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Singapore New Employment Sign-On Bonus

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vijsrinp
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Singapore New Employment Sign-On Bonus

Postby vijsrinp » Tue, 24 Jan 2012 7:40 am

Dear Expert,

My family company plans to hire me as Managing Director and declare me as employee with CPF contribution. Is it common in singapore for companies to pay sign-on bonus which I will declare as "other income" in my personal tax declaration.

Thanks in advance
Vijsrinp

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BillyB
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Postby BillyB » Tue, 24 Jan 2012 11:13 am

Of course - sign-on bonuses are quite common - and its at the discretion of the employer.

However, be careful it isn't misconstrued as tax avoidance if you are re-locating to SG; but that shouldn't be an issue if your company will be paying your CPF - you need to be a PR or a citizen to receive/make these payments and contributions.

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sundaymorningstaple
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Postby sundaymorningstaple » Tue, 24 Jan 2012 12:16 pm

Frankly, based on his posts thus far, I'd say the whole family is up to something dodgy. But that's his problem when ICA, MOM and IRAS compare notes and then contact their counterparts in Malaysia.

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Strong Eagle
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Re: Singapore New Employment Sign-On Bonus

Postby Strong Eagle » Tue, 24 Jan 2012 12:39 pm

vijsrinp wrote:Dear Expert,

My family company plans to hire me as Managing Director and declare me as employee with CPF contribution. Is it common in singapore for companies to pay sign-on bonus which I will declare as "other income" in my personal tax declaration.

Thanks in advance
Vijsrinp


Sure... just be sure to pay income tax on it. If PR or Singapore citizen, note that bonuses such as this attract CPF beyond the caps for monthly contributions.

You could pay yourself directors fees and avoid CPF but be aware that if you are PR, your failure to pay CPF will be taken into account when it is time for renewal.


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