Income Tax Information

[FaeLLe]

Hello everyone,

Am relocating to Singapore soon and would like some insights into income tax rates.

I hear that there is a lower IT rate for the 1st and 2nd year of stay in Singapore for foreigners. Can someone with insights advice please.

Thanks.

[blue_thunder]

Hello everyone,

Am relocating to Singapore soon and would like some insights into income tax rates.

I hear that there is a lower IT rate for the 1st and 2nd year of stay in Singapore for foreigners. Can someone with insights advice please.

No.

For more information visit www.iras.gov.sg

Tax calculator : http://www.iras.gov.sg/Tax%20Calculators/IIT/IIT.html





Thanks.

[FaeLLe]

Yea thanks that helped.

[Pepijn]

The first and second year as a PR you will have lower CPF contributions, but that's it. And being on an EP you get no CPF contributions anyway.

As far as I know the first 6 months will be taxed flat fee 15%, after that you are considered a tax resident and the above rates apply.

[sundaymorningstaple]

As far as I know the first 6 months will be taxed flat fee 15%, after that you are considered a tax resident and the above rates apply.

That is incorrect. The year you arrive in Singapore, if you are here less than 183 days you will be taxed at a flat 15% rate BUT if you are here over 183 days then you are taxed as as resident FOR THE WHOLE YEAR.

Considerably different that what you have said.

[Pepijn]

Ah, now THAT is something different from what HR here told me hahaha. Anyway, good to know, so I will not be paying that much then. Thanks

[sundaymorningstaple]

Have a read here:

http://www.iras.gov.sg/irasHome/page01.aspx?id=88

Specifically the two links for more than and less than 183 days.

[blue_thunder]

If you had stayed less than 183 days and earned less than $22k , then there is 0 tax.

[sundaymorningstaple]

If you had stayed less than 183 days and earned less than $22k , then there is 0 tax.

Sorry BT but you are wrong. If he's here less than 183 days he's taxed at 15% on all his income.

If You are Here for 61 Days to 182 Days in a Year

You will be regarded as a non-resident. The number of days in Singapore include weekends and public holidays.

As a non-resident:

You will only be taxed on all income earned in Singapore.
You will not be entitled to tax reliefs.
Your employment income will be taxed at a flat rate of 15% or the progressive resident rates depending on which results in a higher tax.

Which for all practical purposes unless you are well into the 20% tax bracket, will mean using the flat 15% rate. (For your information the break even point when the actual rates are better is over $426,000.

[blue_thunder]

If you had stayed less than 183 days and earned less than $22k , then there is 0 tax.

Sorry BT but you are wrong. If he's here less than 183 days he's taxed at 15% on all his income.

Nope.

I was in Singapore for less than 183 days but greater than 60 days on 2007 and my income was approx $21K and I did not pay any taxes for the FY 2007 .

[sundaymorningstaple]

That's because you passed the 183 days at the time you had filed your tax return. IRAS will allow you to straddle 2 years to qualify for the 183 resident rates. Depending on when you file or how close to the 60 days mark you are you might have to pay at 15% and then file an amended return to get back the taxes after passing the 183 days the following year.

Tax implications at a glance
If your period of stay (including work) in Singapore

Resident status

Tax implications
Is at least 183 days in a year Resident for that year All your income will be taxed at progressive resident rates.
You may claim tax reliefs.
Is at least 183 days for a continuous period over two years Resident for both years As above
Covers three consecutive years Resident for all three years As above

http://www.iras.gov.sg/irasHome/page04.aspx?id=6140

Different set of rules apply.

[blue_thunder]

That's because you passed the 183 days at the time you had filed your tax return. IRAS will allow you to straddle 2 years to qualify for the 183 resident rates. Depending on when you file or how close to the 60 days mark you are you might have to pay at 15% and then file an amended return to get back the taxes after passing the 183 days the following year.

Tax implications at a glance
If your period of stay (including work) in Singapore

Resident status

Tax implications
Is at least 183 days in a year Resident for that year All your income will be taxed at progressive resident rates.
You may claim tax reliefs.
Is at least 183 days for a continuous period over two years Resident for both years As above
Covers three consecutive years Resident for all three years As above

http://www.iras.gov.sg/irasHome/page04.aspx?id=6140

Different set of rules apply.

arghh....I was not aware of this clause . If I had left singapore before 183 days including the following year then I would have to fork out 15 % ..

[sundaymorningstaple]

You got it!

[thm]

"arghh....I was not aware of this clause . If I had left singapore before 183 days including the following year then I would have to fork out 15 % .."

Would that include a holiday to Thailand or a trip back to your home country for Christmas, for example?

[sundaymorningstaple]

As long as your employment pass is still valid, short trips o/seas count towards the qualifying time as you are on an employment pass. But your starting point will be the day you arrive in Singapore BEFORE you obtain your employment pass (could be several months if you got a 90 visa on arrival and didn't get your employment pass untill towards the end.