Singapore – Taxation of international executives - KPMG Global

For employment income, tax is charged at a flat rate of 15 percent or at the resident rates, whichever is higher. Other income of a non-resident individual is ... close Sharewithyourfriends KPMGPersonalization GetthelatestKPMGthoughtleadershipdirectlytoyourindividualpersonalizeddashboard Registernow Login Singapore–Taxationofinternationalexecutives Taxationofinternationalexecutives Taxationofinternationalexecutives Share 1000 Save Gotobottomofpage Share close Home › Insights › Singapore–Taxationofinternationalexecutives January2021  OverviewandIntroduction | IncomeTax |  Specialconsiderationsforshort-termassignments |  Othertaxesandlevies  |  Immigration    OverviewandIntroduction SingaporeincometaxisimposedonaterritorialbasiswherebytheindividualisgenerallytaxedonallincomeaccruinginorderivedfromSingapore.Foreign-sourcedincomereceivedinSingaporebyresidentindividualsisexemptfromtaxunlesstheincomeisreceivedthroughapartnershipinSingapore. Thetaxassessmentyearisthecalendaryearandthetaxchargedforeachyearofassessmentisbasedontheincomeaccrued/derivedinthecalendaryearprecedingtheyearofassessment. TheofficialcurrencyofSingaporeistheSingaporeDollar(SGD). Herein,thehostcountry/jurisdictionreferstothecountry/jurisdictiontowhichtheemployeeisassigned.Thehomecountry/jurisdictionreferstothecountry/jurisdictionwheretheassignedliveswhentheyarenotonassignment. Backtotop    IncomeTax Taxreturnsandcompliance Taxrates Residencerules Terminationofresidence Economicemployerapproach Typesoftaxablecompensation Tax-exemptincome Expatriateconcessions Salaryearnedfromworkingabroad Taxationofinvestmentincomeandcapitalgains Additionalcapitalgainstax(CGT)issuesandexceptions Generaldeductionsfromincome Taxreimbursementmethods Calculationofestimates/prepayments/withholding Reliefforforeigntaxes Generaltaxcredits Sampletaxcalculation AllincometaxinformationisbasedontheSingaporeIncomeTaxAct(chapter134)andtheprevailingpracticesoftheInlandRevenueAuthorityofSingapore. Taxreturnsandcompliance Whenaretaxreturnsdue?Thatis,whatisthetaxreturnduedate? 15April. Whatisthetaxyear-end? 31December.TheSingaporetaxyearrunsfrom1Januaryto31Decemberannually.ThetaxchargedforaparticularYearofAssessment(“YA”)isbasedonincomeaccrued/derivedinthecalendaryearprecedingthatYA. WhatarethecompliancerequirementsfortaxreturnsinSingapore? Individualswillreceivealetter,taxreturn(FormB/B1/M)ortextmessagefromtheInlandRevenueAuthorityofSingapore(IRAS)inFebruary/Marchofeachyear,requestingthemtofiletheirtaxreturnseitherelectronically(by18April)orviapaperfiling(by15April). EmploymentincomedetailsaregenerallysubmittedtotheIRASbyemployerselectronically,soindividualswhoreceiveonlyemploymentincomemayalsoreceivealetterortextmessagefromtheIRASinformingthemthattheyhavebeenselectedforNoFilingService,whereupontheyneednotfileataxreturnunlesstheywishtodosotoreportadditionalsourcesofincomeoramendtheirpersonalreliefclaims. Assessmentsaremadebywayofnoticesofassessment.Thetaxisnormallydueforpaymentwithin1monthfromthedateofissueofthenoticeofassessment. Taxrates Whatarethecurrentincometaxratesforresidentsandnon-residentsinSingapore? Residents Incometaxiscalculatedbyapplyingaprogressivetaxratescheduletochargeableincomeasfollows. IncometaxtablefromtheYA2017,inSingaporedollars(SGD) ChargeableIncome IncomeTaxRate(%) GrossTaxPayable(SGD) First 20,000Next10,000 02 0200 First30,000Next10,000 -3.50 200350 First40,000Next40,000 -7 5502,800 First80,000Next40,000 -11.5 3,3504,600 First120,000Next40,000 -15 7,9506,000 First 160,000Next40,000 -18 13,9507,200 First 200,000Next40,000 -19 21,1507,600 First240,000Next40,000 -19.5 28,7507,800 First 280,000Next40,000 -20 36,5508,000 First320,000Inexcessof320,000 -22 44,550 Non-residents Anon-residentindividualisgenerallysubjecttotaxatflatrates,dependingonthetypeofincome.Foremploymentincome,taxischargedataflatrateof15percentorattheresidentrates,whicheverishigher.Otherincomeofanon-residentindividualisgenerallytaxedat22percentunlessspecificallyexemptorsubjecttoareducedrate(suchas,taxtreaty). Residencerules Forthepurposesoftaxation,howisanindividualdefinedasaresidentofSingapore? AnindividualisregardedasresidentinSingaporeforaYAif,intheyearprecedingthatYA,theyresideinSingapore,isphysicallypresentorexercisesanemployment(otherthanasadirectorofacompany)inSingaporefor183daysormore. Underthe3-yearadministrativeconcession,anindividualwillbeconsideredaresidentfromtheyearofarrivalinSingaporeiftheirstaystraddles3consecutiveyearsormore,notwithstandingthatthe183daystestmaynothavebeenmeteitherinthefirstorfinalyearofemployment. Underthe2-yearadministrativeconcession,aforeignemployeewhoexercisesemploymentinSingaporeforacontinuousperiodofatleast183daysstraddling2yearswouldbetreatedasaresidentofSingaporeforbothyears. Isthereademinimusnumberofdaysrulewhenitcomestoresidencystartandenddate?Forexample,ataxpayercan’tcomebacktothehostcountry/jurisdictionformorethan10daysaftertheirassignmentisoverandtheyrepatriate. No.Iftheindividualisaresident,theywouldberegardedasaresidentfortheentireyearandthereisnodeminimusnumberofdaysthatwillexempttheindividualfromtaxforthatyear. Iftheindividualisanon-residentintheyearconcernedandtheyexerciseanemployment(otherthanasacompanydirector)inSingaporefornotmorethan60daysinacalendaryear,theyareexemptfromtaxonincomearisingfromthatshort-termemployment. Whatiftheassigneeentersthecountry/jurisdictionbeforetheirassignmentbegins? AnassigneemayarriveinSingaporebeforethestartoftheirassignmentforseveralreasonssuchassearchingforaccommodation,makingpersonalarrangements,andsoon.WhethertheywillbetreatedasaresidentofSingaporewillgenerallydependonthenumberofdays,theyarephysicallypresentorexercisingemploymentinSingapore. However,itisimportanttonotethattheyarenotpermittedtoengageinanyformofbusiness,profession,occupationorpaidemploymentduringthisinterimperiod,iftheyhavenotobtainedavalidemploymentpass. Terminationofresidence