databases are connected now, giving IRAS a hard time may well impact your chances of securing an EP later. Who knows? I do know that if you rock the boat too hard, it will capsize.

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Postby carlsum1986 » Fri, 24 Sep 2010 4:19 pm

argiope wrote:Hi everyone,

I need some opinions here.

I was taxed 15% because i worked (on EP) for only 98 days and IRAS confirmed that as long as i work/stay in SG for another 85 days within 2010, i can request for tax reassessment from non-resident to resident status, in which i don't need to pay any tax at all - income less than $20k. At the same time, i'm still actively hunting for a job here while counting down the 85 days - on a social visit pass.

Now the problem is, when i returned to SG yesterday, the immigration officer at the airport told me that i'm only allowed to stay up to 19 days (instead of the usual 30 days) as i can't stay for more than 60 days in a 3-month duration. I have to leave SG for at least 1 month before i can step in again. By then, i would still short of 18 days.

Anyone encountered the 60 days in 3-month duration ruling? I can't seem to find this piece of info in ICA website. Can i also conclude that the best way to solve this is to apply for EPEC - but my uni is not listed in the "selected institutions list"?

Thanks in advance.


I experienced the 60days in three months rule but it depends where u are from...where do you come from if you dont mind me asking?

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Postby argiope » Sat, 25 Sep 2010 2:12 am

carlsum1986 wrote:I experienced the 60days in three months rule but it depends where u are from...where do you come from if you dont mind me asking?

I'm from Malaysia. Do they grant you another 30-day visit pass again when you return 1 month later?

So right now i guess my only bet is to apply for LTVP and if it's rejected, i have to return to MY for 1 month once the 19 days is up and attend phone interviews?

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Postby Mad Scientist » Sat, 25 Sep 2010 5:53 am

argiope wrote:
carlsum1986 wrote:I experienced the 60days in three months rule but it depends where u are from...where do you come from if you dont mind me asking?

I'm from Malaysia. Do they grant you another 30-day visit pass again when you return 1 month later?

So right now i guess my only bet is to apply for LTVP and if it's rejected, i have to return to MY for 1 month once the 19 days is up and attend phone interviews?

Malaysian or that comes in via Batam or JB has these problem of visa stay. Either they get a 7 day. 14, or 30. Rarely 90. This is the discretion of the border control officers.
Yeah go back for a month . Try if possible to come in via Changi. Or else try your luck at Woodlands but I am not sure you can get 30 days
The positive thinker sees the invisible, feels the intangible, and achieves the impossible.Yahoo !!!

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argiope
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Postby argiope » Sat, 25 Sep 2010 12:08 pm

Mad Scientist wrote:Malaysian or that comes in via Batam or JB has these problem of visa stay. Either they get a 7 day. 14, or 30. Rarely 90. This is the discretion of the border control officers.
Yeah go back for a month . Try if possible to come in via Changi. Or else try your luck at Woodlands but I am not sure you can get 30 days

The 19 days was granted at Changi. Sigh.
Somehow i find those at Changi look more strict than those in Woodlands.

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Postby Mad Scientist » Sat, 25 Sep 2010 6:21 pm

argiope wrote:
Mad Scientist wrote:Malaysian or that comes in via Batam or JB has these problem of visa stay. Either they get a 7 day. 14, or 30. Rarely 90. This is the discretion of the border control officers.
Yeah go back for a month . Try if possible to come in via Changi. Or else try your luck at Woodlands but I am not sure you can get 30 days

The 19 days was granted at Changi. Sigh.
Somehow i find those at Changi look more strict than those in Woodlands.


Sorry buddy for your predicament.I was thinking by going thru Changi your chances are higher which is the usual case, this is highly unusual that you did not get 30 days at Changi. The usual norm is stricter at Woodlands.
I have no control over this scenario which we can only advise base on what info we had from you.
The positive thinker sees the invisible, feels the intangible, and achieves the impossible.Yahoo !!!

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argiope
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Postby argiope » Mon, 27 Sep 2010 8:44 pm

Just for everyone's info.

I confirmed with ICA this afternoon that EPEC is still required for LTVP even if you were once an EP holder.

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Postby sundaymorningstaple » Mon, 27 Sep 2010 8:59 pm

argiope wrote:Just for everyone's info.

I confirmed with ICA this afternoon that EPEC is still required for LTVP even if you were once an EP holder.


You did, of course, confirm that that isn't always true, didn't you?

A foreign spouse married to a PR or Citizen doesn't have to have an EPEC to get an LTVP. (One has to be careful what one writes in a forum as half truth's can be hazardous to others mental wellbeing. :wink:

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Postby argiope » Mon, 27 Sep 2010 9:43 pm

Alright my bad for not indicating all the details: for those who are looking for employment in SG need to apply for EPEC from MOM before applying LTVP, even if you were once on EP.

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Re: Resident or Non-Resident Tax Rates

Postby JakeF » Tue, 28 Sep 2010 7:36 pm

sms[/quote]

From the IRAS this afternoon......

Dear SMS,

Under our tax residency rules, you will be regarded as a tax resident if you stay or work in Singapore for at least 183 days in a calendar year. The number of days in Singapore include weekends and public holidays.

Please note that foreign employees who are issued with work passes of at least 1 year validity are treated as tax residents upfront. However, they will be treated as non-residents if they have not met the 183-day requirement when they cease employment.

Hence the leave taken by the employee will not affect the residency status as it is taken when he is still in employment with the company.

regards

Yours sincerely


So just to clarify, sorry for this, Im in the process of signing a contract and PwC sorting out my EP for the investment bank ill be joining next Feb-April time, i imagine itll be a >1yr EP and id be very surprised if it isnt... So the day i start earning in Singapore, ill be classified as a tax resident? Im on an income of S$130k pa so i calculated a cumulative overall tax rate of 8.7% on that income resulting in around $11.5k tax over the year?

Also, the second i leave the UK, im no longer a tax resident of the UK and immediately tax resident of Singapore? PwC arent giving me a clear answer atm.

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Re: Resident or Non-Resident Tax Rates

Postby sundaymorningstaple » Tue, 28 Sep 2010 8:08 pm

JakeF wrote:
So just to clarify, sorry for this, Im in the process of signing a contract and PwC sorting out my EP for the investment bank ill be joining next Feb-April time, i imagine itll be a >1yr EP and id be very surprised if it isnt... So the day i start earning in Singapore, ill be classified as a tax resident? Im on an income of S$130k pa so i calculated a cumulative overall tax rate of 8.7% on that income resulting in around $11.5k tax over the year?

Correct. If your EP shows an expiry date that is more than 12 months from the issue date you will automatically be classified as a Tax Resident. However, should your EP be cancelled prior to your being here 183 days, then you will be charged at the Non-Resident rates of a Flat 15% or the resident rate, which is more. If you arrive here prior to July you would just pay the 15% when the IR-21 (Tax Clearance) is filed. If you were to arrive sometime after July it's possible that you could have filed a return, paid taxes on resident rates and sometime early the following year you EP was canceled before you reached 183 days. When the tax clearance is filed the would automatically recalculate the previous years tax and compute the current years taxes as well. Bit of a lot of info but there you go.

Also, the second i leave the UK, im no longer a tax resident of the UK and immediately tax resident of Singapore? PwC arent giving me a clear answer atm.

That is not exactly true. Depends if you came direct to Singapore. As far as the UK goes, I have no idea what their tax laws are. You may need to see a UK accountant for that. (I'm a Yank - but I can't help it, I was born there!) :wink:


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