How is life as a doctor in Singapore?

Originally Posted by Unregistered

Does canada tax authority enforce on this kind of tax arrangement?

Singapore iras has recently busted many gps and anaethesiologists for tax avoidance. Corporate tax rate lower than personal income tax, so a number of Docs incorporate shell companies to avoid tax.

For example you are a locum u incorporate yourself as an company. And credit all locum dollars into this company. Then pay corporate tax rate. Then issue dividend from ur company to yourself which. Dividends are not taxable. So you essentially pay corporate tax rate which is lower than personal tax rate.

Same thing for anaesthesia when they render service they credit the income to their shell company, receive zero salary but takes dividend from the shell company instead

It is called a Professional corporation.

You need to register with the College in order to open a PC.

Yea all above board. It is not a shell company.

Google canada medical professional corporations

Originally Posted by Unregistered

Does canada tax authority enforce on this kind of tax arrangement?

Singapore iras has recently busted many gps and anaethesiologists for tax avoidance. Corporate tax rate lower than personal income tax, so a number of Docs incorporate shell companies to avoid tax.

For example you are a locum u incorporate yourself as an company. And credit all locum dollars into this company. Then pay corporate tax rate. Then issue dividend from ur company to yourself which. Dividends are not taxable. So you essentially pay corporate tax rate which is lower than personal tax rate.

Same thing for anaesthesia when they render service they credit the income to their shell company, receive zero salary but takes dividend from the shell company instead

Oh and to add dividends are taxable in canada. So whatever you pay yourself from the PC is taxable at personal income rates.

But what you dont need you keep in the PC and can invest through the PC.

Originally Posted by Unregistered

It is called a Professional corporation.

You need to register with the College in order to open a PC.

Yea all above board. It is not a shell company.

Google canada medical professional corporations

Thanks i just read it. So essentially because canada personal tax is high, it is better to keep earnings in the medical professional corporation (mpc) to enjoy a lower tax rate. And keep the cashflow for future business expenses. Only withdraw what you need minimally as salary or dividend. (Coz both salary or dividend is taxable at personal level)

On retirement, you can do controlled slow withdrawal over the years to make sure the personal tax bracket is not high.

The role of mpc is really to help doctors manage their clinic funds. It helps to encourage savings for retirement too indirectly since most of ur monies will be in the mpc.

Of course when u withdraw for personal use, u are still subjected to the tax

Thanks for sharing!

On the other hand singapore’s dividend are not taxable. So the point of companies is really to avoid personal income tax, enjoy lower corporate tax.

in summary canada mpc works as a deferred tax system (you eventually still got to pay ur personal taxes when you withdraw) while sg shell companies works as tax avoidance tool, (benefiting from marginal difference between sg corporate and personal tax, and tax free dividends)

Originally Posted by Unregistered

You mean nowadays cannot get jobs as gp? Can I check what speciality does sg actually need?(I.e which are the ones that there will be jobs available?)
Finally, can I check what is the timeline for getting full reg (from conditional) if you don't fail any posting. I see some of my seniors getting it in 2-3 years, some getting it only after 6-7 years.. (despite them being outstanding in their work, i.e got A for their posting, was nominated as best mo etc)

Thanks

Tbh this C.Reg is meant to level the field for IMGs and Local grads. They can use it as an excuse to keep you in the system for as the same length as if a local grad takes to finish his bond. Which is unfair when you look at the school fees you are paying and the school fees that they are paying.

I’m intending to specialise, so it really doesn’t bother me. I would see why people would find faults with it. Especially when it delays you from being able to enter private practice where you could potentially pull quite bit locuming

Originally Posted by Unregistered

Thanks i just read it. So essentially because canada personal tax is high, it is better to keep earnings in the medical professional corporation (mpc) to enjoy a lower tax rate. And keep the cashflow for future business expenses. Only withdraw what you need minimally as salary or dividend. (Coz both salary or dividend is taxable at personal level)

On retirement, you can do controlled slow withdrawal over the years to make sure the personal tax bracket is not high.

The role of mpc is really to help doctors manage their clinic funds. It helps to encourage savings for retirement too indirectly since most of ur monies will be in the mpc.

Of course when u withdraw for personal use, u are still subjected to the tax

Thanks for sharing!

On the other hand singapore’s dividend are not taxable. So the point of companies is really to avoid personal income tax, enjoy lower corporate tax.

in summary canada mpc works as a deferred tax system (you eventually still got to pay ur personal taxes when you withdraw) while sg shell companies works as tax avoidance tool, (benefiting from marginal difference between sg corporate and personal tax, and tax free dividends)

Singapore shell companies for physicians is very grey. And easily busted by IRAS.

In Singapore the income tax rates are already so low.

