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Income Tax

Posted: 24th Feb, '09, 14:17
by Rosbif71
why does Singapore have this stupid non-resident tax system.

as far as I can see it I will get completely shatfed for tax because I've only been here a few months, whereas my colleagues will pay very little as they've been here 9 months [smilie=23_3.gif]

Re: Income Tax

Posted: 24th Feb, '09, 14:26
by Burbage
Pay me or go to Gaol!
Pay me my money down.

Re: Income Tax

Posted: 24th Feb, '09, 14:32
by BoD
At least you are not trapped in the country because your ex-companys' HR staff haven't pulled the collective fingers from their collective arses and applied for tax clearance

15% isn't that bad in the big scheme of things

Re: Income Tax

Posted: 24th Feb, '09, 14:41
by Rosbif71
BoD wrote:At least you are not trapped in the country because your ex-companys' HR staff haven't pulled the collective fingers from their collective arses and applied for tax clearance

15% isn't that bad in the big scheme of things
it is compared to what others are paying.
I will be paying thousands compared to hundreds that my colleagues will pay. yet I have been here a short time and therefore only using the services here for a shorter time. doesnt make sense

Re: Income Tax

Posted: 24th Feb, '09, 14:55
by baloo
Income tax in Singapore is not something I've ever heard anyone complain about before.

Re: Income Tax

Posted: 24th Feb, '09, 15:02
by slinky
If you want something to complain about regarding taxes, try having to pay it in 2 countries......;)

Seriously, how much would you have had to pay back in the UK? (am I right that you are from the UK?) I'm sure it's quite a bit less here.

Re: Income Tax

Posted: 24th Feb, '09, 15:14
by Rosbif71
but just moved from Dubai where I didnt pay any!

A flat rate of 15pct doesnt make sense. why should someone who has only been here a few months pay vastly more than someone who has been here over 183 days?

Re: Income Tax

Posted: 24th Feb, '09, 15:47
by Spike
Rosbif71 wrote:but just moved from Dubai where I didnt pay any!

A flat rate of 15pct doesnt make sense. why should someone who has only been here a few months pay vastly more than someone who has been here over 183 days?
It will be put right in your next assessment. You will get a refund if you've overpaid. Don't panic!

Re: Income Tax

Posted: 24th Feb, '09, 15:48
by expat yorkshire
But if you have only been her a few months there cant be that much chargeable income.

Re: Income Tax

Posted: 24th Feb, '09, 16:20
by Rosbif71
expat yorkshire wrote:But if you have only been her a few months there cant be that much chargeable income.
if I understand it correctly all income is chargable if you have been here less than 183 days
there are no allowances as apply if you have been here over 183 days

Re: Income Tax

Posted: 24th Feb, '09, 16:21
by Rosbif71
Spike wrote:
Rosbif71 wrote:but just moved from Dubai where I didnt pay any!

A flat rate of 15pct doesnt make sense. why should someone who has only been here a few months pay vastly more than someone who has been here over 183 days?
It will be put right in your next assessment. You will get a refund if you've overpaid. Don't panic!
but that only applies if I am still here by the next tax assesment.
which I am really not sure about

Re: Income Tax

Posted: 24th Feb, '09, 17:20
by BoD
You pay 15% or normal resident rates, whichever is highest. So, yes, unless you are earning a lot, then you will pay more than a resident, but the more your earn the smaller the difference will be. For your colleagues to pay no tax after 9 months their salaries will need to be less than the bottom tax bracket ( 30k I think)

Re: Income Tax

Posted: 24th Feb, '09, 18:18
by Dinosaur
I thought the Singapore tax system was great - yes much much less than the UK - was something like 40 percent income tax when we were there. I always liked that note at the bottom of the IRAS tax statement which said something like Thank You for your contribution to nation building. I mean it doesn't cost anything to be polite does it. Now when did Gordy Brown last thank anyone in the UK?

Re: Income Tax

Posted: 24th Feb, '09, 22:00
by Fat Bob
Rosbif, you're being rather petulent. The tax system here is far superior to most other tax systems in the world. I'm sure you knew this before you arrived, and hey, you took the job and got paid the money.

Re: Income Tax

Posted: 24th Feb, '09, 22:41
by Lichtgestalt
Fat Bob wrote:Rosbif, you're being rather petulent. The tax system here is far superior to most other tax systems in the world. I'm sure you knew this before you arrived, and hey, you took the job and got paid the money.
..... and if you don't like it you can take a cab to Changi....

