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Are there any deduction from Salary on Foreign EP ?

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SR
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Are there any deduction from Salary on Foreign EP ?

Postby SR » Wed, 02 Nov 2011 2:10 pm

Dear all
I am considering new employments here on local packages and I am wondering if there are any employees deduction on the salary? For eg when a yearly salary is announce at 200ksgd will any thing be deducted (apart from income tax obvisoulsy)? I am coming from France and employees as you may know pay for social security, retirement etc.
THanks!

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sundaymorningstaple
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Postby sundaymorningstaple » Wed, 02 Nov 2011 3:08 pm

No. Nothing will be deducted at all. You will received a tax bill after the close of the tax year and it is due and payable. Although you can set of a GIRO direct payment monthly after you receive your tax bill. However, you need to then ensure that you ALWAYS have enough in that account to cover that monthly deduction. Otherwise, IRAS might think you are being a bad boy.

Only PR's and Citizens pay into the the CPF fund (Singapore's equivalent of Social Security/retirement, etc. )

Best place to start is right here: http://www.iras.gov.sg/irasHome/page01.aspx?id=88

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Strong Eagle
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Postby Strong Eagle » Wed, 02 Nov 2011 6:51 pm

SMS is correct. However, as an employer my employment contract with my employees allows me to withhold income tax. I do this because I would be liable if they skip without paying.

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ecureilx
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deduction

Postby ecureilx » Thu, 03 Nov 2011 10:51 am

And on rare occasions, a few employers hold another half month, as, of late, as a few FTs have used the office address in their mobile contracts and disappeared . :???: :???:

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Postby ausinsg » Fri, 04 Nov 2011 12:41 pm

Strong Eagle wrote:SMS is correct. However, as an employer my employment contract with my employees allows me to withhold income tax. I do this because I would be liable if they skip without paying.


Hi Strong Eagle,

So do you used the employment contract to get consent from the employee to withhold part of their pay to cover their tax obligations?

I recalling reading on the MOM website that employer's were no longer allowed to just withhold the pay to cover for income tax, like used to be the practice here. So I am interested if getting consent in the contract gets around this?

Can an employer withhold a portion of his foreign employee's monthly salary for income tax payment?

An employer is not allowed to make deduction from his foreign employee's monthly salary for income tax payment unless there is already an assessment by the income tax authority (IRAS) on the worker's tax liability.

http://www.mom.gov.sg/Documents/employment-practices/payment-of-salary-revised.pdf

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Postby sundaymorningstaple » Fri, 04 Nov 2011 1:37 pm

I don't think any of SE's employees fall under the Employment Act. That document only applies to those under the Act. If your salary is higher than that, it's whatever you negotiate. Take it or leave it.

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Postby ausinsg » Fri, 04 Nov 2011 4:03 pm

Good to know. Thanks :)

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Strong Eagle
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Postby Strong Eagle » Fri, 04 Nov 2011 6:53 pm

sundaymorningstaple wrote:I don't think any of SE's employees fall under the Employment Act. That document only applies to those under the Act. If your salary is higher than that, it's whatever you negotiate. Take it or leave it.


That is correct, SMS... all are/were paid a lot more than employment act minimums. And not all employees had this clause... mostly short term hires that might or might not consider tax issues for a short term contract.


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