Foreign employees working in Singapore either on work permit or employment pass will be taxed as above in Singapore unless:
* The person is on short-term employment no exceeding 60 days in a calendar year
* his/her earnings are exempt from tax under the Avoidance of Double Taxation Agreement
As a tax resident, you will be taxed on all personal income derived in Singapore.
When a foreign employee stops his term of employment in Singapore, his employer is required to inform IRAS before the termination of employment or departure from Singapore. The employer shall also withhold whatever money due to the employee until tax clearance is given.
Fringe Benefits
Employer-provided fringe benefits are taxed in the employee's hands. As a number of benefits are taxed on a concessionary basis (e.g. housing) in Singapore, it is possible to reduce an individual's tax liability through appropriate structuring of his/her remuneration package.
Central Provident Fund (CPF)
Foreigners on work pass are exempt from CPF contributions in Singapore.
Double Taxation
Double taxation can be avoided or minimized by unilateral tax credits and double tax treaties, depending on the type of foreign source income and the source country. Only Singapore resident companies and individuals are entitled to claim such tax credits.
For more information on Singapore Company Formation, please visit http://www.rikvin.com
For more information on Singapore Accounting and Taxation for Foreigners Working in Singapore, please visit http://www.rikvinsingapore.com
