# Foreigner Posted Overseas by a Singapore Company



## ntustudent

Hi, forum contributors

Thank you in advance for your time and effort spent on this.

I am a just-graduated foreign student in Singapore and I got an offer from a multi-national company (MNC). According to this agreement, I shall be recruited by its subsidiary in Singapore (which is a Singapore-based company) and will remain on Singapore company's payroll.

My job requires me to spend the entire time overseas and I will not be working in Singapore at all. So, I will be posted to country A for 3 months, then get a 1-month break, again country B for 3 months, 1-month break and so and so.

My company says since I am not working in Singapore, they will not apply for any employment pass here. (I do not hold PR in Singapore and currently on my Student's Pass) Singapore company requires me to apply for all visa (to my posted countries A and B) from my home country.

My questions are:-

1. Can a person recruited by and remain on a Singapore company payroll when he is not holding any work pass in Singapore?

2. What are the procedures drafted by MoM (Ministry of Manpower) when a company needs to post a foreigner to another country from Singapore?

3. Are there any restrictions by MoM when a Singapore company tries to post an Employment Pass holder to another country?

Thank You!


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## ladyme28

so its like ur a freelance/invi SG employee. if u have a work pass from SG,you will be paying tax if annual salary is above 20k. thats the only thing i see as the diff.


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## harrypro

HI !

If a foreigner is employed by singapore company (as per singapore contract) on the basis of working overseas as "overseas representative" , does he need employment pass in singapore or not ?


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## simonsays

if he is employed by a Singapore company, and expects to spend time here .. he needs an EP.

If he is going to be based overseas, and not likely to come over here, and if his passport allows visa-on-arrival, no need

And note that if you have an EP here, and salary is remitted from Singapore, he is liable for Taxes at end of each Financial year.


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## harrypro

Thanks for your prompt reply.. very appreciated...

my another concern is ..

he will be working in overseas representative office (a subsidiary of singapore company) and may often come to singapore for frequent meeting with head-office staffs.. (maybe 1-2 weeks per month) also his name will remain on singpaore office's payroll list and salary will be paid to his singapore bank account...

he will be paying tax to monaco tax authority for his income (if he declare..)

singapore gov can restrict hie frequent travel to singapore in such case ?

have you ever heard of any similar cases ?


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## simonsays

you need to do some reading. From what I know, if your pay is paid to a Singapore account, you need to pay tax.

For travel, if his passport is on-arrival-visa, need not worry about a pass- that's what I was explaining.

If his passport needs visa in advance at all times, then better go the way of pass, in which pass, tax is unavoidable.

Singapore will not restrict, but if he flies in every month for a week, for example, ICA may wonder whether is working here illegally and not declaring it..


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## harrypro

tax issue is very clear ... as follows ...from IRAS..

But, i am wondering how singapore cov, can tell between biz trip to head-office and working in singapore

//
Overseas employment

If you are contracted to be based overseas to render your full services wholly outside Singapore, you are not liable to tax in Singapore as the income is sourced outside Singapore. It does not matter where and how you are being paid. Your employer will not need to prepare the Form IR8A for you to file your tax in Singapore. If you work in Singapore as part of your overseas employment, the income attributable to services rendered in Singapore is taxable in Singapore unless the employment is exercised for not more than 60 days in a calendar year. For employment of 61 to 182 days in Singapore, you will be taxed at a flat rate of 15% or resident rates, whichever gives a higher tax and no personal reliefs would be granted. Your employer will have to seek tax clearance when you cease employment in Singapore.

Overseas income

Generally, overseas income received in Singapore on or after 1 Jan 2004 is not taxable. These include overseas income paid into a Singapore bank account.

You do not need to declare overseas income that is not taxable.

//


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## simonsays

harrypro said:


> tax issue is very clear ... as follows ...from IRAS..
> 
> But, i am wondering how singapore cov, can tell between biz trip to head-office and working in singapore


They can't tell the difference ..  seriously

it is their decision. if they see you coming every month for 1 week, they may ask what's the purpose, and a simple explanation that your HQ is here etc. etc. would suffice - and if you have a letter to that effect, it is fine.

And the above is if you are from a country that gets visa-on-arrival. 

If you are from a country that needs to get visa in advance, then all things fly out of the window: if you apply for a visa, and then within a month do it, and then again, ICA will summarily reject the application and ask you to file a Form 14

So far, from what I know and seen, there is no form of multiple entry for those who come from countries which need visa in advance. 

