Moving to a new place or country is never easy. You just don’t adjust your life but organize visas, find new jobs and familiarize yourself with the country’s tax system and lifestyle. If you are relocating to the Lion City, it helps to be familiar with Singapore tax law. It’s not advisable to do your own taxes but be aware that employers don't pay their contractors taxes via the PAYE system. Either you try paying tax in Singapore on your own or find a better option to help you out with Singapore taxation.
Do You Only Have to Pay Income Tax in Singapore?
Most contractors are confused whether they still need to pay tax in their own country for the income earned in Singapore. Singapore tax treaties with other countries should ensure that most contractors don't pay double taxes on anything earnt in Singapore. It is advisable to consult with a Singapore taxation specialist to be sure. Beat in mind that Singapore doesn't tax residents on income generated outside the country - so it can be highly beneficial to get residency.
Are There any Deductions That Can Reduce Income Tax in Singapore?
You might be eligible for some deductions whilst you’re working in Singapore, but typically they are only for residents. Furthermore learning all of the different possibilities can be time-consuming. The basic rate of income tax only ranges from 2 to 20 percent but there is also public health insurance and social security (CPF) to worry about. This is 20% of earnings for locals but doesn't apply to non-residents.
To keep more of your money, it’s useful to find an expert in Singapore taxation to explain the various possible benefits to you. You might not be eligible for them all, but learning about expat tax deductions is extremely important.
How Do I Pay Income Tax in Singapore?
Income tax can be paid by your employer, directly by you if you are self employed or by your umbrella company. It is relatively simple to register with the tax authorities.
How Do Umbrella Companies Help with Singapore Taxation?
Your Singapore contract work is made easier by an umbrella company who will organize and handle your income tax. This can be done when your salary is processed by them which make them technically your employer. By doing this, you let them handle your wages and taxes in Singapore via the PAYE system. You just work as you normally would, submit timesheets and receive prompt payment. You get to keep more of your wages as they are experts in how Singaporean tax law applies to expats.
How We Can Help with Singapore Taxation
We can help you find the right umbrella company who would handle your tax payments. You'll get a frank understanding of the potential benefits and service options as well as free advice on how to best structure your taxes. Get any questions about Singapore taxation handled by experts.
In particular contractors will benefit if working in one of these industries - IT Project Management, oil and gas, testing, software development, telecommunications and business analysis. You can utilize our services for free and without any obligation. Contact us today for help with Singapore taxation!