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Scenario-aus citizen with EP-aus tax ? SG pte ltd

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Dragobrat
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Scenario-aus citizen with EP-aus tax ? SG pte ltd

Postby Dragobrat » Sat, 19 Jan 2013 5:37 pm

Hi. To pose a quick scenario - I am an australian citizen, I then move to SG to reside, gaining an entrepass and forming a SG pte ltd co.
As I understand - any monies I make offshore by invoicing companies for my maintenance related services would be tax free in SG because it is was dervied offshore.

But what happens if I complete the work back in Australia? I guess because I am now NOT residing in aus it should be tax free.
But I have heard mentioned that withholding tax rules might apply?

I contacted a tax lawyer in Aus and they said I might be able to do it but to organise it properly I should document my intentions and that they could write a statement for me for $5000.
Thanks.

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sundaymorningstaple
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Postby sundaymorningstaple » Sat, 19 Jan 2013 7:43 pm

As I understand - any monies I make offshore by invoicing companies for my maintenance related services would be tax free in SG because it is was dervied offshore.


Where are you performing the work? Outstation or sitting behind a computer in Singapore? The way I understand the Singapore Tax laws are based on where the work is being performed by you, regardless of where the client is billed. If you are actually performing the work IN Singapore, it's taxable to Singapore as the work is being performed here. On the flip side, if you physically go to the client's premises outside of Singapore to perform the work then it's not taxable to Singapore.

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Re: Scenario-aus citizen with EP-aus tax ? SG pte ltd

Postby Strong Eagle » Sun, 20 Jan 2013 1:12 am

Dragobrat wrote:Hi. To pose a quick scenario - I am an australian citizen, I then move to SG to reside, gaining an entrepass and forming a SG pte ltd co.
As I understand - any monies I make offshore by invoicing companies for my maintenance related services would be tax free in SG because it is was dervied offshore.

But what happens if I complete the work back in Australia? I guess because I am now NOT residing in aus it should be tax free.
But I have heard mentioned that withholding tax rules might apply?

I contacted a tax lawyer in Aus and they said I might be able to do it but to organise it properly I should document my intentions and that they could write a statement for me for $5000.
Thanks.


Unless you are physically performing the services in another country, then your income is taxable in Singapore. Example: I live in KL and provide project management services to a company in KL. My corporate income is not taxable in Singapore as it is being earned in Malaysia (and the expectation is that I will pay MY tax). Example 2: I live in Singapore and supply project management services to a company in KL via teleconference, email, etc. My corporate income is taxable in Singapore.

If you do any kind of business in Australia, you must have a corporate presence. If you are doing the work via a contracted subsidiary, then you can escape most tax, including VAT. AU tax situation is quite complicated for foreign companies, and if you are going this route, I can put you in touch with an expert who specializes in such matters.


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