Thanks SMS. The fast response was much appreciated. Will be sure to clarify it with a UK accountant. Cant be doing with paying stupidly high UK taxes on top of Singapore ones!sundaymorningstaple wrote: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.
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!)![]()
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.