Singapore Expats

Tax and Employment pass issue

Discuss about getting a well paid job or career advancement. Ask about salaries, expat packages, CPF & taxes for expatriate.
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ecureilx
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Post by ecureilx » Tue, 19 Apr 2011 11:43 pm

BryanSin wrote:since my working days in sigapore is more than 60 days and less than 183 days, i shud be subjected to the taxes policy which set by IRAS. But, i dont know this issue last year which after i resigned, i go back to my own country and also my previous employer paid all my salary to me. which is a weird case, normally employer will deduct ur salary to paid for the tax but not my employer. is that he paid the tax for me? or he dont file in ?

p/s : if i subjected to tax, why i can enter and leave singapore without any issues now.
you are sounding like a broken record .. IT IS NOT WEIRD FOR EMPLOYER TO NOT HOLD YOUR SALARY ..

Employers deduct / hold salary, as the employer is responsible for your tax if you disappear .. but if your employer is not worried about you or trust you .. they dont'

I have had 6 plus employers here, in Singapore, and only one ever deducted/held back 20% of the pay, something they paid back at the beginning of the next year, when the tax assesment came, and then they too stopped this practice ..

Or maybe my comprehension of English sucks. ... :( :(

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sundaymorningstaple
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Post by sundaymorningstaple » Wed, 20 Apr 2011 12:24 am

ecureilx wrote:
BryanSin wrote:since my working days in sigapore is more than 60 days and less than 183 days, i shud be subjected to the taxes policy which set by IRAS. But, i dont know this issue last year which after i resigned, i go back to my own country and also my previous employer paid all my salary to me. which is a weird case, normally employer will deduct ur salary to paid for the tax but not my employer. is that he paid the tax for me? or he dont file in ?

p/s : if i subjected to tax, why i can enter and leave singapore without any issues now.
you are sounding like a broken record .. IT IS NOT WEIRD FOR EMPLOYER TO NOT HOLD YOUR SALARY ..

Employers deduct / hold salary, as the employer is responsible for your tax if you disappear .. but if your employer is not worried about you or trust you .. they dont'

I have had 6 plus employers here, in Singapore, and only one ever deducted/held back 20% of the pay, something they paid back at the beginning of the next year, when the tax assesment came, and then they too stopped this practice ..

Or maybe my comprehension of English sucks. ... :( :(
Actually, your employers were skirting the law. IRAS requires that employer withhold ALL salary once notice is given. (Therefore, even if you give 6 weeks notice when only 1 month is required, bang! you end up have two paychecks withheld (possibly). Additionally, if you do not withhold the employees last salary and IRAS finds out, then you can be fined up to $1000 per instance. As it only takes 7 to 10 days to get tax clearance if submitted online, there is no real problems any more, but in the old days it use to take 30 days to get a manual tax clearance so it was imperative that this was done.

It sounds like the employer, in our OP's father's case, paid the taxes. This is entirely feasible and there is a tick box on the online application to indicate if the employer is paying part or all of the Income Taxes. When these are ticked, then the computation uses a circular reference to compute the ever increasing salary as each computation adds additional income as the employer paying the taxes increases the income by that amount and thus a re-computation of smaller and smaller amounts until rounding eliminates the remainder. This does result in a slightly higher tax bill (or substantially higher if the guy makes enough money!)

sms
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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Post by BryanSin » Wed, 20 Apr 2011 7:51 am

if we just ignore the taxes problem, if i really subjected i will pay to them.

in this situation, while in the same time i m applying EP, will that be some issues regarding my EP application ? will it be approved or ????

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ecureilx
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Post by ecureilx » Wed, 20 Apr 2011 11:56 am

sundaymorningstaple wrote: Actually, your employers were skirting the law. IRAS requires that employer withhold ALL salary once notice is given. (Therefore, even if you give 6 weeks notice when only 1 month is required, bang! you end up have two paychecks withheld (possibly). Additionally, if you do not withhold the employees last salary and IRAS finds out, then you can be fined up to $1000 per instance. As it only takes 7 to 10 days to get tax clearance if submitted online, there is no real problems any more, but in the old days it use to take 30 days to get a manual tax clearance so it was imperative that this was done.
Dang, so I been lucky to have worked for employers who didn't hold back the salary :D - except one who held back, salary + sales commissions, and when I told IRAS that I am still here on a new job, the IRAS informed him to release it as the employee is under continued employment here.

Note to self: my being PR saves the hassle/headache/heartache of last month salary being held back - :D :D

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sundaymorningstaple
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Post by sundaymorningstaple » Wed, 20 Apr 2011 1:32 pm

ecureilx wrote:
Note to self: my being PR saves the hassle/headache/heartache of last month salary being held back - :D :D
In most cases this is true, except in the case where your last employer is your last employer in Singapore and you are giving up your PR and making a run for it. Then, that employer has to file an IR-21 (Tax Clearance) on your behalf. Of course, if they don't know you are giving up your PR, then it's a bit difficult to to so.......
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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