# Tax on Salary - in Singapore for at least 183 days straddling two years



## SK85 (Jul 9, 2014)

Hi There,

I'm started work in Singapore since 04-Aug-2014. Till now (as of 28-Feb-2015) it 208 days that I stay in Singapore. Every month I need to pay tax by 15% (non-resident). Just now I checked on *iras.gov.sg/irashome/page.aspx?id=11538* and found section *If you are in Singapore for at least 183 days straddling two years*
Here what I noticed on this section:


> Under the two-year administrative concession, you will be regarded as a tax resident for the two years if you stay or work in Singapore for a continuous period of at least 183 days.
> 
> Example:
> You have stayed or worked in Singapore from 03 Nov 2013 to 07 May 2014 (186 days). You will be taxed as a resident for Years of Assessment 2014 and 2015.


Can anyone help me on my inquiry below?

Do I need to pay tax on salary as Resident or Non-Resident in 2015?
How much should I pay tax on salary in Feb-2015? Still 15% or less than?

Thanks in advanced!!!

Regards,
SK


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## simonsays (Feb 11, 2009)

SK85 said:


> Hi There,
> 
> I'm started work in Singapore since 04-Aug-2014. Till now (as of 28-Feb-2015) it 208 days that I stay in Singapore. Every month I need to pay tax by 15% (non-resident). Just now I checked on iras.gov.sg/irashome/page.aspx?id=11538 and found section If you are in Singapore for at least 183 days straddling two years
> Here what I noticed on this section:
> ...


What do you mean every month you have to pay ?

File you returns, hope to escape the 15% flat rate, and if you do get charged 15%, fret not 

Btw you know the Iras folks will assess and send your tax notice, right ? So hang in there 

You don't decide how much you pay.

Iras will offset in your next year's assessment as tax paid in advance


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## SK85 (Jul 9, 2014)

Hi ecureilx,

Let me clarify on this. Every month I got pay slip from a company I work for; deducted on my salary for Withholding*Tax 15% flat rate. I started from 04-Aug-2014 and till now it 209 days been in Singapore. Will company still deduct my salary for Withholding*Tax 15% flat rate?

By the way, I never get any tax notice from IRAS. Can you suggest?

With warm regards,
SK


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## simonsays (Feb 11, 2009)

SK85 said:


> Hi ecureilx,
> 
> Let me clarify on this. Every month I got pay slip from a company I work for; deducted on my salary for Withholding*Tax 15% flat rate. I started from 04-Aug-2014 and till now it 209 days been in Singapore. Will company still deduct my salary for Withholding*Tax 15% flat rate?
> 
> ...


That withholding by "some" companies is to cover their a** in case you do a runner as per law the employer has to pay your tax - "if" you disappeared at the time of pass cancellation !!!

Once you submit your e-file to IRAS and IRAS in due course sends you your tax due (not to your employer except when you are.leaving the. Company) your employer must pay iras and give back the balance, if due, or return the money withheld for you to pay iras.

Btw this is a very ancient practice and is discouraged much by IRAS. IrAs only requires employer to hold your last Month pay when you resign / cancel your ep.

Specially since you may go under resident rate 15% is too much to withhold 

Singapore doesn't have withholding tax for inCome tax or PAYE system for personal income tax, as IRAS tried to make you responsible for your tax as much as possible.

If your employer says otherwise or insist they have been paying iras - on your behalf without a tax assessment report them to iras/mom.

Where are you from btw ? Is your employer a large company or a body shop ?


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## simonsays (Feb 11, 2009)

SK85 said:


> By the way, I never get any tax notice from IRAS. Can you suggest?


Singapore tax filing is from March to April and assessment of tax / amount due will come back by July / August 

Financial year here is Jan to Jan 

Within the next few days iras will send you a letter with a e-file pin for you to e-file with the IR8 provided by your employer.

You have to e-file it yourself.


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## SK85 (Jul 9, 2014)

Hi ecureilx,

Thanks for your suggestion. I'm from Cambodia and the company that I work for is quite large; technology consulting companies presence in 9 countries across 4 continents and more than 1500 employees across the globe.

Now I got idea from you. Next will check with HR on this.

Thank you once again.

Regards,
SK


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## simonsays (Feb 11, 2009)

SK85 said:


> Hi ecureilx,
> 
> Thanks for your suggestion. I'm from Cambodia and the company that I work for is quite large; technology consulting companies presence in 9 countries across 4 continents and more than 1500 employees across the globe.
> 
> ...


If it's a large company they are just following some antique rule 

Once you e file and few month later get your tax charges I am sure they will release it to you for you to pay 

I wouldn't bother HR till the assessment process is completed and you have the numbers from IRAS


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