Quote:
Originally Posted by lazyplane
While it is true that the foreigner may have "higher" take home, pls also note that they will taxed at a very much higher income tax rate ie at least at min 15% or the singaporean tax rate *depending on the amount of income earned.
But if the company also pay for the tax expense, accommodation , kids education, then of course it is a very good deal for foreigner. This is true for most higher management position.
But to be fair, this is also the case for singaporeans working overseas that are doing management appointments.
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The minimum 15% tax rate applies only if the foreigner works in Singapore for less than 183 days. A "non-tax resident" is quite different from a non-PR.
Here's the definition of a tax resident from IRAS:
" Income tax rates depend on an individual's tax residency status. You will be treated as a tax resident for a particular Year of Assessment (YA) if you are a:
Singapore Citizen (SC) or Singapore Permanent Resident (SPR) who resides in Singapore except for temporary absences; or
Foreigner who has stayed / worked in Singapore (excludes director of a company) for 183 days or more in the year preceding the YA.
Otherwise, you will be treated as a non-resident of Singapore for tax purposes. "