ArethereanytaxcompliancerequirementswhenleavingSingapore? AnemployerisrequiredtoseektaxclearancebynotifyingtheIRASifanon-citizenemployee(includingaSingaporePermanentResidentwhoisleavingSingaporepermanently)leavesSingaporeforacontinuousperiodexceeding3months,ceasesorisabouttoceaseemploymentinSingapore.Inaddition,theemployerisrequiredtowithholdallmoniesduetotheemployeeforclearanceoftheemployee’soutstandingtaxliability.Thenotificationmustbelodgednolaterthan1monthbeforetheemployee’scessationoftheemploymentordateofdeparturefromSingapore,whicheverisearlier.TheemployercanonlyreleasethemonieswithheldtotheemployeeuponreceivingpermissionfromtheIRASoruntil30daysafternotificationoftheemploymentcessationwasmade,whicheverisearlier. Underthedeemedexerciserule,thenon-citizenemployeeisdeemedtohavederivedafinalgaininrespectofunexercisedstockoptionsand/orunvested/restrictedemployeestockownershipplanshareswhentaxclearanceissought.Anexceptionwouldbeiftheemployerisontrackingoption,wheretheemployerwilltracktheincomerealizationeventtoreporttotheIRAS. Asanadministrativeconcession,anindividualmayapplyforareassessmentofthistaxliabilitywithin4yearsfromtheYAfollowingtheyearinwhichthedeemedexerciseruleapplies,iftheactualgainatdateofexercise/vestingislowerthanthedeemedtaxablegain. Whatiftheassigneecomesbackforatripafterresidencyhasterminated? Iftheassigneecomesbackforbusinesspurposes,anyincomeattributabletotheirbusinesspresencemaybesubjecttotaxinSingapore,dependingontheirtaxresidencyandtheperiodofemploymentexercised.Indeterminingthetaxresidencyandperiodofemploymentexercised,thetimespentinSingaporethroughoutthecalendaryearwouldbeconsidered. Communicationbetweenimmigrationandtaxationauthorities DotheimmigrationauthoritiesinSingaporeprovideinformationtothelocaltaxationauthoritiesregardingwhenapersonentersorleavesSingapore? Yes.Ingeneral,theimmigrationauthoritieswouldshareinformationrelatingtotheapplication /cancellationofworkpasseswiththeIRAS. Willanassigneehaveafilingrequirementinthehostcountry/jurisdictionaftertheyleavethecountry/jurisdictionandrepatriate? Generally,non-citizenemployeeswhohavecompletedtheirtaxclearanceprocesswiththefilingofFormIR21willnothaveafilingrequirementinSingaporeaftertheyrepatriate. However,iftheysubsequentlyreceiveincomethatisrelatedtotheirformerSingaporeassignment(suchas,bonusthatispaidaftertheirdeparture)andnotpreviouslyreportedtothetaxauthorities,additionaltaxclearanceisrequired. Economicemployerapproach DothetaxationauthoritiesinSingaporeadopttheeconomicemployerapproachtointerpretingArticle15oftheOrganisationforEconomicCo-operationandDevelopment(OECD)treaty?Ifno,arethetaxationauthoritiesinSingaporeconsideringtheadoptionofthisinterpretationofeconomicemployerinthefuture?1 BasedontheIRAS’scurrentpractice,theeconomicemployerapproachhasnotbeenadoptedasofyet.ThereisnoindicationastowhethertheIRASwouldadoptthisapproachinthefuture. Arethereademinimusnumberofdaysbeforethelocaltaxationauthoritieswillapplytheeconomicemployerapproach?Ifyes,whatisthedeminimusnumberofdays? Notapplicable.TheIRAShasnotadoptedtheeconomicemployerapproach. Typesoftaxablecompensation Whatcategoriesaresubjecttoincometaxingeneralsituations? EmploymentincomeorprofitsforemploymentservicesrenderedinSingaporearetaxableregardlessofwhomorwheretheemployermaybeor,towhom(orwhere)theemploymentincomemaybepaid. Typicalitemsofanexpatriatecompensationpackage,suchasthefollowing,aretaxableunlessotherwiseindicated. Salary,wages,bonusesandallowances. Benefits-in-kindsuchashousing/hotelaccommodation,homeleavepassages,motorcarbenefit,insurancepremiumsforpersonalinsuranceandcertaingroupinsurancepolicies,certaininterest-freeloansetc. Iftheemployerbearsthecostoftaxfortheemployee,thisisregardedasataxablebenefitandiscomputedonatax-on-taxbasis. Anygainorprofitderived(directlyorindirectly)byanypersonbytheexercise,assignment,release,oracquisitionofarightorbenefittoacquiresharesinacompanyisincomeiftherightorbenefitisobtainedbythembyreasonoftheirofficeoremploymentinSingapore. Contributionsmadebytheemployertooverseaspensionandprovidentfundsinconnectionwiththeemployee’semploymentinSingaporearegenerallydeemedtaxableincomeoftheemployee,unlesscertainconditionsaresatisfied. Asaconcession,medicalexpensespaidonbehalfofanemployee,theirspouse,andchildrenaregenerallynottaxableifthebenefitisavailabletoallstaff. Intra-groupstatutorydirectors Willanon-residentofSingaporewho,aspartoftheiremploymentwithinagroupcompany,isalsoappointedasastatutorydirector(i.e.memberoftheBoardofDirectorsinagroupcompanysituatedinSingaporetriggerapersonaltaxliabilityinSingapore,eventhoughnoseparatedirector'sfee/remunerationispaidfortheirdutiesasaboardmember? a) WillthetaxationbetriggeredirrespectiveofwhetherornottheboardmemberisphysicallypresentattheboardmeetingsinSingapore? Generally,director’sfeesaresourcedinthecountry/jurisdictionwherethecompanyisresident.Wheredirector’sfeesarepaidbyaSingaporeresidentcompany,theboardmemberwillbeliabletotaxinSingapore,eventhoughtheymaynotbephysicallypresentattheboardmeetingsinSingapore.Wheretherearenodirector’sfees/remunerationpaidforthedutiesasaboardmember,therewillbenotaxationtriggered. b) Willtheanswerbedifferentifthecostdirectlyorindirectlyischargedto/allocatedtothecompanysituatedinSingapore(i.e.asageneralmanagementfeewherethedutiesrenderedasaboardmemberisincluded)? No. c) Inthecasethatataxliabilityistriggered,howwillthetaxableincomebedetermined? N.A. Tax-exemptincome ArethereanyareasofincomethatareexemptfromtaxationinSingapore?Ifso,pleaseprovideageneraldefinitionoftheseareas. Exemptionofinterestincome InterestincomederivedbyanyindividualfromdepositswithanapprovedbankorafinancecompanylicensedundertheFinanceCompaniesActinSingapore,isexemptfromtax. Interestfromdebtsecuritiesandincomefromcertainannuities,lifeinsurancepolicies,distributionsfromcertaincollectiveinvestmentschemes,feeorcompensatorypaymentsfromsecuritieslendingorrepurchasearrangements,derivedfromSingapore. However,iftheinterestincomeisderivedthroughapartnershipinSingaporeorisderivedfromthecarryingonofatrade,businessorprofession,suchincomeistaxable. Remittancesofoffshorefunds