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Work as freelancer

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hykgpp
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Work as freelancer

Postby hykgpp » Thu, 28 Jun 2012 12:45 pm

Hi, guys. I am here to seek advice of how to address my issue.

I had a contract with a foreign company to provide business consultancy service. I am supposed to work as a freelancer. The foreign company will pay me into my local bank account ( Singapore)at a regular basis. I am holding LTVP, sponsored by my Singaporean husband.

This foreign company doesn't have a local office here. Thus no EP will be applied for me by them.

And I also know the regulations that LTVP holder is not eligible to set up sole-proprietorship, either.

What can I do to take this job forward?

Thanks a lot for any constructive point in advance. :) [size=12][/size]

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Postby sundaymorningstaple » Thu, 28 Jun 2012 3:45 pm

As long as your work does not interact with Singaporean residents nor companies registered in Singapore you are free to do so without an Employment Pass or Company/Business.

However, you are still required to file Tax Returns on the income derived here in Singapore (e.g., all the work you perform for your foreign employer) unless you can show evidence that you have filed and paid taxes on that income in your home country or tax residence. This could be offset depending on whether or not there are tax treaties in effect between the two countries as well.

It is Singapore Inland Revenue's contention that tax will have to be paid somewhere so if you, working offshore for an employer in your home country, (who doesn't have a presence in Singapore) don't pay taxes in your home country (due to being out of the country) then you WILL be liable to pay taxes on that income to Singapore. (Singapore doesn't tax it's citizens on income earned outside the country)

Clear as mud? :wink:
Last edited by sundaymorningstaple on Thu, 28 Jun 2012 3:50 pm, edited 1 time in total.

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Postby beppi » Thu, 28 Jun 2012 3:46 pm

You can't legally do any work on an LTVP. Full Stop.
Even if you get the new LTVP+, which allows work on LOC (given by MoM), you could only work for Singapore-registered entities.

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Postby sundaymorningstaple » Thu, 28 Jun 2012 3:53 pm

I'm trying to sort this out.........

ftopic56544.html

I don't believe that it matters one iota whether the individual is on a Dependent's pass or an LTVP as long as it's an offshore employer without any company presence in Singapore. It is different than being here on a Representative gig as that is interacting with Singaporeans and other businesses.
Last edited by sundaymorningstaple on Thu, 28 Jun 2012 3:58 pm, edited 1 time in total.

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Postby beppi » Thu, 28 Jun 2012 3:54 pm

Sorry SMS, our posts crossed (and you were slightly faster).
This is the first time I hear that foreigners can work in Singapore for foreign companies without a permit. Where did you get this from?

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Postby hykgpp » Thu, 28 Jun 2012 4:00 pm

sundaymorningstaple wrote:As long as your work does not interact with Singaporean residents nor companies registered in Singapore you are free to do so without an Employment Pass or Company/Business.

However, you are still required to file Tax Returns on the income derived here in Singapore (e.g., all the work you perform for your foreign employer) unless you can show evidence that you have filed and paid taxes on that income in your home country or tax residence. This could be offset depending on whether or not there are tax treaties in effect between the two countries as well.

It is Singapore Inland Revenue's contention that tax will have to be paid somewhere so if you, working offshore for an employer in your home country, (who doesn't have a presence in Singapore) don't pay taxes in your home country (due to being out of the country) then you WILL be liable to pay taxes on that income to Singapore. (Singapore doesn't tax it's citizens on income earned outside the country)

Clear as mud? :wink:


My work is supposed to involve business interactions with local companies.

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Postby sundaymorningstaple » Thu, 28 Jun 2012 4:02 pm

I was told this via MOM a couple of years ago but the post referring to it I believe was in the batch that we lost here due to hackers (and our hosts not backing up regularly at the time). My subsequent email to IRAS and a phone call confirmed however that regardless of having an employment/dependent/or other type of pass, it would/could be taxable to Singapore as I noted in the other thread linked above.

