-----------------------------------------------------BillyB wrote:manutdfan wrote:Depends how the package is structured:BudoMan wrote:
Apologies, I didn't mention that we have two elementary aged kids who will attend one of the int'l schools. It is correct that I will pay the int'l school fees out of pocket but this portion will be pulled off the monthly salary & paid directly to the school to reduce personal tax.
You're not going to save that much by doing this - assuming that IRAS don't see the school fees as a taxable BiK anyway.
At 11,500 a month your marginal rate at that level will be 15% (and less if the effect of school fees is to take the monthly payments down to below 10,000 a month).
I'm not saying it's negligable, but given that the income tax rate alone in the UK at that level is 40%, it could be a lot less of a win than you think it is.
On base only - tax will be around 9%
On base and housing (If combined for tax purposes) - tax will be around 12%
On base, housing and bonus ( depending on structure ) - tax will be around 12.5%
But I agree - school fee's do eat into the disposable quite significantly. Depends on the position the OP is in and ghow much the company need him out here. Supply and demand and all that. I'd get back to the table and thrash out more negotiations!!
A quick update since my last post;
Our trip to Singapore over the past few days has been very insightful. I strongly recommend that anyone who is thinking about a move to Singapore (or any foreign posting for that matter) make a visit and do a "look-see" beforehand.
We are in Singapore now and have been able to meet a variety of people who are well-acquainted with their respective areas (business, schools, housing, chambers of commerce, member's clubs etc...). All have offered helpful advice, sometime similar and others completely contradictory (especially on where to live and salary compensation). All of this feedback from those on the ground is giving us a much more clear picture of reality of working and living in Singapore, so we can make well-informed decisions.
BillyB and others; Very good advice regarding negotiations....a school allowance has since been secured, along with car allowance and an increase in base pay. We are ready for the move. Thanks again to all who offered valuable feedback and advice via this forum.
For those thinking about relocating to Singapore, I highly recommend reading thru this string of posts. All the best!