AlloverseasincomeremittedbyindividualsresidentinSingaporeisnottaxable.However,thisexemptiondoesnotapplyiftheforeign-sourcedincomewasreceivedthroughapartnershipinSingapore. Doubletaxationagreement AnAvoidanceofDoubleTaxationAgreement(DTA)betweenSingaporeandanothercountry/jurisdictionservestopreventdoubletaxationofincomeearnedinonecountry/jurisdictionbyaresidentoftheothercountry/jurisdiction. Capitalgainstax ThereisnocapitalgainstaxinSingapore. Expatriateconcessions ArethereanyconcessionsmadeforexpatriatesinSingapore? ConcessionsareavailableundertheNotOrdinarilyResident(NOR)TaxpayerScheme.Thisscheme,however,willbeabolishedafter2019.ResidentswhohavebeengrantedtheNORstatuspriortoyear2020willnotbeaffected. Salaryearnedfromworkingabroad IssalaryearnedfromworkingabroadtaxedinSingapore?Ifso,how? InSingapore,taxispayableonanindividual’sremunerationthatisderivedfromSingaporeemploymentirrespectiveofwherethecontractismade,ortheremunerationispaid.ThetermSingaporeemploymentincludesnotonlytheexerciseofemploymentinSingaporebutalsotheexerciseofemploymentoutsideSingaporewheretheservicesperformedoutsideSingaporeisconsideredanextensionofthedutiesandresponsibilitiesoftheiremploymentinSingapore. Ontheotherhand,wheretheindividualisemployedtoperformservicesentirelyoutsideSingapore(e.g.theyaresentonanoverseasassignment),theremunerationisnotsubjecttoSingaporeincometax. Taxationofinvestmentincomeandcapitalgains AreinvestmentincomeandcapitalgainstaxedinSingapore?Ifso,how? Dividends,interest,andrentalincome Anyinterestincomederivedbyanyindividualfromthedepositofmonieswithanapprovedbankoralicensedfinancecompanywouldbetaxexempt.Anyinterestbyanyindividualfromdebtsecuritiesderivedisalsoexemptfromtax. DividendspaidbySingapore-residentcompanieswouldbetaxedundertheone-tiercorporatetaxationsystemandareexemptfromtaxinthehandsoftheshareholders. Theone-tiersystemisnotapplicabletoco-operatives. RentalincomederivedinrespectofpropertylocatedinSingaporeistaxable. Capitalgainsandlosses ThereisnocapitalgainstaxinSingapore.Accordingly,anygainsderivedfromthesaleofinvestmentsaregenerallycapitalinnature,andhencenottaxableunlesstheindividualbuysandsellsshares/propertiessofrequentlythatheisviewedtobedealingortradinginshares/properties.Ontheotherhand,capitallossesaregenerallynotdeductible.  Foreignexchangegainsandlosses Foreignexchangegainsandlossesareneithertaxablenordeductible. Principalresidencegainsandlosses Principalresidencegainsandlossesaregenerallycapitalinnatureandareneithertaxablenordeductiblerespectively. Personaluseitems Anycapitalgainsorlossesfromthesaleofpersonaluseitemsarenottaxable/deductible. Gifts TherearenogifttaxesinSingapore. However,gifts(cashandnon-cash)fromemployersaretaxablebenefits-in-kind.UndertheadministrativeconcessiongrantedbytheIRAS,giftsgivenonfestiveandspecialoccasionswhicharenotsubstantialinvalue(SGD200orlessperoccasion)andgenerallyavailabletoallstaffarenottaxable. Additionalcapitalgainstax(CGT)issuesandexceptions Arethereadditionalcapitalgainstax(CGT)issuesinSingapore?Ifso,pleasediscuss? CapitalgainsarenottaxableinSingaporeunlesstheindividualisregardedasadealerortrader. AretherecapitalgainstaxexceptionsinSingapore?Ifso,pleasediscuss? CapitalgainsarenottaxableinSingaporeunlesstheindividualisregardedasadealerortrader. Pre-CGTassets CapitalgainsarenottaxableinSingaporeunlesstheindividualisregardedasadealerortrader. Deemeddisposalandacquisition CapitalgainsarenottaxableinSingaporeunlesstheindividualisregardedasadealerortrader. Generaldeductionsfromincome WhatarethegeneraldeductionsfromincomeallowedinSingapore? Expensesaretaxdeductibleonlyiftheyarewhollyandexclusivelyincurredintheproductionoftheincome,arenotcapitalinnatureandtheirdeductionisnotprohibitedbystatute.Ingeneral,thereareveryfewdeductionsthatcanbeclaimedagainstemploymentincome. Personalreliefs,givenasdeductionsagainstincome,areavailabletoaresidentindividualdependingontheirpersonalcircumstancesintheyearprecedingtheYA. FromYA2019,thetotalamountofpersonalincometaxreliefswhichcanbeallowedissubjecttoacapofSGD80,000perYA. SomeofthepersonalreliefsapplicablefortheYA2020aresummarizedasfollows.   SGD Earnedincomerelief   Undertheageof55 Upto1,000 55toage59 Upto6,000 Age60andabove Upto8,000 Spouserelief   Spouselivingwithormaintainedbytaxpayerandspouse'sincomeisnotmorethanSGD4,000 2,000 Childrelief   UnmarriedchildanddoesnothaveincomeofmorethanSGD4,000 4,000 Parentrelief*   Livingwithtaxpayerinthesamehousehold(eachparent) 9,000 Notlivingwithtaxpayerinthesamehousehold(eachparent) 5,500 SupplementaryRetirementScheme(SRS) Cappedat35,700forforeigners *Parentreliefmaybesharedwithotherclaimantsprovidednooneelseisclaiminganyotherrelief(exceptGrandparentCaregiverRelief)onthesamedependent. Anon-residentindividualisnotentitledtopersonalreliefs. Taxreimbursementmethods WhatarethetaxreimbursementmethodsgenerallyusedbyemployersinSingapore? Thecommonmethodsofrecognizingtaxreimbursementspaidbytheemployer: Currentyearfullgross-up. Currentyearpartialgross-up. One-yearrollover. Calculationofestimates/prepayments/withholding Howareestimates/prepayments/withholdingoftaxhandledinSingapore?Forexample,Pay-As-You-Earn(PAYE),Pay-As-You-Go(PAYG),andsoon. Anexpatriateemployee’sremunerationfromSingaporeemploymentisgenerallynotsubjecttoincometaxwithholding. Pay-as-you-go(PAYG)withholding Notapplicable. PAYGinstallments Notapplicable. Whenareestimates/prepayments/withholdingoftaxdueinSingapore?Forexample:monthly,annually,both,andsoon. Notapplicable. Reliefforforeigntaxes IsthereanyReliefforForeignTaxesinSingapore?Forexample,aforeigntaxcredit(FTC)system,doubletaxationtreaties,andsoon? WhereanemployeesufferedtaxesinSingaporeandintheforeignjurisdictionfortheincomereceivedinrespectoftheirservicesphysicallyrenderedinthatjurisdiction,foreigntaxcredit(DoubleTaxRelief(forcountries/jurisdictionswhichhaveconcludedDoubleTaxationAgreements(DTAs)withSingapore)orUnilateralTaxCredit(forcountries/jurisdictionsthatdonothaveDTAswithSingapore)maybegranted,providedcertainconditionsaremet. Generaltaxcredits WhatarethegeneraltaxcreditsthatmaybeclaimedinSingapore?Pleaselistbelow. Seeabove. Sampletaxcalculation ThiscalculationassumesamarriedtaxpayerresidentinSingaporewithtwochildrenwhose 3-yearassignmentbegins1January2017andends31December2019.Thetaxpayer’sbasesalaryis100,000USdollars(USD)andthecalculationcovers3years.   