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Postby sundaymorningstaple » Thu, 28 Jun 2012 4:06 pm

hykgpp wrote:
sundaymorningstaple wrote:As long as your work does not interact with Singaporean residents nor companies registered in Singapore you are free to do so without an Employment Pass or Company/Business.

However, you are still required to file Tax Returns on the income derived here in Singapore (e.g., all the work you perform for your foreign employer) unless you can show evidence that you have filed and paid taxes on that income in your home country or tax residence. This could be offset depending on whether or not there are tax treaties in effect between the two countries as well.

It is Singapore Inland Revenue's contention that tax will have to be paid somewhere so if you, working offshore for an employer in your home country, (who doesn't have a presence in Singapore) don't pay taxes in your home country (due to being out of the country) then you WILL be liable to pay taxes on that income to Singapore. (Singapore doesn't tax it's citizens on income earned outside the country)

Clear as mud? :wink:


My work is supposed to involve business interactions with local companies.


I think I've already answered it, don't you? You are up the creek without the proverbial paddle unless you can somehow manage to get Representative status but if you are going to be creating an income stream, that will not work either. I'd have to say unless your foreign employer wants to fish for business legally here, you out of luck.

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Postby hykgpp » Thu, 28 Jun 2012 4:21 pm

sundaymorningstaple wrote:
hykgpp wrote:
sundaymorningstaple wrote:As long as your work does not interact with Singaporean residents nor companies registered in Singapore you are free to do so without an Employment Pass or Company/Business.

However, you are still required to file Tax Returns on the income derived here in Singapore (e.g., all the work you perform for your foreign employer) unless you can show evidence that you have filed and paid taxes on that income in your home country or tax residence. This could be offset depending on whether or not there are tax treaties in effect between the two countries as well.

It is Singapore Inland Revenue's contention that tax will have to be paid somewhere so if you, working offshore for an employer in your home country, (who doesn't have a presence in Singapore) don't pay taxes in your home country (due to being out of the country) then you WILL be liable to pay taxes on that income to Singapore. (Singapore doesn't tax it's citizens on income earned outside the country)

Clear as mud? :wink:


My work is supposed to involve business interactions with local companies.


I think I've already answered it, don't you? You are up the creek without the proverbial paddle unless you can somehow manage to get Representative status but if you are going to be creating an income stream, that will not work either. I'd have to say unless your foreign employer wants to fish for business legally here, you out of luck.


It's quite helpful. Highly appreciate your reply.

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Postby Strong Eagle » Thu, 28 Jun 2012 5:34 pm

hykgpp wrote:
sundaymorningstaple wrote:As long as your work does not interact with Singaporean residents nor companies registered in Singapore you are free to do so without an Employment Pass or Company/Business.

However, you are still required to file Tax Returns on the income derived here in Singapore (e.g., all the work you perform for your foreign employer) unless you can show evidence that you have filed and paid taxes on that income in your home country or tax residence. This could be offset depending on whether or not there are tax treaties in effect between the two countries as well.

It is Singapore Inland Revenue's contention that tax will have to be paid somewhere so if you, working offshore for an employer in your home country, (who doesn't have a presence in Singapore) don't pay taxes in your home country (due to being out of the country) then you WILL be liable to pay taxes on that income to Singapore. (Singapore doesn't tax it's citizens on income earned outside the country)

Clear as mud? :wink:


My work is supposed to involve business interactions with local companies.


Your only alternative is to create a business, probably a private limited. You then apply for an EP through the business.

Historically, this has worked for people who:

a) Are bringing an existing business to Singapore
b) Are skilled in the line of work they are doing
c) Have contracts or income streams out of the gate

It used to be easy to get an Entrepass, easy to form a company and get an EP. But, far too many people with far too little skills, experience and money were abusing the system to get into the country.

You should search the threads for "entrepass"... there is quite a bit of information, including those who have successfully created a company. Your company then bills your foreign company and receives income in Singapore.

About the only way to do it, I'd say. Just make sure that you have lots of documentation, and lots of patience.


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