Singapore Taxation
Discussion
I hope someone can help me with this one 
Hubbie is a contractor, providing services in the UK through a Ltd Co.
He needs to spend some time in Singapore for family reasons, and it is possible for him to work out of the client's Singapore office.
We will still be invoicing the UK client, and invoices are paid into the Ltd Co's UK bank account.
Does he have any liability for taxation in Singapore? We are not sure yet how long this is for, minimum 10 days, maximum probably 28 days.
When he arrives, he will declare it as a business trip. Does he need to do anything else?
Many thanks
Hubbie is a contractor, providing services in the UK through a Ltd Co.
He needs to spend some time in Singapore for family reasons, and it is possible for him to work out of the client's Singapore office.
We will still be invoicing the UK client, and invoices are paid into the Ltd Co's UK bank account.
Does he have any liability for taxation in Singapore? We are not sure yet how long this is for, minimum 10 days, maximum probably 28 days.
When he arrives, he will declare it as a business trip. Does he need to do anything else?
Many thanks
no tax will be liable in Singapore.
If you work for 90 days or less in singapore, even as a resident of / employed in singapore, you are not liable for local Taxes here.
edit - when he arrives he will be given a 30 day visa (although they have been known to give 90 days occasionally)
If he needs to stay longer then go for a golf weekend to Malaysia / Indonesia and he will get another 30 days.
If you work for 90 days or less in singapore, even as a resident of / employed in singapore, you are not liable for local Taxes here.
edit - when he arrives he will be given a 30 day visa (although they have been known to give 90 days occasionally)
If he needs to stay longer then go for a golf weekend to Malaysia / Indonesia and he will get another 30 days.
Edited by XJSJohn on Monday 20th June 00:45
I don't agree with you John that the priciple is that simple, it will depend on where the income is deemed to arise, he needs to show that the Singapore employment was incedental to the work in the UK, and he shoul be able to do this, if as decribed he should also be talking about being on business in Sing not working in Sing, and he should have business visa not awork or tourist visa, and restrict himslf to the office, no commisioning instalation type stuff at site, if he is doing commissioning he needs to show it is incedental to the supply of the equipment, and the title transfer in the equipent should be outside Sing.
Prividing he does thai he should be OK but there is realy too little info for afull opinion. so the above is my comment not given in any proffesional capacit or with any warrent.y
Prividing he does thai he should be OK but there is realy too little info for afull opinion. so the above is my comment not given in any proffesional capacit or with any warrent.y
as i read it he will be in singapore on business travel, working out of a client office for a period of less than 1 month, he is still on the UK employment contract and paid from a UK client to his UK Ltd Company.
therefore it is nothing more than a period of business travel, to be employed in and pay taxes in Singapore you need an employment pass with a FIN or IC number and a local bank account.
http://www.mom.gov.sg and http://www.iras.gov.sg will have the official Singa statements.
therefore it is nothing more than a period of business travel, to be employed in and pay taxes in Singapore you need an employment pass with a FIN or IC number and a local bank account.
http://www.mom.gov.sg and http://www.iras.gov.sg will have the official Singa statements.
No you don't, you need a source of income that is from Sing, as I say you will not be liable if the Sing source is incedental, and maybe the Sing athorities use 90 days as a guide line, if you are right just close your Sing bank account, get paid into a Malaysian account, no tax in Sing for you then by your rules, as I say you are missing the priciple. (your employer has a Perment Establishment (PE) in Sing)
The basic priciple of Tax is you pay tax where you live, and/or where you earn it, with double tax agreeemnt or unilateral irelief to avaid paying twice, The genaral rule is that you pay tax where the income is sourced, if the source is short term they will not bother you and let you pay where you live. And that is what I think in this case, but in the priciple is not as simple as you are saying.
There are exceptions for example you will pay Norwegian tax on any work you do in Norway if you are British, and there is no liability to UK Tax, providing you are work offshore, regardles of if your Emplyer has aPE, onshore is diffrent, if your emplyer has no PE and you are onshore you can work 183 days without Norwegian TAx liability
This is why commisiong and installtion work is a problem and why equipment suppliers don't like to give a separate price for it, and of couse there are all sorts of rules about if your employer has a permenent establishment in the Country,
Any way we can discuss in the GM.
The basic priciple of Tax is you pay tax where you live, and/or where you earn it, with double tax agreeemnt or unilateral irelief to avaid paying twice, The genaral rule is that you pay tax where the income is sourced, if the source is short term they will not bother you and let you pay where you live. And that is what I think in this case, but in the priciple is not as simple as you are saying.
There are exceptions for example you will pay Norwegian tax on any work you do in Norway if you are British, and there is no liability to UK Tax, providing you are work offshore, regardles of if your Emplyer has aPE, onshore is diffrent, if your emplyer has no PE and you are onshore you can work 183 days without Norwegian TAx liability
This is why commisiong and installtion work is a problem and why equipment suppliers don't like to give a separate price for it, and of couse there are all sorts of rules about if your employer has a permenent establishment in the Country,
Any way we can discuss in the GM.
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