2017USD 2018USD 2019USD Salary 100,000 100,000 100,000 Bonus 20,000 20,000 20,000 Cost-of-livingallowance 10,000 10,000 10,000 Housingallowance 12,000 12,000 12,000 Companycar Seeotherassumptions Seeotherassumptions Seeotherassumptions Movingexpensereimbursement 20,000 0 20,000 Homeleave 5,000 5,000 5,000 Educationallowance 3,000 3,000 3,000 Interestincomefromnon-localsources 6,000 6,000 6,000 Exchangerateusedforcalculation:USD1.00=SGD1.37. Otherassumptions Allearnedincomeisattributabletolocalsources. Bonusesarepaidattheendofeachtaxyearandaccrueevenlythroughouttheyear. ThecompanycarisusedforbusinessandprivatepurposesandoriginallycostsSGD90,000. Yearsended2017and2018 (1)residualvalue=SGD18,000; (2)petrol/maintenanceexpensespaidbycompany; (3)privatemileagetravelled=10,000km. Yearended2019 (1)PARFvalue=SGD18,000; (2)actualrunningexpense(e.g.petrol/maintenance/carpark/ERP)incurredbycompany=SGD25,000. Theemployeeisdeemedresidentthroughouttheassignment. Taxtreatiesandtotalizationagreementsareignoredforthepurposeofthiscalculation. Calculationoftaxableincome2 Year-ended 2017SGD 2018SGD 2019SGD DaysinSingaporeduringyear 365 365 365 Earnedincomesubjecttoincometax       Salary 137,000 137,000 137,000 Bonus 27,400 27,400 27,400 Cost-of-livingallowance 13,700 13,700 13,700 Housingallowance 16,440 16,440 16,440 Companycar 8,585* 8,585* 13,800* Movingexpensereimbursement 0 0 0 Homeleave(100%) 6,850 6,850 6,850 Educationallowance 4,110 4,110 4,110 Totalearnedincome 214,085 214,085 219,300 Otherincome 0 0 0 Totalincome 214,085 214,085 219,300 Deductions 11,000 11,000 11,000 Totaltaxableincome 203,085 203,085 208,300 *Carbenefitcalculation: Yearsended2017and2018 Taxablebenefit=3/7x[(90,000-18,000)/10]+(0.55x10,000)=SGD8,585 Yearended2019 Taxablebenefit=3/7x[(90,000-18,000)/10+25,000]=SGD13,800 Calculationoftaxliability   2017SGD 2018SGD 2019SGD Taxableincomeasabove 203,085 203,085 208,300 Singaporetaxthereon 21,736 21,536** 22,727 **Inclusiveof50percenttaxrebateuptoamaximumofSGD200,asannouncedbytheMinisterforFinanceinthe2019Budgetspeechon18February2019. Backtotop Footnotes: 1 Certaintaxauthoritiesadoptan"economicemployer"approachtointerpretingArticle15oftheOECDmodeltreatywhichdealswiththeDependentServicesArticle.Insummary,thismeansthatifanemployeeisassignedtoworkforanentityinthehostcountry/jurisdictionforaperiodoflessthan183daysinthefiscalyear(oracalendaryearofa12-monthperiod),theemployeeremainsemployedbythehomecountry/jurisdictionemployerbuttheemployee’ssalaryandcostsarerechargedtothehostentity,thenthehostcountry/jurisdictiontaxauthoritywilltreatthehostentityasbeingthe"economicemployer"andthereforetheemployerforthepurposesofinterpretingArticle15.Inthiscase,Article15reliefwouldbedenied,andtheemployeewouldbesubjecttotaxinthehostcountry/jurisdiction. 2 SamplecalculationgeneratedbyKPMGServicesPteLtdandbasedontheSingaporeIncomeTaxAct(chapter134)andtheprevailingpracticesoftheInlandRevenueAuthorityofSingapore    Specialconsiderationsforshort-termassignments Residencyrules Payrollconsiderations Taxableincome Additionalconsiderations Forthepurposesofthispublication,ashort-termassignmentisdefinedasanassignmentthatlastsforlessthan1year. ResidencyRules Aretherespecialresidencyconsiderationsforshort-termassignments? Anon-residentindividual,otherthanadirector,exercisinganemploymentinSingaporefornotmorethan60daysinacalendaryearisexemptfromtaxonincomearisingfromthatshort-termemployment.Ifpossible,itmaybebeneficialtostructureshort-termassignmentsuchthatthe60-dayexemptionapplies. Singaporecurrentlyhastaxtreatieswithseveralcountries/jurisdictionsthatmayprovideexemptionfordependentservicesforshort-termemployment,subjecttoconditions. Payrollconsiderations Aretherespecialpayrollconsiderationsforshort-termassignments? TaxtreatyexemptionwouldgenerallyrequirethatthepayrollcostsmustnotbebornebyapermanentestablishmentinSingapore. Taxableincome Whatincomewillbetaxedduringshort-termassignments? AnemployeewhoexercisesemploymentinSingaporewillbeliabletoSingaporeincometaxontheremuneration(includingallbenefits,whetherinmoneyorotherwise,unlesstheyarespecificallyexemptedfromincometaxorarecoveredbyanexistingadministrativeconcession)payabletothemfortheirservicesrenderedinSingaporeeventhoughtheremunerationmaybepaidoutsideSingapore. Additionalconsiderations Arethereanyadditionalconsiderationsthatshouldbeconsideredbeforeinitiatingashort-termassignmentinSingapore? Whereforcertainreasons(e.g.lengthofassignment,cost-chargingarrangementsetc.)taxtreatyexemptionoftheemploymentincomeinSingaporeisnotpossible,carefulplanningoftheshort-termassignmentstartandenddatesmayresultintaxsavings. Separately,theremaybefilingrequirementstobefulfilledbytheemployer/employeepursuanttotheshort-termassignment,notwithstandingthattax-exemptionmayapplyinaccordancetothelocaltaxlawsorthedouble-taxationagreement. Backtotop    Othertaxesandlevies Socialsecuritytax Gift,wealth,estate,and/orinheritancetax Realestatetax Sales/VATtax Unemploymenttax Othertaxes Socialsecuritytax