Re: Income Tax

Posted: 24th Feb, '09, 23:15
by BoD
no I can't ( and I don't like it )

Re: Income Tax

Posted: 25th Feb, '09, 00:22
by Lichtgestalt
Just thought that FB had forgotten to mention it....

Re: Income Tax

Posted: 25th Feb, '09, 07:34
by Tas
Singapore tax system is great!! I miss it !! Any anyways, most countries have some sort of resident vs non resident set up, so I wouldn't be singling out Singapore - at least it's clear.

Rosbif, you're getting bummed out far too soon. I paid the 15% because of when I landed and tax time due I was just under by a bit- it was hardly anything compared to Australia. And then I didn't pay tax for a long time. Because the entirely fair system then offset that original amount each year from my residental tax owed because I'd been there longer than the 183 cumulative days. And any left at the end of the time when I left got refunded. Singapore - tax system is one of the last things to complain about.

Re: Income Tax

Posted: 25th Feb, '09, 07:47
by Fat Bob
BoD wrote:no I can't ( and I don't like it )
Your situation is different and has nothing to do with the tax people. I take it you have official leaving dates etc? You company should withhold all the you last pay cheques after the announcement for you to leave. 28 days after the last day, they should pay you, whether they have cleared your tax or not. It is the company's responsibility to clear your tax, not yours. Get a lawyer involved if you can be arsed.

Re: Income Tax

Posted: 25th Feb, '09, 08:03
by BoD
Where does that 28 day number come from?

Re: Income Tax

Posted: 25th Feb, '09, 08:12
by Fat Bob
Hmmmmm....it was thre case a couple of years ago when I changed employers, but a quc squizz through the IRAS website and I can't find it. So may have changed the rules.

Are there such things as employment lawyers in Singapore?

Re: Income Tax

Posted: 25th Feb, '09, 09:56
by Rosbif71
you have to allow me something to rant about here! not much else I've come across.

Re: Income Tax

Posted: 25th Feb, '09, 12:34
by canuck
taxis anyone? :D

oh hey did ya hear they are probably dropping the prices

Re: Income Tax

Posted: 25th Feb, '09, 13:04
by Rosbif71
canuck wrote:taxis anyone? :D

oh hey did ya hear they are probably dropping the prices
can't complain about taxis after lving in Dubai
If you order one it might turn up 1 hour late if it turns up at all. ended up walking home about 5-7km in 40+ heat one day after waiting over 1 hour to get one in the street. Singapore taxis are a pleasure after that

Re: Income Tax

Posted: 25th Feb, '09, 13:20
by sundaymorningstaple
Fat Bob wrote:
BoD wrote:no I can't ( and I don't like it )
Your situation is different and has nothing to do with the tax people. I take it you have official leaving dates etc? You company should withhold all the you last pay cheques after the announcement for you to leave. 28 days after the last day, they should pay you, whether they have cleared your tax or not. It is the company's responsibility to clear your tax, not yours. Get a lawyer involved if you can be arsed.
Here's what they need. This taken from the Notes for the IR-21 (Tax Clearance form):
GENERAL
1 The Form IR21 and Appendix 1/2/3 (if applicable) must be completed and signed by the company secretary/director, precedent partner, sole-proprietor, manager, honorary secretary/treasurer, representative of a non-resident company or a person authorised by the employer, as the case may be. The name and designation of the authorised person and contact number must be given.

2 If you are e-filing Form IR 21, please refer to the online help at myTax Portal. For the paper Form IR21, please write in black ink
and use the format DD/MM/YY for dates. Enter ‘NA’ for items that are not applicable.
3 Complete this form at least one month before your non-citizen employee ceases employment with you in Singapore (including
posting to an overseas location) or plans to leave Singapore for more than 3 months. If you are not able to give one month’s notice, state
reason in Section D, item 15 of Form IR21. Unless the Comptroller accepts shorter notice, employers who fail to comply may be liable to a
fine not exceeding $1,000.
4 You are also required to withhold any monies (including overtime pay, leave pay, allowances for transport, entertainment, gratuities
and lump sum payments, etc.) due to your employee from the day he notifies you of his intention to cease employment or when you decide
to terminate the employment or post the employee to an overseas location. If you are unable to withhold monies, state reason in Section D,
item 20. If an employer fails to comply and does not give valid reasons, he may be held liable for the tax that is owing by the employee.
5 Do not release any monies to the employee until tax clearance is given or 30 days after the Comptroller has been notified through
the Form IR21, whichever is earlier.