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Can I be employed by company in my home country when on a DP

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emily.j.cheung
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Can I be employed by company in my home country when on a DP

Postby emily.j.cheung » Thu, 30 Dec 2010 3:20 pm

I am on a Dependents Pass and living in Singapore - been here 3 months. A company in my home country wants to employ me. They want me to work remotely, pay me into a bank account in my home country in the home country's dollars.
Am I allowed to do this?

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ksl
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Re: Can I be employed by company in my home country when on

Postby ksl » Thu, 30 Dec 2010 4:01 pm

emily.j.cheung wrote:I am on a Dependents Pass and living in Singapore - been here 3 months. A company in my home country wants to employ me. They want me to work remotely, pay me into a bank account in my home country in the home country's dollars.
Am I allowed to do this?
You may have a tax liability in Singapore on overseas earned income, check with tax office! Though I also think it maybe tax free in your case, 22k is the limit I believe before tax is payable.

emily.j.cheung
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Postby emily.j.cheung » Thu, 30 Dec 2010 4:27 pm

Thanks! I will check with the tax office.

So, I shouldn't need to change my Dependants Pass to something else then, even though those on DP aren't allowed to work in Singapore?
Im hoping not.

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Postby carteki » Thu, 30 Dec 2010 4:50 pm

I have another friend here who is doing just that. No problems - and the best way to have it! Also check what the tax situation is in your home country - it might be worth setting up an SG corp if you are taxed there and the tax rates are lower here.

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Postby ksl » Thu, 30 Dec 2010 4:58 pm

emily.j.cheung wrote:Thanks! I will check with the tax office.

So, I shouldn't need to change my Dependants Pass to something else then, even though those on DP aren't allowed to work in Singapore?
Im hoping not.
Actually DP holders are allowed to work in Singapore, all you need is the Company to fill in a letter of consent. Though in your case you do not need it unless you are actually doing work in Singapore for gain...If that is the case, you can setup your own sole proprietor business and employ yourself, signing your own letter of consent. Hope that makes sense....if you do a search on it you should find links about the procedure, its pretty straight forward.

Here's the link ftopic75000.html

emily.j.cheung
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Postby emily.j.cheung » Mon, 03 Jan 2011 1:48 pm

Ok - so I went into MOM to confirm that it is ok for me to work for a foreign company while on the DP. They said, if the company was Singapore registered then I have to get a Letter or Consent (LoC). But, since it is a company overseas and not registered in Singapore I actually can't work for them at all. This is different to what the previous replies have indicated. Am I talking to the wrong people at MOM? Do they not know their stuff?

I am worried that I will caught out with being on a DP with no LoC and yet still working.

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Postby JayCee » Mon, 03 Jan 2011 3:37 pm

If it's a foreign company and you'll be paid into a foreign bank account in foreign currency, why even tell them? They'll never know

emily.j.cheung
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Postby emily.j.cheung » Mon, 03 Jan 2011 5:32 pm

JayCee wrote:If it's a foreign company and you'll be paid into a foreign bank account in foreign currency, why even tell them? They'll never know


Yeah - I have asked myself the same question. But, if I do want to pay taxes here Singapore (because the tax rate is far better than in my home country, and our two countries have a tax agreement to allow me to), then I guess they could figure out that I was working.

I know that I am small fries to them , but I'm new to Singapore and really don't know how strict they are.

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Postby Strong Eagle » Mon, 03 Jan 2011 9:53 pm

emily.j.cheung wrote:
JayCee wrote:If it's a foreign company and you'll be paid into a foreign bank account in foreign currency, why even tell them? They'll never know


Yeah - I have asked myself the same question. But, if I do want to pay taxes here Singapore (because the tax rate is far better than in my home country, and our two countries have a tax agreement to allow me to), then I guess they could figure out that I was working.

I know that I am small fries to them , but I'm new to Singapore and really don't know how strict they are.


You will want them to pay you in Singapore, otherwise your home country will consider this a taxable event.

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ksl
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Postby ksl » Mon, 03 Jan 2011 10:18 pm

emily.j.cheung wrote:
JayCee wrote:If it's a foreign company and you'll be paid into a foreign bank account in foreign currency, why even tell them? They'll never know


Yeah - I have asked myself the same question. But, if I do want to pay taxes here Singapore (because the tax rate is far better than in my home country, and our two countries have a tax agreement to allow me to), then I guess they could figure out that I was working.

I know that I am small fries to them , but I'm new to Singapore and really don't know how strict they are.
Set up your sole proprietor business and fill in the LOC yourself, like the others have done, and have the income paid into Singapore.

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Postby beppi » Tue, 04 Jan 2011 12:25 pm

emily.j.cheung wrote:But, if I do want to pay taxes here Singapore (because the tax rate is far better than in my home country, and our two countries have a tax agreement to allow me to), then I guess they could figure out that I was working.


Where you're liable to pay tax never depends on your wishes, and rarely ever on where or how the money is paid (please disregard SE's reply above for this reason!).

Money received (regardless from whom and where) for work done in Singapore is taxable here.
To do this work legally, you need an LOC, EP or WP and thus a Singapore-registered employer. This can be your own company, as outlined above, but this is complicated.

You could of course do what you are planning under the table, as already suggested above. Chances of being discovered by Singaporean authorities might be small, but that doesn't make it legal or advisable.

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Postby emink » Mon, 07 Feb 2011 3:40 pm

Emily,

I don't want to fill up the board with similar posts so I was wondering if any thing else came of your situation? Since it's a company that can not provide you with an LOC, did you have to bail on the option?

Much Thanks

emily.j.cheung
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Postby emily.j.cheung » Sat, 02 Apr 2011 2:08 pm

Hi Emink,

I scrapped the idea cause i ended up getting a contract here (and subsequently getting an LoC).


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