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Topic Review (Newest First)
30-11-2021 07:44 PM
Unregistered
Quote:
Originally Posted by Unregistered View Post
Thanks for the information, I needed that.
Ask your company
24-03-2021 01:15 AM
Unregistered Thanks for the information, I needed that.
07-02-2021 04:51 PM
lazyplane
Quote:
Originally Posted by Unregistered View Post
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. "

Ah - yes, i agree. So the scenario being referred here is
Non singaporean but getting singaporean income tax rates AND getting singapore full employer CPF and ee CPF contribution.
And the concept that the take home pay by the non singaporean is "higher"

Got it and that part - i agree. There should be more dis-incentive for non resident singaporean in terms of income tax..but i guess there are also treaties to take into account etc etc.


if anyone really wants to compare all the benefits , maybe refer to the government sponsored webpage :

https://www.guidemesingapore.com/bus...-and-drawbacks
06-02-2021 11:27 PM
Unregistered
Quote:
Originally Posted by lazyplane View Post
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.
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. "
06-02-2021 10:34 PM
Unregistered
Quote:
Originally Posted by Midlifemgr View Post
When comparing gross salaries across websites, friends, colleagues etc I realise that some companies do payout portion of the cpf to foreigners as gross salary.

Eg is $5000 salary gross for SG, foreigner gets $5850 ($850 from employer contributed cpf equivalent)
Same goes for bonus.

How common is this practice? I think only finance industry practices this. What about others?

Does your company practice this?
Quite common, that's how many of them even as fresh grads can afford to rent condo units at 4-5k gross.
06-02-2021 09:35 PM
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.
22-01-2021 04:16 PM
Unregistered
Quote:
Originally Posted by Unregistered View Post
This is correct. Cause foreigner don't have cpf.
Which alot of Singaporean don't realise so they will claim that they only take home nett 4k after 20% employee cpf contribution while their foreigner take home 5850.

Alot of Singaporean are clueless.. But both are earning gross 5k exactly the same.
Only difference is Singapore gahmen don't let you use 37% if your gross and force you to save...
Yep. Another way of looking at it is both also earn 5850..
But only Singaporean see it that their salary is 4k
22-01-2021 04:14 PM
Unregistered
Quote:
Originally Posted by Midlifemgr View Post
When comparing gross salaries across websites, friends, colleagues etc I realise that some companies do payout portion of the cpf to foreigners as gross salary.

Eg is $5000 salary gross for SG, foreigner gets $5850 ($850 from employer contributed cpf equivalent)
Same goes for bonus.

How common is this practice? I think only finance industry practices this. What about others?

Does your company practice this?
This is correct. Cause foreigner don't have cpf.
Which alot of Singaporean don't realise so they will claim that they only take home nett 4k after 20% employee cpf contribution while their foreigner take home 5850.

Alot of Singaporean are clueless.. But both are earning gross 5k exactly the same.
Only difference is Singapore gahmen don't let you use 37% if your gross and force you to save...
22-01-2021 02:41 PM
Midlifemgr
Which companies pay cpf portion to foreigners?

When comparing gross salaries across websites, friends, colleagues etc I realise that some companies do payout portion of the cpf to foreigners as gross salary.

Eg is $5000 salary gross for SG, foreigner gets $5850 ($850 from employer contributed cpf equivalent)
Same goes for bonus.

How common is this practice? I think only finance industry practices this. What about others?

Does your company practice this?

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