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Income tax etc in Singapore

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IanE
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Income tax etc in Singapore

Postby IanE » Sun, 03 Nov 2013 5:04 pm

Hi all,

I am currently in discussions about moving to Singapore early in 2014 and I should be able to get a P1 Employment Pass. I plan to be in Singapore for at least a year.

I am currently looking into the finances and trying to work out what my take home pay would be after tax and any other deductions to work out if I can afford to move to Singapore or not.

I'm slightly confused about whether I would be considered tax resident or non-resident. It says on the IRAS website: "a foreigner who has stayed / worked in Singapore (excludes director of a company) for 183 days or more in the year before the YA (Year of Assessment)." So for my first year in Singapore it looks like I would be considered non-resident because I haven't lived in Singapore previously, please can someone confirm that this is what it means?

So either way, if I am considered resident or non-resident, would I be eligible to make any other payments, or would my take home pay be income minus income tax? I don't believe that I would be eligible to pay CPF.

Thanks in advance for any help provided.

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sundaymorningstaple
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Re: Income tax etc in Singapore

Postby sundaymorningstaple » Sun, 03 Nov 2013 5:48 pm

IRAS will also compute based upon the 183 days straddling two consecutive years. Even if this happens after you have filed the YA for the previous years taxes. (This is based on the the EP being granted for at least a 12 month period).

http://www.iras.gov.sg/irasHome/page04.aspx?id=6140


IanE wrote:Hi all,

I am currently in discussions about moving to Singapore early in 2014 and I should be able to get a P1 Employment Pass. I plan to be in Singapore for at least a year.

I am currently looking into the finances and trying to work out what my take home pay would be after tax and any other deductions to work out if I can afford to move to Singapore or not.

I'm slightly confused about whether I would be considered tax resident or non-resident. It says on the IRAS website: "a foreigner who has stayed / worked in Singapore (excludes director of a company) for 183 days or more in the year before the YA (Year of Assessment)." So for my first year in Singapore it looks like I would be considered non-resident because I haven't lived in Singapore previously, please can someone confirm that this is what it means?

So either way, if I am considered resident or non-resident, would I be eligible to make any other payments, or would my take home pay be income minus income tax? I don't believe that I would be eligible to pay CPF.

Thanks in advance for any help provided.

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zzm9980
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Postby zzm9980 » Sun, 03 Nov 2013 5:50 pm

On a P1 pass you'll be a tax resident, so use that rate table.

Your take home pay is your full wages; taxes are not deducted here. Your taxes for the current year are assessed based on your previous year's income. So if you start in January, your bill won't come due until the middle of 2015. At that point, you can pay in full or take part in a payment scheme based on Giro where they will make monthly deductions from your bank account.

If by chance you're an American, you're supposed to make quarterly estimated tax payments to the IRS in the year preceding when you file taxes. So for 2014, you pay estimated taxes every quarter, then file by April 15th, 2015 to figure out if you paid enough or too much.

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PNGMK
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Postby PNGMK » Sun, 03 Nov 2013 7:54 pm

Keep track of your travel in and out of the country - you may qualify for a significant tax refund if you're on the road a lot and don't work here but use it is as a base. The regulars here poo-pooed me when I raised this but I saved $5000 on my last IRS bill.

http://www.iras.gov.sg/irasHome/page04.aspx?id=336

IanE
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Postby IanE » Mon, 04 Nov 2013 12:34 am

Thanks all for the advice, it is good to know that I will be considered a tax resident in Singapore.

I'm from the UK and I am being offered a bit less money for working in Singapore compared to what I currently earn in the UK. But if I pay a lot less tax etc in Singapore (as is the case) then my overall sum after deductions will be a lot higher and more than compensate for this.

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aster
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Postby aster » Thu, 28 Nov 2013 8:23 pm

IanE wrote:I'm from the UK and I am being offered a bit less money for working in Singapore compared to what I currently earn in the UK. But if I pay a lot less tax etc in Singapore (as is the case) then my overall sum after deductions will be a lot higher and more than compensate for this.


Apart from a salary that has been offered to you, do you have any extra allowances for accommodation and/or travel? Housing can be quite expensive here so please take this into account and look into it before agreeing on any potential move to Singapore. :)

IanE
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Postby IanE » Sat, 07 Dec 2013 12:03 am

aster wrote:
Apart from a salary that has been offered to you, do you have any extra allowances for accommodation and/or travel? Housing can be quite expensive here so please take this into account and look into it before agreeing on any potential move to Singapore. :)


Sorry I missed your response.

I am not getting any extra allowances, but I do realise that accommodation can be quite expensive in Singapore, but I live centrally in London, so it'll actually be cheaper for me in Singapore for the same accommodation if i live a bit further out. Also transport will be cheaper for me in Singapore too.


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