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Online business do I have to pay tax in singapore

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Ukvanessa
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Online business do I have to pay tax in singapore

Postby Ukvanessa » Thu, 12 May 2011 11:36 am

I am a uk citizen currently living in Singapore and hold a dependant pass

I am setting up a website it will be an information site which may in the future generate a small income from advertising The site will not be connected to Singapore in anyway I just happen to be living here while operating it.
The site will be a .com site with the business registered in the uk and any income generated paid directly into a uk bank account and tax paid in the uk.

Will the fact that I live in Singapore create any issues with the authorities?

Thank you in advance for any advice you can give me

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Strong Eagle
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Postby Strong Eagle » Thu, 12 May 2011 12:11 pm

No. So long as you are declaring your income somewhere. But given the huge difference in income tax rates, why not get paid and taxed in Singapore?

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Postby Godmode » Fri, 13 May 2011 12:53 am

if ur money directly hitting UK bank then no need to pay taxes but considering tax benefits, i would suggest looking at receiving money in Singapore.

however, you must get a LOI to work in singapore + you need to register a sole prop

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aargon
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Postby aargon » Fri, 13 May 2011 7:05 am

What if its an "adult" website - would it be illegal to set one up in Singapore?
Everybody was KungFu Fighting.....

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Postby beppi » Fri, 13 May 2011 9:58 am

Please disregard the wrong information given by above posters with regards to taxability depending on country of payment. I have pointed out many times (even to the same posters) that this is WRONG!

In fact, taxability in Singapore depends on WHERE THE WORK IS CARRIED OUT, regardless of where and how you get paid for it.
If you work in Singapore and somebody pays you for it into a UK bank account, it is still taxable in Singapore, same as if he had paid you here.

Now in your case it is not clear (to me) where the work is actually carried out. Ask IRAS how they handle this.
But believe me: given the low tax rate, you WANT to be taxed here rather than almost anywhere else.

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Strong Eagle
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Postby Strong Eagle » Fri, 13 May 2011 10:09 am

beppi wrote:Please disregard the wrong information given by above posters with regards to taxability depending on country of payment. I have pointed out many times (even to the same posters) that this is WRONG!

In fact, taxability in Singapore depends on WHERE THE WORK IS CARRIED OUT, regardless of where and how you get paid for it.
If you work in Singapore and somebody pays you for it into a UK bank account, it is still taxable in Singapore, same as if he had paid you here.

Now in your case it is not clear (to me) where the work is actually carried out. Ask IRAS how they handle this.
But believe me: given the low tax rate, you WANT to be taxed here rather than almost anywhere else.


Well... I dunno, beppi... I base my views on this document.

http://www.iras.gov.sg/pv_obj_cache/pv_ ... 003bc3.pdf

and this one

http://www.iras.gov.sg/pv_obj_cache/pv_ ... 004it8.pdf

I suppose the question is whether this is service income or employment income.

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Postby beppi » Fri, 13 May 2011 10:38 am

Oh, sorry, it seems in this case I am wrong and SE is right:

What I said is true for EMPLOYMENT INCOME and what the OP probably doesn't fall into this category.

My apologies!

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aargon
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Postby aargon » Fri, 13 May 2011 11:43 am

beppi wrote:Oh, sorry, it seems in this case I am wrong and SE is right:

What I said is true for EMPLOYMENT INCOME and what the OP probably doesn't fall into this category.

My apologies!


YOU ARE A CLOWN.
Everybody was KungFu Fighting.....

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Strong Eagle
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Postby Strong Eagle » Fri, 13 May 2011 11:59 am

aargon wrote:
beppi wrote:Oh, sorry, it seems in this case I am wrong and SE is right:

What I said is true for EMPLOYMENT INCOME and what the OP probably doesn't fall into this category.

My apologies!


YOU ARE A CLOWN.


Why the personal attack? beppi has worked in multiple countries and knows the complexities of the tax code. The question up for debate is whether income derived from website advertising is employment income or service income. I suppose it could go either way.

a) He is 'employed' creating websites that generate the money he earns.
b) His earnings are service income, or passive income resulting from ad revenues.

Either way, your comments are off base.

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Postby beppi » Fri, 13 May 2011 12:41 pm

Thanks, SE!

I also know the complexities of the human psyche and am not offended by somebody calling me a clown. (After all, there IS some truth in that statement! :lol: )

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aargon
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Postby aargon » Fri, 13 May 2011 1:49 pm

beppi, your post did make me laugh which is what clowns do.

lighten up - its a friday!

My apologies anyhow!
Everybody was KungFu Fighting.....

Mr Tan
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r

Postby Mr Tan » Tue, 31 May 2011 1:54 pm

u dont have to pay a single cent for income online, but if u want to donate u can.

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Strong Eagle
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Re: r

Postby Strong Eagle » Tue, 31 May 2011 3:04 pm

Mr Tan wrote:u dont have to pay a single cent for income online, but if u want to donate u can.


If you want to avoid breaking the law, I really would not follow this advice.


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