In Canada the rates are higher. Which is why we have things like RRSP as well. You can google that. Also TFSA. Tax deferred programs do save a lot because you can invest money that is not taxed yet which makes a substantial difference.

In Singapore it is tax evasion!

Originally Posted by Unregistered

Thanks i just read it. So essentially because canada personal tax is high, it is better to keep earnings in the medical professional corporation (mpc) to enjoy a lower tax rate. And keep the cashflow for future business expenses. Only withdraw what you need minimally as salary or dividend. (Coz both salary or dividend is taxable at personal level)

On retirement, you can do controlled slow withdrawal over the years to make sure the personal tax bracket is not high.

The role of mpc is really to help doctors manage their clinic funds. It helps to encourage savings for retirement too indirectly since most of ur monies will be in the mpc.

Of course when u withdraw for personal use, u are still subjected to the tax

Thanks for sharing!

On the other hand singapore’s dividend are not taxable. So the point of companies is really to avoid personal income tax, enjoy lower corporate tax.

in summary canada mpc works as a deferred tax system (you eventually still got to pay ur personal taxes when you withdraw) while sg shell companies works as tax avoidance tool, (benefiting from marginal difference between sg corporate and personal tax, and tax free dividends)

Google RRSP and TFSA as well.

In Canada personal income tax rates are high for high income earners.
Being able to defer tax makes substantial difference.

In Singapore income tax rates are some of the lowest in the world.

So those shell companies are strategies for tax evasion. Easily busted by IRAS

Originally Posted by Unregistered

Thanks i just read it. So essentially because canada personal tax is high, it is better to keep earnings in the medical professional corporation (mpc) to enjoy a lower tax rate. And keep the cashflow for future business expenses. Only withdraw what you need minimally as salary or dividend. (Coz both salary or dividend is taxable at personal level)

On retirement, you can do controlled slow withdrawal over the years to make sure the personal tax bracket is not high.

The role of mpc is really to help doctors manage their clinic funds. It helps to encourage savings for retirement too indirectly since most of ur monies will be in the mpc.

Of course when u withdraw for personal use, u are still subjected to the tax

Thanks for sharing!

On the other hand singapore’s dividend are not taxable. So the point of companies is really to avoid personal income tax, enjoy lower corporate tax.

in summary canada mpc works as a deferred tax system (you eventually still got to pay ur personal taxes when you withdraw) while sg shell companies works as tax avoidance tool, (benefiting from marginal difference between sg corporate and personal tax, and tax free dividends)

Google RRSP and TFSA as well.

In Canada personal income tax rates are high for high income earners.
Being able to defer tax makes substantial difference.

In Singapore income tax rates are some of the lowest in the world.

So those shell companies are strategies for tax evasion (not avoidance).

Originally Posted by Unregistered

Thanks i just read it. So essentially because canada personal tax is high, it is better to keep earnings in the medical professional corporation (mpc) to enjoy a lower tax rate. And keep the cashflow for future business expenses. Only withdraw what you need minimally as salary or dividend. (Coz both salary or dividend is taxable at personal level)

On retirement, you can do controlled slow withdrawal over the years to make sure the personal tax bracket is not high.

The role of mpc is really to help doctors manage their clinic funds. It helps to encourage savings for retirement too indirectly since most of ur monies will be in the mpc.

Of course when u withdraw for personal use, u are still subjected to the tax

Thanks for sharing!

On the other hand singapore’s dividend are not taxable. So the point of companies is really to avoid personal income tax, enjoy lower corporate tax.

in summary canada mpc works as a deferred tax system (you eventually still got to pay ur personal taxes when you withdraw) while sg shell companies works as tax avoidance tool, (benefiting from marginal difference between sg corporate and personal tax, and tax free dividends)

Sg shell companies is for tax evasion not avoidance.

Tax rate already so low in Singapore.

Originally Posted by Unregistered

In canada healthcare is universal.

Blood tests and imaging is all covered.

So many of these PRCs and HKs will say they want this and that test demand to see specialist.

It gets so ridiculous that they want ultrasound and CTscan even if they have NO symptoms.

Like buffet mentality.

They also do not respect doctors.

I doubt this is unique to patients from HK / PRCs.

In any "free" healthcare system, there will be those who will inadvertently abuse it, even the "locals" who live off welfare.

Originally Posted by Unregistered

I doubt this is unique to patients from HK / PRCs.

In any "free" healthcare system, there will be those who will inadvertently abuse it, even the "locals" who live off welfare.

Need to have a civilised people to have free healthcare.
The people need to understand about collective good, and not abuse the system
It is a safety net if people do not abuse it

Unfortunately Most Asians have not reach that level of civil mindedness and hence will abuse free healthcare as we are greedy