Income tax for SPR travelling more than 180 days a year

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Minke
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Income tax for SPR travelling more than 180 days a year

Post by Minke » Mon, 05 Apr 2010 12:00 pm

Does anyone know if a Singapore PR working in Singapore will get a lower tax rate or other tax reliefs if he/she travels more than 180 days a year? I have my own company in Singapore and I am traveling a lot for this business. Called to IRAS but wasn't very convinced what one junior tax officer told me. Thanks

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sundaymorningstaple
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Post by sundaymorningstaple » Mon, 05 Apr 2010 12:33 pm

What did the IRAS officer tell you.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

Minke
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Post by Minke » Mon, 05 Apr 2010 1:41 pm

IRAS officer didn't fully understand my question and said that I will need the normal income tax even I would travel more than 180 days a year because I am a PR, not a foreigner

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Saint
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Post by Saint » Mon, 05 Apr 2010 2:08 pm

Minke wrote:IRAS officer didn't fully understand my question and said that I will need the normal income tax even I would travel more than 180 days a year because I am a PR, not a foreigner
Which is correct, the 183 day rule doesn't apply to PRs as you are classed as a local, not a foreigner.

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sundaymorningstaple
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Post by sundaymorningstaple » Mon, 05 Apr 2010 3:01 pm

You weren't misinformed. The 183 day rule is only applicable to non-residents. You really don't want to fall under that one as then you would pay taxes at a flat rate of 15% on your gross income. Bad news. Treated as a resident, you are subject to the normal graduated tax rates enjoyed by all citizens (which mean the first 20K is tax free). :wink:
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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blessedone
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I have a similar problem

Post by blessedone » Wed, 04 Apr 2012 11:01 pm

I have a similar problem and I have posted here about it - - http://forum.singaporeexpats.com/ftopic86899

Wanted a clearer understanding of the response here-
You weren't misinformed. The 183 day rule is only applicable to non-residents. You really don't want to fall under that one as then you would pay taxes at a flat rate of 15% on your gross income. Bad news. Treated as a resident, you are subject to the normal graduated tax rates enjoyed by all citizens (which mean the first 20K is tax free). Wink

Are we saying that being a PR the person is treated as local and hence the taxes applicable are those of a resident and calculated as directed here - http://iras.gov.sg/irasHome/uploadedFil ... 1_IRAS.xls

Kindly clarify.

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sundaymorningstaple
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Post by sundaymorningstaple » Thu, 05 Apr 2012 12:55 am

:roll:
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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blessedone
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oops, sorry!

Post by blessedone » Thu, 05 Apr 2012 1:26 am

I was just asking for a clarification to make sure I understand this right.

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zzm9980
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Re: oops, sorry!

Post by zzm9980 » Thu, 05 Apr 2012 7:11 am

blessedone wrote:I was just asking for a clarification to make sure I understand this right.
PRs pay the local tax rate:
http://www.iras.gov.sg/irasHome/page04.aspx?id=1190

From your other thread, I assumed you made so much money that the 15% flat rate would be advantageous and you were trying to game the system. Now I know you just didn't read the IRAS instructions. :)

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blessedone
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Thank you

Post by blessedone » Thu, 05 Apr 2012 10:47 am

I missed seeing this totally - one line made all the difference.

Different tax rates apply for tax residents and non-residents. You will be treated as a tax resident for a particular Year of Assessment (YA) if you are a:

Singaporean; or
Singapore Permanent Resident (SPR) if you have established your permanent home in Singapore; or


thank you for your help.

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