Working for an Australian company in Singapore

[slewis69au]

Hello,

I have read lots of items on here and also done searches and i am still not 100% sure and want to ask some questions.

I will be doing a 12 month placement in Singapore and travelling with my Wife. I will remain employed by my employer in Australia and subject to Australian Taxation. For lots of complex reasons i NEED to remain an Australian resident and pay tax in Australia.

So as the income is being earned in Singapore i am subject to Singapore taxation. However from what i have read I should be able to apply for Tax Treaty Relief to avoid double taxation and therefore pay no tax in Singapore. Can someone out there please confirm that my interpretation looks right and what forms myself and/or my empoyer need to fill in?

Also my company will be renting "Corporate Accommodation" for myself and my wife and then i will be living there. The provision of this would not be subject to taxation in Australia however based on some of my reading it would be subject to taxation in Singapore - if my company rents the propertly who is liable to pay any applicable tax? The company or me?

I appreciate that this is a forum and maybe nobody here has been in this direct situation in which case i need to keep doing my own research but I thought it couldn't hurt to ask!

As well as providing accommodation my company is paying me a $1,500 a month "cost of living allowance" (which will also be subject to taxation). Given that i am pretty happy with my Salary in Australia does that sound like a good deal? I know it's a subjective thing but i just wanted an opinion...

If the questions are directly answered elsewhere and i have missed it I apologise in Advance.

Regards,

Stephen

[Brooklynjenn]

Can't answer your questions about taxation' but as for the cost of living allowance, that is about what we get (we are Americans, but the Australian dollar and the USD seem to be about on par these days), and it is close to covering the cost differential due to groceries and clothing and other goods being so much more expensive here. You might see about a transportation allowance too. Cars are extremely expensive here. Doesn't hurt to ask. Public transport is a good option here, but if you think you might want to drive, you'll need at least $1000/month to rent a car here.

[slewis69au]

Thank you for that - as things tend to be more expensive in Australia than the US your answer makes me pretty comfortable - now if i could just figure out the taxation stuff!

[Strong Eagle]

So as the income is being earned in Singapore i am subject to Singapore taxation. However from what i have read I should be able to apply for Tax Treaty Relief to avoid double taxation and therefore pay no tax in Singapore.

I just don't think that is correct. You are receiving services in Singapore, and I don't think they will let you live here without taxation when citizens must pay tax, regardless of where else you pay tax.

No, usually, the tax relief is granted by the country that you are not living in but are paying tax to... as us Americans must do.

[carteki]

Because of the time that you're spending in Singapore you WILL be subject to Singapore tax as well as Australian tax. You need to confirm with your employer that they will ensure that you are not out of pocket at the end of the day with regards to the double tax (also suggest that because of this they cover the cost of a tax expert in Aus to help you).

Are you sure that you can't become non-resident for Aussie tax purposes? There are a number of benefits to yourself for doing so.

[Mad Scientist]

Reading thru your initial post, I guess you are not an Ozzie Citizen rather a PR with conditions stamp on your immigration approval. If you are an Ozzie citizen, you can check with ATO to release you from Taxable Income as you are away for more than 180 days out of OZ

[ecureilx]

Reading thru your initial post, I guess you are not an Ozzie Citizen rather a PR with conditions stamp on your immigration approval. If you are an Ozzie citizen, you can check with ATO to release you from Taxable Income as you are away for more than 180 days out of OZ

exactly, that was the question - when I somebody who is doing Oz immigration

And his answer was "PAY BOTH SIDES" if you cherish your OZ PR !!!

[Mad Scientist]

Maybe I am wrong but since I am an Ozzie and I have contacted ATO and they find no issues as long as I am away for more than 6 months .
Come to think of it, you are either PR under skill migrant or under Sponsor with limited REP on your PP.
As long as you clear your tax obligation with ATO, you will be fine

[beppi]

It is never your choice where you pay tax.
You pay tax in Singapore if you work here and get paid for that work.
This seems to be your case.
If you are also a resident of another country, and if there is a tax treaty ruling out double taxation, you will not be taxed there (this is binding and not your choice). If there is no tax treaty or a treaty that does not cover your case, you might be double taxed (again, nothing you can do about it).
Rules on what constitutes "residence" also vary between countries, and some differ tax residence and visa residence.
If you need a definite answer, you may want to ask a good international tax consultant with experience in Singapore and Aussie law, instead of an Internet forum.

[slewis69au]

Hello All,

Thank you for your advice.

I will be consulting a tax accountant to determine my status i just wanted to get some general ideas.

Thanks Again

Stephen