Aretheresocialsecurity/socialinsurancetaxesinSingapore?Ifso,whataretheratesforemployersandemployees? SocialsecurityorCentralProvidentFund(CPF)contributionsaremandatoryforSingaporecitizensandSingaporepermanentresidents(“SPRs”)whoareemployedinSingapore. ForeignindividualsworkinginSingaporearenoteligiblefortheCPFscheme. UndertheScheme,theemployerandemployeearerequiredtomakemonthlycontributionsattheprevailingcontributionrateswhicharecontingentuponthewageandagegroupoftheemployee. Ingeneral,theemployerandemployeearerequiredtomakeCPFcontributionontheemployee’sOrdinaryWageandAdditionalWagesubjecttoanAnnualWageCeiling. ThecurrentwagecapfortheOrdinaryWageisSGD6,000permonthwhiletheAnnualWageCeilingisSGD102,000. AdditionalWageislimitedtothedifferencebetweentheprevailingAnnualWageCeiling(SGD102,000)andtheOrdinaryWagethathasbeensubjecttoCPF. ThecontributionratesfordifferentagegroupsandSPRstatusareasshowninthetablebelow: CPFRates 1stYearSPR 2ndYearSPR 3rdYearSPR+citizens (A)55Yearsandbelow Employee 5.0% 15.0% 20.0%   Employer 4.0% 9.0% 17.0%   Total 9.0% 24.0% 37.0% (B)Above55to60years Employee 5.0% 12.5% 13.0%   Employer 4.0% 6.0% 13.0%   Total 9.0% 18.5% 26.0% (C)Above60to65years Employee 5.0% 7.5% 7.5%   Employer 3.5% 3.5% 9.0%   Total 8.5% 11.0% 16.5% (D)Above65 Employee 5.0% 5.0% 5.0%   Employer 3.5% 3.5% 7.5%   Total 8.5% 8.5% 12.5% Underthelaw,itistheobligationoftheemployertoremitanymandatoryCPFcontributionstotheCPFBoard. Gift,wealth,estate,and/orinheritancetax Arethereanygift,wealth,estate,and/orinheritancetaxesinSingapore? No. Realestatetax ArethererealestatetaxesinSingapore? AllpropertyownersareliabletopayPropertyTaxwhichisataxonimmovableproperties(thatis,landandbuildings).Thetaxpayableiscalculatedbasedonapercentage(taxrate)oftheannualvalue. AnnualValueistheestimatedannualrentofyourpropertyassumingitisletout. Sales/VATtax Aretheresalesand/orvalue-addedtaxesinSingapore? Thereisa7percentGoodsandServicesTax(GST)ondomesticconsumption. Unemploymenttax ArethereunemploymenttaxesinSingapore? No. Othertaxes ArethereadditionaltaxesinSingaporethatmayberelevanttothegeneralassignee?Forexample,customstax,excisetax,stamptax,andsoon. Stampdutyispayableoncertaindocumentsrelatingtopropertiesandshares. EmployersarerequiredtocontributeSkillsDevelopmentLevy(SDL)foreachemployeeattherateof0.25percentuptothefirstSGD4,500ofgrossmonthlyremunerationoftheemployee.TheSDLissetataminimumofSGD2andcappedatSGD11.25foranemployeepermonth. Withholdingtax Anon-residentisliabletopayincometaxonSingapore-sourcedincome.Underthelaw,apersonhasalegalobligationtowithholdapercentageofthepayment,whentheymakepaymentsofaspecifiednatureundertheSingaporeIncomeTaxAct,toanon-resident. Thefollowingisalistofpaymentsubjectedtowithholdingtax: interest royalties managementfeesandservicefees non-residentdirector’sremuneration professionalservicefeesfornon-residentprofessionals. Thislistismeantforillustrativepurposesonlyandisbynomeansexhaustive. ForeignFinancialAssets Istherearequirementtodeclare/reportoffshoreassets(e.g.foreignfinancialaccounts,securities)tothecountry/jurisdiction’sfiscalorbankingauthorities? FinancialinstitutionsinSingaporearerequiredtoreportaccountsoftaxresidentsfromcountries/jurisdictionsthathavesignedaCompetentAuthorityAgreement(“CAA”)withSingaporetotheIRAS,andsuchinformationwillbeexchangedwithothertaxauthoritiesinaccordancewiththetermsoftheCAAs.Theinformationreportedwillbedetailsofaccountsandproductstheindividualhaswiththefinancialinstitution. Backtotop    Immigration FollowingisanoverviewoftheconceptofSingapore’simmigrationsystemforskilledlabor. (E.g.whichstepsarerequired,authoritiesinvolved,in-country/jurisdictionandforeignconsularprocesses,review/draftflowchartillustratingtheprocess) Thissummaryprovidesbasicinformationregardingbusinessvisitsto,andworkauthorizationfor,Singapore.Theinformationisofageneralnatureandshouldnotberelieduponaslegaladvice. SingaporeImmigrationTerminology EmploymentPass(EP):MainemploymentvisaforskilledworkersinSingapore SPass:Employmentcategoryformid-skilledworkersinSingapore DependentPass(DP):Categoryforspousesandchildrentoaccompany/jointheEP/SPassholderinSingapore(restrictionsapply) In-PrincipleApproval(IPA)letter:ThedocumentissuedbytheMinistryofManpower(MOM)toconfirmtheapprovalofanapplication LongTermVisitPass(LTVP):Categoryforunmarriedpartners,andparentstojointheEPholderinSingapore(restrictionsapply) ShortTermVisitPass(STVP):ForshorttermvisitsinSingapore,suchasforbusinessmeetingsandtourismpurposes NotificationLetter:Theletter,whichisprovidedtoconfirmissuanceofthepass,allowingemploymenttocommence ToenterintoSingapore,shorttermvisitpasses(“STVP”)willbegrantedbytheImmigration&CheckpointsAuthority(“ICA”)officerstoforeignersforalimitedperiodoftime(typically30to90days)atthepointofentry. Entryvisaswillberequiredfornationalsfromthefollowingcountries/jurisdictions: Armenia,Afghanistan,Azerbaijan,Algeria,Belarus,Bangladesh,DemocraticPeople’sRepublicofKorea,Georgia,HongKongSpecialAdministrativeRegion(DocumentofIdentity),Egypt,India,Iran,Kazakhstan,Iraq,Kyrgyzstan,Jordan,Kosovo,Lebanon,MacaoSpecialAdministrativeRegion(TravelPermit),Moldova,Lebanon,Libya,Mali,Morocco,Pakistan,Nigeria,SaudiArabia,Russia,Somalia,People'sRepublicofChina,Sudan,Tajikistan,Syria,Turkmenistan,Tunisia,Ukraine,UzbekistanandYemen. NationalsoftheCommonwealthofIndependentStates,Georgia,India,People'sRepublicofChina,TurkmenistanandUkrainemaybeeligiblefortheVisa-FreeTransitFacility(VFTF).FormoreinformationontheVFTF,click here. Possessionofavisaalonedoesnotguarantee aforeigner’s entryintoSingapore.Thegrantofanimmigrationpass toaforeignvisitorisdeterminedbytheICAofficers atthepointofentryatSingaporecheckpointsandeachcaseisconsideredonitsownmerits. InternationalBusinessTravel/Short-TermAssignments Describe(a)whichnationalitiesmayenterSingaporeasnon-visanational,(b)whichactivitiestheymayperformand(c)themaximumlengthofstay. Countries/jurisdictionswhicharenotlistedonthevisa-requiredlisttoSingaporeareclassifiedasnon-visanationals:https://www.ica.gov.sg/visitor/visitor_entryvisa