EP holder going for 2 year overseas assignment

mothbhai2 · Post by **mothbhai2** » Mon, 12 Sep 2011 6:26 am

Hi. I have been in Singapore for past 6 years on an EP (P1) - working for a major MNC. The company is sending me on a 2 year expat assignment to work for our parent company in the US. I will continue to be an employee of the Singapore subsidiary, and will come back here at the end of this assignment.

What happens to my EP while I am away? Mr HR folks think my EP should be cancelled when I transfer away - but I have not seen any guideline on the MOM website that requires this. It only says that EP should be cancelled in case of leaving employment.

I also have questions that in case my EP needs to be cancelled - what will happen to all the places where I have used my FIN number - like for driving license, bank accounts, tax (I will continue to pay taxes here as I have property income), etc etc.

Thanks for the help in advance.

BillyB · Post by **BillyB** » Mon, 12 Sep 2011 11:06 am

This is a good point and I'm interested to also hear the outcome, as the same may happen to me next year. Additionally, how does the same situation sit for PEP holders?

I'd make an appointment at the MOM and get the information first hand but do report back and share your findings.

Post by **singaporeflyer** » Mon, 12 Sep 2011 11:09 am

If you work overseas for the same SG company and if you are paid in SGD and pay your taxes in SG, then your company can still hold the EP for you. Just my 2 cents.

BillyB · Post by **BillyB** » Mon, 12 Sep 2011 11:12 am

singaporeflyer wrote:If you work overseas for the same SG company and if you are paid in SGD and pay your taxes in SG, then your company can still hold the EP for you. Just my 2 cents.

But you'd be a resident for tax purposes in the US as part of the visa conditions?

If not, it's a bit dodgy living and working in another Country and paying tax in another?

Post by **sundaymorningstaple** » Mon, 12 Sep 2011 1:12 pm

Doesn't really matter as the US doesn't have a tax treaty on earned income with Singapore. This means that he may have to pay taxes to both places like I do and have done for almost 30 years (albeit, I am able to tax advantage of the income earned abroad exclusion) if he keeps his EP. However, if canceled then he would only pay US taxes.

For clarification see the following links:

http://www.iras.gov.sg/irasHome/page04.aspx?id=104

http://www.iras.gov.sg/irasHome/page04.aspx?id=1190

mothbhai2 · Post by **mothbhai2** » Mon, 12 Sep 2011 1:33 pm

Thanks all. This is very helpful.

My primary question was - do I have to cancel the EP, or not. I would prefer to keep it for continuity sake. Singaporeflyer hinted that I can, but looking for more conclusive input. Will also explore calling MOM on this.

Regarding taxation - that was not my worry. My salary will be converted to USD and paid to me in US. I will only continue to earn rental income here - for which I expect to pay income and property tax here (even if my EP is cancelled). Double taxation issues if any will be covered by my company - so I am not concerned with that.

Post by **singaporeflyer** » Mon, 12 Sep 2011 1:47 pm

mothbhai2 wrote: My primary question was - do I have to cancel the EP, or not. I would prefer to keep it for continuity sake. Singaporeflyer hinted that I can, but looking for more conclusive input. Will also explore calling MOM on this.

Retaining your EP is purely dependent on your Company's decision. They surely have an option to retain.

Post by **Strong Eagle** » Mon, 12 Sep 2011 2:03 pm

A useful question: Are you an American and/or what will your work permit status be in the US?

mothbhai2 · Post by **mothbhai2** » Mon, 12 Sep 2011 3:04 pm

Singaporeflyer - thanks for the clarity. I will also check with MOM like you suggested and if indeed it is an option to retain the EP - will work that with my HR folks.

Strong Eagle wrote:A useful question: Are you an American and/or what will your work permit status be in the US?

I am Indian, and I will be on an L1 visa.

JR8 · Post by **JR8** » Mon, 12 Sep 2011 4:40 pm

mothbhai2 wrote: I also have questions that in case my EP needs to be cancelled - what will happen to all the places where I have used my FIN number - like for driving license, bank accounts, tax (I will continue to pay taxes here as I have property income), etc etc.

Your FIN stays with you for life. I.e. if your EP was canceled and you returned 2 years (or many years) later and got a new EP, you would have the same FIN as before.

mothbhai2 · Post by **mothbhai2** » Mon, 12 Sep 2011 7:21 pm

Thanks all. I got the answers i was seeking.

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EP holder going for 2 year overseas assignment

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