taxed 15 percent

[jhkim]

Need help!

I am leaving my company after working for 3 month sharp.

They required me to pay my tax before leaving to a new company so I agreed.

I just found out I was taxed at 15 percent of total income.

Only after 3 month, the tax amount due is equivalent to resident 1 year's tax(Assuming resident make 50,000/year).

I read in IRAS website that resident who worked more than 60 but less than 183 will be considered non-resident and taxed at 15%. If one works here more than 183, he/she will be taxed at a resident rate.

But I am not leaving Singapore. Will I be taxed at 15% forever or after 183 my tax will be same as resident and rest of the amoun over paid will be refunded?

Need help.

[Laura]

Only matter with your actual no of days working in singapore, not the no.of days you staying, is more than 183 days in total per calendar year, then you will be taxed at resident rate and you will get your tax refunded eventually. Otherwise, stragith 15% tax rate it is.

By law, you leaving the current job with you EP status (I assume), your company has to hold the amount of money to pay for your tax. I guess you can get refund when you do your tax in the end of financial year from your second job if you get one after this.

[riversandlakes]

from 0 to knowing something about my income tax liabilities, visit the iRAS website...

http://tinyurl.com/9cnh9

[jhkim]

Thanks laura...thank god I don't have to pay 15% of the total income at the end of the fiscal year.

I will just not pay a single cent from now on and then actually try to claim back my money at the end of the fiscal year.

By the way, it just have to be 183 days in Singapore not the actually working days according to their website.

Should be well over 183 days. I started my work on end of the june so should be safe. But I went to places for vacation and there is few days gap between jobs...errr...this is not good.

What is the fiscal year for taxing purpose? jan to Dec?

[riversandlakes]

i think that's also on the site. jan-dec i think, just by april needs to be filed?

[Laura]

hello, you are welcome, I am just glad I can help from my own experience.

You don't need to that pay tax at 15% rate

1. if you don't quit your 2nd job before the end of financise year, which is in the end of Dec this year

or
2. your working days for this 2nd job along with working days from this 1st job is more than 183 days in the same year, eg 2005.

I have been to their taxation office, was advised face to face, IRAS only counts actual your employed days tho.

And, as long as you work up to exact 183days, then you are safe in anyway.

Have you actually looked into this website ? If haven't, here it is again.

http://www.iras.gov.sg/ESVPortal/Home/index.asp

Be aware that your scenario could repeat in every calendar unless your status changes to PR or something.

[jhkim]

1. if you don't quit your 2nd job before the end of financise year, which is in the end of Dec this year

What do you mean by that? If I am still employed by the end of dec then I will be paying resident rate even though my working days did not reach 183 days?

[Laura]

oops,

I am confusing myself here.

nope, you still have to manage to build up your employed days is equal or more than 183 days no matter how.

[Carpe Diem]

People at IRAS are like at MOM: friendly and helpful. If you need any clarification or advice I would recommend you go there.

[riversandlakes]

IRAS people are friendly and helpful too?!

[Carpe Diem]

IRAS people are friendly and helpful too?!

Yes. Or I am a lucky man. 8)

[Harsha]

This message has been deleted by the user.

[spicegirl]

think you've got to stay a year between the first and third in which case a rebate can be claimed for the % of the first year

[Bremen]

IRAS people are friendly and helpful too?!

Very... You may need to wait quite a while before it's your turn (like at MOM) but once it's your turn they're very friendly and informative.

[riversandlakes]

Does that mean I'm liable for 15% tax because I started working here on August 22?!