AforeignerwhotravelstoSingaporeforbusinessvisitsisallowedtoparticipateinactivitieslimitedtobusinessmeetings,sitevisits,negotiations,andattendingseminarsuntilthevalidityoftheSTVPgrantedatthepointofentrytoSingapore.Theforeignerdoesnotneedaworkpasstoparticipateinsuchactivities.TheactivitiesshouldnotinvolveacontractofserviceoracontractforservicewithanemployerinSingapore,otherwise,generallyaWorkPasswillberequiredwhentheforeignerentersSingaporeforbusiness. TheforeignercanperformcertainworkpassexemptactivitiesinSingaporeforshortdurationswithoutaWorkPass.Theindividualcanonlyperformtheseactivitiesafterane-notificationissubmittedtotheMOM.Suchworkpassexemptactivitiescanbeperformedforanynumberofvisits,but uptoatotalof 90daysinacalendaryear (e.g.3stintsof30daysunderWorkPassExemptactivities).Iftheperiodoftheactivityexceeds90days,theindividualwillneedtoobtainaWorkPass. Theworkpassexemptactivitiesarelimitedto: Theorganizationorconductofanyseminar,conference,workshop,gatheringortalk Providingexpertiseorspecializedskillsincommissioning,auditing,repairing,ormaintainingofplants,equipment,processesormachinerynotavailableinSingapore Otherworkpassexemptactivities:Performances;Journalism;Sports;LocationFilming&FashionShows;Exhibitions;ProvidingArbitrationorMediationServices;JunketActivitiesinaCasino;TourFacilitation Ifaforeignerparticipatesinanygainfulemploymentactivitiesthatdonotfallintothecategoryofworkpassexemptactivities,irrespectiveofthedurationoftheactivities,theforeignerwillneedtoapplyforaWorkPass. Describe(a)theregulatoryframeworkforbusinesstravelersbeingvisanationals(especiallytheapplicablevisatype),(b)whichactivitiestheymayperformunderthisvisatypeandthe(c)maximumlengthofstay. VisanationalsarerequiredtoobtainanentryvisatoenterSingapore.TheyareallowedtoenterSingaporeaseithertouristsorbusinessvisitorsusingtheirpassportsandcopyofavalidentryvisa.ASTVPof30daysto90dayswillbegrantedatthepointoftheirentryinSingapore. Visanationalscanperformthesameaforementionedactivities(theseincludebusinessmeetings,sitevisits,negotiations,attendingseminars,andperformingworkpassexemptactivities)asnon-visanationals,duringthelengthofstayasgrantedatthepointofentrytoSingapore. Outlinetheprocessforobtainingthevisatype(s)namedaboveanddescribe(a)therequireddocuments(includinganylegalizationortranslationrequirements),(b)processsteps,(c)processingtimeand(d)locationofapplication. EntryvisacanbeappliedbyanauthorizedvisaagentorlocalSingaporecontactataSingaporeEmbassy,SingaporeOverseasMission,orviatheImmigration&CheckpointsAuthority(ICA)onlinefacility. Applyforanentryvisawithin30dayspriortoarrivalinSingapore.Processingtimemaytake1to3daysorlongerduringpeakperiodsonceapplicationissubmitted. DocumentsrequiredforanEntryvisaapplication: aninvitationletterfromthehostentitystatingthepurposeoftravel aprintedbusinessprofileoftheSingapore-registeredbusinessentitythattheapplicantwillbevisiting(showingthenamesofalldirectorsandshareholders).ThebusinessprofilemusthavebeenprintedfromtheAccountingandCorporateRegulatoryAuthority’sInstantInformationServicewithinthelast3months. Arethereanyvisawaiverprogramsorspecificvisacategoriesfortechnicalsupportstaffonshort-termassignments? Therearenovisawaiverprogramsorspecificvisacategoriesfortechnicalsupportstaffonshort-termassignments. Long-TermAssignments Whatarethemainworkpermitcategoriesforlong-termassignmentstoSingapore?Inthiscontextpleaseoutlinewhetheralocalemploymentcontractisrequiredforthespecificpermittype. EmploymentPass(employmentorassignmentcontractisrequired) TheEmploymentPass(“EP”)isaworkpassforforeignprofessionalsworkinginmanagerial,executiveorspecializedjobs.TheemployermayalsoberequiredtocomplywithregulationsstipulatedundertheFairConsiderationFrameworkunlessitmeetstheconditionsforexemption.Thisisdiscussedinfurtherdetailbelow. SPass(employmentorassignmentcontractisrequired) TheSPasscategorytypicallycaterstomid-levelskilledforeigners,suchasprofessionals,specialistsortechnicianleveljobs.Theapplicantshouldpossessanacceptabledegree,diploma,technicalorspecialistcertificate.Certificationsshouldbeobtainedfromatleast1yearoffull-timestudy.Anotherconsiderationistheyearsofrelevantjobexperience. WorkPermit(employmentcontractisrequired) TheWorkPermit(“WP”)isgenerallyissuedtoforeignunskilledandsemi-skilledworkerswhowishtoworkinSingaporeintheConstruction,Manufacturing,MarineandShipyard,Process,orServicessectorsandwhooriginatefromanapprovedsourcecountry/jurisdiction.TheapprovedoriginatingsourcewoulddependontheindustryorsectorinwhichtheprospectiveemployercarriesoutitsbusinessactivitywhichisdeterminedstrictlybyMOM.InthisregardandsimilartotheSPassapplication,employerswhoaremakingfirst-timeapplications,i.e.neverappliedforWPorSPassbefore,arerequiredtomakeadeclarationoftheirbusinessactivitytotheMOMpriortotheapplication. AnapplicationmustbemadetotheControllerofWorkPassesforaWPbytheprospectiveemployerbeforeemployingtheforeignworker.TheWPisnormallygrantedfor2yearsandissubjecttothevalidityoftheworker'spassport,thesecuritybondandtheworker'semploymentperiod,whicheverisshorter. Provideageneralprocessoverviewtoobtainaworkandresidencepermitforlong-termassignments(includingprocessingtimesandmaximumvalidityofthepermit). CaseProcessing Step1:Pre-Arrival–InPrincipleApproval(IPA) Documentgathering(1-2weeks) Assistwithtranslationofdocuments,ifrequired(4to5workingdays) FileapplicationwiththeMOMtoobtainaworkpass(inprincipleapprovaltakes3weeksorlongerifvettingisrequired) Step2:PostArrivalProcess Note:TheemployeewillneedtobephysicallyinSingaporeatthetimeweissuetheworkpassàtheemployeeisonlyabletostartworkoncetheworkpasshasbeenissued Issuanceofworkpassuponassignee’sarrivaltoSingapore,hencegeneratinganotificationletterandscheduleanappointmenttocompletetheformalitiesattheMOM-Pleasenotethatamedicalexaminationmayberequiredpriortoissuanceoftheworkpass(1day) Theemployee(foreignnational)completesthebiometricregistrationprocessontheappointeddate/time,forselfand/ordependents(1-2days) EPorSPasscourieredtotheoffice(5daysaftercompletingtheformalitiesattheMOM) Ingeneral,theprocesscantakeabout8–9weeks,fromtheinitiationtoobtainingofthepasscard. MedicalExamination: UsuallyrequiredforSPassandsometimesEPholdersApplicabletobothnewandrenewalapplicationsFamilymembers(dependants)mayalsoneedtoattendShouldbecompletedinSingaporeKPMGinSingaporeisabletohelpcoordinatethemedicalexamination