Income Tax Information

poodlek · Post by **poodlek** » Mon, 03 Jan 2011 2:21 am

I've had a little look through the IRAS website and found some good information there, however it somewhat contradicts what my husband's employer has told him about how we'll be paying taxes this year.

He was told that the employer prepares the taxes, that there are no deductions and the only thing he needs to know is the rate, and they copy/pasted the same rate chart as was posted earlier in this thread. He asked about personal reliefs, specifically since he is supporting me and I have $0 income, but they said there were no considerations for that, he pays what the chart says and that's it.

I'm rather uncomfortable taking them at their word since they've proven themselves time and again to be unreliable and incompetent, so I checked it out on the IRAS website. Now I'm not sure what I can do about anything...if the employer is indeed responsible for filing the taxes, how can we be sure they're doing it accurately and taking all our considerations into account? Is there an option for reassessment after the fact?

Post by **sundaymorningstaple** » Mon, 03 Jan 2011 6:40 am

Yes. You can always file an amended IR8A if you, indeed, find out that there was some material facts left out. However, as there are so few deductions available, you may find yourself getting upset for no reason. In fact, 95% of the population is able to file without filing at all as the employers submit your earned income using the "auto-inclusion" method of reporting your earning to the IRAS. There are very, very few deductions/reductions of income allowable anyway.

sg_lover · Post by **sg_lover** » Mon, 03 Jan 2011 8:49 am

Hi,
Is there any difference between PR and Foreigner in tax?. Currently I am in PEP pass. If I convert it to PR.. Do I get any tax benefit?.

John

Post by **sundaymorningstaple** » Mon, 03 Jan 2011 10:10 am

The only discernable difference will be the fact that once you are a PR you will have to contribute to the CPF scheme with a maximum contribution based on your age and income. The maximum in any event will be a total of $15,300. This of course only applies to PR's & citizens. Work Pass holders (including PEP) are not liable nor able to contribute to CPF.

http://www.iras.gov.sg/irasHome/page.aspx?id=1572

PEP, PR, Citizen, EP, WP holders, once you have been here over 183 days you will be all taxed used the same set of rules and progressive tax rates.

http://www.iras.gov.sg/irasHome/page04. ... 8#resident

and legal deductions/reliefs

http://www.iras.gov.sg/irasHome/page.aspx?id=110

And a tax calculator to help you budget.....

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

sms

riseup · Post by **riseup** » Thu, 24 Feb 2011 12:33 pm

sundaymorningstaple wrote: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.

Sundaymorningstaple, are you positive about this information? It sounds logical, but I phoned the IRAS line and they told me you MUST be physically present in SG AND working for 183 days... any travel and you are no longer a resident. I disagreed, but she was insistent. Is your info corroborated somewhere?

Another question...I am in the same situation as above (started work Aug 2010 and continue to work). Do I need to file the "Request for reassessment from non-resident to resident" form before tax filing? Or is that only if you want a retroactive rebate? Can I just file as a resident without filing this form first?

Thanks!

Post by **Strong Eagle** » Thu, 24 Feb 2011 12:39 pm

riseup wrote:
sundaymorningstaple wrote: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.
Sundaymorningstaple, are you positive about this information? It sounds logical, but I phoned the IRAS line and they told me you MUST be physically present in SG AND working for 183 days... any travel and you are no longer a resident. I disagreed, but she was insistent. Is your info corroborated somewhere?

Another question...I am in the same situation as above (started work Aug 2010 and continue to work). Do I need to file the "Request for reassessment from non-resident to resident" form before tax filing? Or is that only if you want a retroactive rebate? Can I just file as a resident without filing this form first?

Thanks!

SMS is correct. Business trips and holidays don't change your status as 'resident in Singapore'. Your EP and its expiration date are all that matter.

Post by **sundaymorningstaple** » Thu, 24 Feb 2011 12:58 pm

riseup wrote:
sundaymorningstaple wrote: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.
Sundaymorningstaple, are you positive about this information? It sounds logical, but I phoned the IRAS line and they told me you MUST be physically present in SG AND working for 183 days... any travel and you are no longer a resident. I disagreed, but she was insistent. Is your info corroborated somewhere?

As an HR manager with 200 Staff, of which 50% are foreigners, I have tons of first hand data. You are not local and there is always a VERY strong chance that you were misunderstood. Even when you repeat it and they say they understand, it's a good possibility the line staff will still give you a wrong answer. I know for a fact as we have done it sever occasions. As long as your Employment Pass is valid, it matters not if you go to Malaysia or Timbuktu for the weekend, or for that matter a week because your company sent you to their overseas office for some reason (not permanent) as long as you are being paid from your Singapore company.

Another question...I am in the same situation as above (started work Aug 2010 and continue to work). Do I need to file the "Request for reassessment from non-resident to resident" form before tax filing? Or is that only if you want a retroactive rebate? Can I just file as a resident without filing this form first?

If you have been on an Employment Pass since you started working you will be okay. Just file as a resident and if they want to change it, they will. But as noted, if your EP is for a year it will automatically (normally) be taking into account that you will qualify under the 183 days/two consecutive year qualification. If for some reason it doesn't then and only then file for the reassessment. If you file after the point in time where you passed 183 days they will automatically know anyway.

Thanks!

aster · Post by **aster** » Thu, 24 Feb 2011 3:45 pm

sundaymorningstaple wrote:You are not local and there is always a VERY strong chance that you were misunderstood. Even when you repeat it and they say they understand, it's a good possibility the line staff will still give you a wrong answer. I know for a fact as we have done it sever occasions.

I once tried asking them via email how they treat days where someone arrives in Singapore or departs from here (do either count as a day spent in Singapore?) and three times in a row I just got a cut&paste answer with absolutely nothing to do with my question. I just gave up...

Post by **x9200** » Thu, 24 Feb 2011 3:53 pm

Yep, this is how it works. The closest fit it sent to you. It's not only IRAS, any gov body.

Post by **sundaymorningstaple** » Thu, 24 Feb 2011 4:36 pm

Have you ever noticed that all the FAQ's never seem to give a specific answer to you particular problem either!

aster · Post by **aster** » Thu, 24 Feb 2011 5:37 pm

So true!

P.S. Good to see that the 20% personal tax rebate is back after it was pulled for the previous year.

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Income Tax Information

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