Unlike, say Malaysia, you can get a 12 months multiple entry. For Singapore, in view of the various other options like Long Term, EP, PEP, etc. etc. there aren't any options like Malaysia

So, you fret and ask the HR to fix that part, if you are from a country that needs visa-in-advance.

if you are not from, fret not !!!

I know enough vendors and suppliers who are shutting between Singapore and Malaysia and Indonesia and Philippines and occasionally back to their HQ in Australia or Uk .. and they don't get hassled, as long as their passport is UK/OZ/US etc.


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## beppi

1. A Singapore work pass allows you to work and live in Singapore. If you don't work and/or live in Singapore, you don't need one.
2./3. There are no procedures/restictions by MoM for Singapore companies hiring foreigners abroad. Which "payroll" (which is just a company-internal thing) is of no interest to the authorities.

In addition:
Salary received for work performed abroad is NOT taxable in Singapore. It does not matter where/how this salary is paid (receiviung it into a Singapore bank account is fine).
The company is required to declare taxable salary to IRAS. Not or wrongly declaring is illegal.
In praxis, I got a letter from my employer stating that I was seconded abroad from ... to ... and sent that to IRAS. No questions asked.
Remark: It is likely that your salary is taxable in the country (-ies) you work in, and in most cases those taxes are higher than what you'd have paid in Singapore.


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## beppi

Another addition: If you travel to Singapore frequently on a visit visa (SVP) for long periods (you mention a month), they will deny you entry after a few times because they'll suspect you work illegally in the country.
You need to either stay abroad for two months or so after every one-month stay, or bring a letter from your company describing the situation and assuring that you won't do any work while in Singapore.


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## dannysao

*work in singapore tax*

Hi ntustudent
Your case - emploment in Singapore and payment into singapore bank.

I read the IRAS website, all income earned from singapore is taxable.

So you need to pay tax in singapore right..do you?

quote from iras website under foreigner
All income earned in or derived from Singapore is chargeable to income tax.


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## beppi

Dannysao: This is a very old thread - you are unlikely to get a response from the original poster.
In addition, as I wrote above, for Singapore taxability iot only matters where the work is performed, not whether the emplyment contract is under Singapore law or the salary is paid out in Singapore. I know this from own experience: Being sent to Indonesia by a Singapore employer, while my Singapore contract remained in force, pay transferred to my Singapore bank account and even CPF paid, I did not have to pay any Singapore income taxes for the period (as confirmed by IRAS). I did, however, have to pay Indonesian taxes, which are higher.


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## dannysao

*singapore tax*



beppi said:


> Dannysao: This is a very old thread - you are unlikely to get a response from the original poster.
> In addition, as I wrote above, for Singapore taxability iot only matters where the work is performed, not whether the emplyment contract is under Singapore law or the salary is paid out in Singapore. I know this from own experience: Being sent to Indonesia by a Singapore employer, while my Singapore contract remained in force, pay transferred to my Singapore bank account and even CPF paid, I did not have to pay any Singapore income taxes for the period (as confirmed by IRAS). I did, however, have to pay Indonesian taxes, which are higher.


Hi beppi
1. if indonesia tax is higher, why you dont chose to pay singapore tax?
2. you have no olbligation to pay indonesia tax right, because you did not get paid in indonesia. if you dont need visa to enter indonesia, you dont have to pay tax there right.
can I know if you are ask by Inland revenue of indonesia to pay tax there? I wonder how you pay tax in indonesia? what income you declare? your singapore income delcare in indonesia will be exploded in number...
3. do you have the iras link stated that you dont have to pay singapore tax? i browse through cannot find one..


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## beppi

dannysao said:


> 1. if indonesia tax is higher, why you dont chose to pay singapore tax?


You cannot choose where you pay tax. The regulations and tax authorities decide that.



dannysao said:


> 2. you have no olbligation to pay indonesia tax right, because you did not get paid in indonesia. if you dont need visa to enter indonesia, you dont have to pay tax there right.


Wrong!
In most countries (incl. Singapore and Indonesia) you have to pay tax on income earned for work in the country, no matter where it is paid or whether you were legally allowed to do that work.
All foreigners need work visa to be allowed to work in Indonesia.
I had one of course, declared my income and paid tax on it as per normal. The rates were of course higher than Singapore (which has one of the lowest income tax rates in the world). But at least I did not have to pay Singapore tax as well - in other countries (depending on local regulations) double-taxation is well possible (but hardly ever the opposite - no taxation).


dannysao said:


> 3. do you have the iras link stated that you dont have to pay singapore tax? i browse through cannot find one..


https://www.iras.gov.sg/IRASHome/In...is-Not/Overseas-Income-Received-in-Singapore/


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