# Australia to Singapore: Very very confused



## SGP here we come

Hi,

I am in my mid 30s living in Melbourne. ( Australian Citizen)

I have just been offerred a permanent role in FInancial Services Singapore. 

Offer made has been around $160k.sg + relocation + accomodation and medical.

I need opinions before I accept the offer from some of the Australian who are living there:

a) Do I get taxed in both countries?

b) I have 3 investment properties ( All negatively geared). Will I loose on all my year end refunds from Australian Tax Office?

c) Is there a way to transfer my mortgages to Singapore? Is it worth doing it knowing the intesert rate is less than half?

d) What bank do you recommend/suggest to set up the banking etc.

My wife and I are unsure of whether it is a good offer considering I earn a six-figure Salary in Australia. My idea to move to SGP is purely for work experience but dont want to be worse off with my current lifestyle.

Please help.

THanks


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## Singapore Saint

Hi,

I can't help you with the tax questions, but for the mortgage I know that RBS had some very popular offers for expats who transferred their mortgages on properties back home in the UK. No idea if a UK bank would cover properties in other countries, but if one bank does it, they'll probably all do it..


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## simonsays

take a walk through www.iras.gov.sg and they have specific info on the taxation .. and how to avoid double taxation ..


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## ats-aust

SGP here we come said:


> Hi,
> 
> I am in my mid 30s living in Melbourne. ( Australian Citizen)
> 
> I have just been offerred a permanent role in FInancial Services Singapore.
> 
> Offer made has been around $160k.sg + relocation + accomodation and medical.
> 
> I need opinions before I accept the offer from some of the Australian who are living there:
> 
> a) Do I get taxed in both countries?
> 
> b) I have 3 investment properties ( All negatively geared). Will I loose on all my year end refunds from Australian Tax Office?
> 
> c) Is there a way to transfer my mortgages to Singapore? Is it worth doing it knowing the intesert rate is less than half?
> 
> d) What bank do you recommend/suggest to set up the banking etc.
> 
> My wife and I are unsure of whether it is a good offer considering I earn a six-figure Salary in Australia. My idea to move to SGP is purely for work experience but dont want to be worse off with my current lifestyle.
> 
> Please help.
> 
> THanks


Hi,

I'm happy to give you the rundown on the various taxation issues that are facing you . . . I run an Australian Chartered Accounting and Taxation advisory business with a presence in Melbourne, Kuala Lumpur and Jakarta. We primarily focus on International taxation advice for Australian expatriates and Australian businesses operating principally in Asia.

There are a number of major issues that you need to consider in making your decision, particularly in light of recent changes to s23AG (which formerly provided Australian expatriates with an exemption from tax on their foreign employment earnings).

I'm happy to run through the various issues with you over the phone if you are interested - I think you will find this useful because it will give you a clear understanding of how both the Australian and Singaporean tax systems work in reference to your circumstances. 

So . . . If interested, please send me a private message containing your contact number along with an appropriate time for me to call and I'll follow up.

Regards

Shane


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## leone and john

SGP here we come said:


> Hi,
> 
> I am in my mid 30s living in Melbourne. ( Australian Citizen)
> I have just been offerred a permanent role in FInancial Services Singapore.
> Offer made has been around $160k.sg + relocation + accomodation and medical.
> I need opinions before I accept the offer from some of the Australian who are living there:
> 
> a) Do I get taxed in both countries?
> b) I have 3 investment properties ( All negatively geared). Will I loose on all my year end refunds from Australian Tax Office?
> c) Is there a way to transfer my mortgages to Singapore? Is it worth doing it knowing the intesert rate is less than half?
> d) What bank do you recommend/suggest to set up the banking etc.
> My wife and I are unsure of whether it is a good offer considering I earn a six-figure Salary in Australia. My idea to move to SGP is purely for work experience but dont want to be worse off with my current lifestyle.
> 
> Please help.
> THanks


We are also from Melbourne and have been here 4.5 years .... to start with, originally to be here 2 years, but we love the lifestyle and everything that goes with living in Singapore!

We earn 'approx' the same as in Australia, but as the taxation is so much less, it is in fact our savings. We only pay 10% here compared to 47% in Australia. 

When we first came here it was financially better, but with the strong Oz*dollar it makes it a little 'shaky' ... we no longer send money back to Australia as we lose 30% (min) .... so in effect our dollar is now worth less. :-(

But we are here for the global experience /*living in another country and learning other cultures... we are not here for any financial gain, though it would be extra nice. We are NOT on any expat package and recieve no benefits from 'the company' ... we pay our own way, own rent, power, phone etc.

You would need to check what they are offering in the way of accommodation... what is the ceiling on that. Cost of a decent 3 bedroomed apartment would be around $5000.00 - $7000.00 pm ... though we are in an older place, not near supermarket etc and we pay $3500.00. I would be asking for more .... 160 plus accomm, plus medical, plus relocation .... add in power/phone/a car if your feel desperate for one ...add in one months accomm in serviced apartments when you first arrive. Some expats even get their public transport fares paid!

Make sure ALL medical... not just a limit of say $500.00 .... that could be gone within a month. 

When we left Australia 4.5 years ago there was no such 'ruling' about tax to be paid in Australia, but we have heard since that IF you are here for 2 years or less ... ATO will be knocking on your door for the $$$. :-(

Our only issue now is that IF we were to return to Australia and sold our properties AFTER we arrived back there, we would be paying 'capitol gains' .... if we sell prior to returning we do not pay the capitol gains tax. We heard about this just two weeks ago from a tax man here.

If you have children, consider education costs too ... add that into your package. If no children... no problem!

lots to consider, but it is a great lifestyle ... one that you will enjoy. But do your homework and discuss all options.

my blog is at:

our life in Singapore

you may care to 'follow' it for added info, also some of the ones I 'follow' (listed on the side) are the blogs from Singapore ... all of them will be of help too.


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## B2O

leone and john said:


> When we left Australia 4.5 years ago there was no such 'ruling' about tax to be paid in Australia, but we have heard since that IF you are here for 2 years or less ... ATO will be knocking on your door for the $$$. :-(


This isn't entirely true. 

The ATO will expect you to pay tax in Australia if you return within 24 months and can't demonstrate that you intended to leave Australia permanently within that time. if you made an effort to leave the country (ie. selling your car, house, closing bank accounts etc.) but had to return for personal reasons, then the ATO will more than likely not be knocking at your door. 

If you kept the car, rented the house and happened to work in a country under a working holiday visa, this isn't really demonstrating that you intended to leave Australia permanently and the ATO would very much like what it believes is it's share. In saying that, they would allow you a tax credit for tax already paid...



leone and john said:


> Our only issue now is that IF we were to return to Australia and sold our properties AFTER we arrived back there, we would be paying 'capitol gains' .... if we sell prior to returning we do not pay the capitol gains tax. We heard about this just two weeks ago from a tax man here.


This too is incorrect. 

The ATO will only expect you to pay capital gains on the increase / decrease of the value of the property after you enter the country. ie. the sales value minus the value of the property when you entered the country. In most cases, if you sell the property within months of returning to Australia, the capital gains tax would be very little if none at all.


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