BiometricAppointment: Requiredforallapplications(includingrenewals)wherebiometricdatahasnotbeenprovidedinthepreceding5yearsTheappointmentlastsforabout10-15minutesTakesplaceatheEmploymentPassServicesCentrenearSingaporeClarkeQuayMRTAdigitalphotographandfingerprintsaretakenChildrenaged5orbelowneedtoattendtheappointmentbutnofingerprintsaretaken Generally,theEPorSPassmaybeissuedbyMOMforaperiodofupto2years,andisrenewableforupto3yearsatatime. TheWPisnormallygrantedfor2yearsandissubjecttothevalidityoftheworker'spassport,thesecuritybondandtheworker'semploymentperiod,whicheverisshorter. Isthereaminimumsalaryrequirementtoobtainalong-termworkandresidencepermitforassignments?Canallowancesbetakenintoaccountforthesalary? EmploymentPass ToqualifyforanEmploymentPass,theapplicantmustearnafixedmonthlysalaryofatleastSGD4,500(atleastSGD5,000forapplicantsinthefinancialservicessector),inclusiveofmonthlyfixedallowances.From1May2021,theseminimumsalariesarealsoapplicabletorenewals.Olderandmoreexperiencedcandidatesintheir40sareexpectedtoearnarounddoubletheminimumqualifyingsalaryfortheyoungestapplicants. SPass ToqualifyforanSPass,theapplicantmustearnaminimumfixedmonthlysalaryofSGD2,500inclusiveofmonthlyfixedallowances.From1May2021,thisminimumsalaryisalsoapplicabletorenewals.Olderandmoreexperiencedcandidatesintheir40sareexpectedtoearnarounddoubletheminimumqualifyingsalaryfortheyoungestapplicants. DifferencesbetweenEPandSPass EP: EPminimumfixedmonthlysalary:SGD4,500(SGD5,000forfinancialservices).EPapplicationsarenotsubjecttoanylevy.EPapplicationsdonothaveaquotasystem. SPass: SPassminimumfixedmonthlysalary:SGD2,500SPassrequiresthecompanytopayalevyforeachSPassholderTheemployermusthavemedicalinsuranceTheemployermusthavesufficientquota Similarities: AbletoapplyforDependentPassesonlyifthefixedmonthlysalaryisatleastSGD6,000. JobsmustbeadvertisedinMyCareersFutureiftheywillbeusedtosupporteitheranEPoranSPassapplication.Previously,theadvertisingrequirementappliedtoEPonly.Theminimumjobpostingdurationis28daysforbothEPandSPassandemployersmustconsiderallcandidatesfairly. Previously,EPdependantshadtheoptiontokeeptheirDPandsecureanadditionalauthorisation,calledaLetterofConsent(LOC),inordertowork.However,from1May2021,allDPholdersneedtoobtaintheirownworkpass—suchasanEP,SPass,orWorkPermit—andmeettheapplicablequota,levy,andeligibilityrequirements.DPholderswhoseektostartanewbusinessandmeetthequalifyingcriteriacanapplyforanLOC. WorkPermit ThereisnominimumsalaryrequirementtoapplyforWP.However,applicantswouldneedtoearnhighersalariescommensuratewiththeirworkexperience. Isthereafast-trackprocesswhichcouldexpeditethevisa/workpermit? Currently,thereisnofast-trackoption. Atwhatstageistheemployeepermittedtostartworkingwhenapplyingforalong-termworkandresidencepermit(assignees/localhire)? Theemployeeispermittedtostartworkoncetheworkpassisissued. Canashort-termpermit/businessvisabetransferredtoalong-termpermitinSingapore? No,thisisnotapplicableforSingapore. Isthereaquotaorsystemoralabormarkettestinplace? Jobadvertisingrequirement TostrengthentheSingaporeancoreintheworkforceandpromotefairrecruitmentandemploymentpractices,SingaporeancompaniesmustcomplywiththeFairConsiderationFramework(“FCF”)andtheTripartiteGuidelinesonFairEmploymentPractices(“TGFEP”). ForthepurposeofapplyingforanEPorSPass,anemployermayberequiredtoadvertiseajobvacancyfor28daysinaprescribedwayundertheofficialjobsbank,MyCareersFuture.Currentexemptionstoadvertisingaroleinclude: wherethecompanyhas10orfeweremployees thejobpositionispayingafixedmonthlysalaryofSGD20,000andabove thejobistobefilledbyanintra-corporatetransferee(“ICT”).UndertheWorldTradeOrganisation’sGeneralAgreementonTradeinServices(WTOGATS),ICTsrefertothoseholdingseniorpositionsintheorganizationorhaveanadvancedlevelofexpertise. thejobisnecessaryforshort-termcontingencies(i.e.periodofemploymentinSingaporefornotmorethan1month) Evenwhereanexemptionapplies,however,companiesareencouragedtoadvertisejobvacanciesinaccordancewiththeFCFandtheTGFEP. Recruitment–PlacingadvertisementsonMyCareersFuture:Whenpostingajobadvertisement,theemployershouldavoidstatingapreferencefornationality,age,race,religion,language,gender,maritalstatus,orfamilyresponsibilities. SPassandWPforeignworkerquota The“localqualifyingsalary”(LQS)determinesthenumberoflocalemployeesthatcanbeusedtocalculateanemployer’sSPassandWPquotaentitlement.AnemployeewhoisaSingaporeancitizenorpermanentresidentiscountedasonelocalemployeeiftheyearntheLQSofatleastSGD1,400permonth.ThemaximumnumberofSPassandWPholdersthatacompanyisallowedtohireislimitedbytheforeignworkerquotasetbytheMOMknownastheDependencyRatioCeiling(“DRC”). Sector Current Changes DRC Services 35% Nochange Construction 87.5% Nochange MarineShipyard 77.8% Nochange Process 87.5% Nochange Manufacturing 60% Nochange SPasssub-DRC Services 10% Nochange Construction 18% Todecreaseto15%from1January2023 MarineShipyard 18% Todecreaseto15%from1January2023 Process 18% Todecreaseto15%from1January2023 Manufacturing 20% Nochange ForeignWorkerLevyforSPassholders AmonthlySPasslevywouldbepayablebytheemployerforeachSPassemployeeholder.Thelevyratesvaryfromoneindustrysectortoanotherandtheratesaretieredsothatthosewhohireclosetothemaximumquotawillpayahigherlevy.Ingeneral,themoreforeignworkersthecompanyhires,thehighertheforeignworkers’levyrateandlevybill. ForeignWorkerLevyforWPholders AmonthlyWPlevywouldbepayablebytheemployerforeachWPemployeeholder.Thelevyratesaredeterminedbytheindustrysector,worker’squalification,andDependencyRatioCeilingandMan–YearEntitlementqualifications.Theratesaretieredandgenerally,themoreforeignworkersthecompanyhires,thehighertheforeignworkers’levyrateandlevybill. GeneralImmigrationRelatedQuestions WoulditbepossibletobringfamilymemberstoSingapore? EPandSPassholderswithafixedmonthlysalaryofatleastSGD6,000mayapplyforDependent’sPassesfortheir: Spouses(legallymarried) Unmarriedorlegallyadoptedchildrenunder21yearsofage Inaddition,EPholderswithafixedmonthlysalaryofatleastSGD6,000mayapplyforLongTermVisitPassfortheir: Common-lawspouse Unmarriedhandicappedchildrenabove21yearsold Unmarriedstepchildrenunder21yearsold Parents(onlyforEPholdersearningatleastSGD12,000andabove) TheDPsandLTVPswillneedtobesponsoredbytheemployersoftheEPandSPassholders. Basedontheabovecriteria,WPholderswillnotbeeligibleforDPsponsorship. Isitpossibletoobtainapermanentresidencepermit? AllEPandSPassholdersareeligibletosubmitanapplicationforSingaporePermanentResidence(“PR”)totheICAofSingapore.AnapplicantforSingaporePRmayincludetheirspouseandchildrenintheapplication. AforeignerholdingSingaporePRcanworkwithoutobtainingaseparateworkpassorauthorizationfromtheMOM. TheMOMistighteningtheframeworkandeligibilitycriteriaforSingaporePRapplications.Thus,theauthoritiesaresignificantlymorestringentinthegrantingofPRstatusandanoutcome,positiveornegative,couldtakeapproximately6-12monthsofprocessingfromthedateofsubmission. WhatifcircumstanceschangeaftertheWorkandResidenceapplicationprocess? Changesinthetermsofemploymentorpersonalsituation,includingjobtitle,jobroleorsalary,mayrequireanupdatetotheMOMbysubmittinganotification. HowlongcanapermitholderleaveSingaporewithouttheirpermitbecominginvalid? Generally,EPorSPassholderscanleaveSingaporeforupto6months.However,ifitismorethan6months,employersmayhavetocancelthepasses. WPholderscannotleaveSingaporeforalongperiodoftime.Ifrequired,theemployerwillneedtorequestanapprovalfromtheMOMtowaivethelevyfortheduration. Mustimmigrationpermitsbecancelledbytheendoftheassignment/employment? Theworkpassandrelatedpassesmustbecancelledwithin1weekafterthelastdayofnoticeuponcompletionofassignment,cessationorterminationofemployment. Uponcancellationofthepass,anSTVPwillbeissuedtoallowtheemployeetoremaininSingaporefor30daysandalsoserveastheembarkationformwhendepartingSingapore.  ASTVPholdershouldnotengageinanyformofpaidemploymentorinanybusiness,profession,oroccupationinSingapore. Arethereanypenaltiesforindividualsand/orcompaniesinplacefornon-compliancewithimmigrationlaw? AforeignindividualcanonlyworkforthecompanyaftertheWorkPassisissuedonthestartdateofemployment. AforeignindividualcanonlyworkwiththesponsoringentityoftheWorkPass. Iffoundtobeinviolationoftheabove,boththeemployeeandemployermaybefinedbytheMOMandinsomeseriouscases,ajailtermmayapply. OtherImportantItems Listanyotherimportantitemstonote,orcommonobstaclesfaced,inSingaporewhenitcomestotheimmigrationprocesses. The“TripleWeak”firmconcept Companieswhoareassessedas“TripleWeak”,i.e.haveaweakSingaporeCore,weakcommitmenttodeveloptheSingaporeCoreandweakeconomiclinkandsocialimpacttoSingaporewillbeplacedonawatchlistandmayhavetheirworkpassprivilegescurtailed. Ifcorrectiveactionsarenottaken,workpassprivilegesmaybesuspended.Renewalofexistingemploymentpassesandprocessingofnewemploymentpassapplicationsmayalsobeaffected. Ontheotherhand,“TripleStrong”companieswhoareregardedascriticaltoSingapore’sfuturedevelopment,includingthoserelatedtotheSmartNationprogram,advancedmanufacturingandfutureservices,willreceivemoresupporte.g.newHumanCapitalPartnership(“HCP”),whichisaimedatnurturingpromisinglocaltalentsintoregionalandevenglobaltalents. Intra-corporatetransferees(ICT) EPapplicationsviatheICTrouteareexemptfromthejobadvertisingrequirement.However,sinceNovember2020,ICTcandidatesarenolongereligibleforDependentPassesorLongTermVisitPasses,exceptwherespecificallycoveredbyanapplicableFreeTradeAgreement(FTA)andmeetthecriteriatherein.Moreover,theirperiodofstayinSingaporeisstrictlylimitedtotheprovisionundertheapplicableFTA.TheyarealsogenerallynoteligibleforfutureemploymentinSingaporeupontheexpiryorterminationoftheirEP,orforpermanentresidency. Tech.PassandTech@SG InJanuary2021,theEconomicDevelopmentBoard(EDB)launchedTech.Pass,anewworkpasscategorywith500placesavailableuponlaunch.Thepassisintendedtoattracthighlyaccomplishedtechnologyentrepreneurs,leaders,andexpertstostartandoperatemorethanonecompany,aswellaspursueotherpermissiblerolessuchasbeinganinvestor,mentororconsultantforSingaporestart-ups. TheTech.PassisanextensionoftheTech@SGprogrammewhichwaslaunchedinJanuary2020.Tech@SGallowshigh-potentialtechnologycompaniestoreceiveuptotenEPsovertwoyearsforforeignemployeeswhowillbehiredaspartofthecompany’scoreteaminSingapore. BothTech.PassandTech@SGfacilitateentryandsupportforfast-growingtechnologycompaniesandworld-classtalenttodevelopSingapore’stechecosystem. CommonRedFlags EmployeehaspreviouslybeenaSingaporeCitizenorPermanentResident Longerprocessingtimesorrejectionsforcertainnationalities Incompleteeducationdocuments AdditionaldocumentationrequirementsforthosegraduatingfromuniversitiesinIndiaandChina Same-sexpartnerscannotreceivedependentpassesorlong-termvisitpasses Companies:whenthecompanysetsupanewentitywhichhasnotpreviouslysponsoredforeignworkers Missing/inaccuratejobsbankinformation InsufficientquotaforSpassapplications Hitherto,thereisagrowingtrendtowardsstricterimmigrationrequirements. Backtotop Disclaimer AllinformationcontainedinthispublicationissummarizedbyKPMGServicesPte.Ltd.,aSingaporeincorporatedcompanyandamemberfirmoftheKPMGglobalorganizationofindependentmemberfirmsaffiliatedwithKPMGInternationalLimited,aprivateEnglishcompanylimitedbyguarantee.TheinformationcontainedinthispublicationbasedonrelevantprovisionsoftheSingaporeincometaxlegislations,regulationsissuedthereunderandjudicialandadministrativeinterpretationsthereof,andthewebsitesoftheInlandRevenueAuthorityofSingapore,CentralProvidentFundBoard,MinistryofManpower,MonetaryAuthorityofSingaporeandPersonalDataProtectionCommission. InternationalTax 2021taxationofinternationalexecutives 2021taxationofinternationalexecutives Aglobalsurveyofincometax,socialsecuritytaxratesandtaxlegislationimpactingexpatriateemployees. Aglobalsurveyofincometax,socialsecuritytaxratesandtaxlegislationimpacting... 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