Income tax for SPR travelling more than 180 days a year

[Minke]

Does anyone know if a Singapore PR working in Singapore will get a lower tax rate or other tax reliefs if he/she travels more than 180 days a year? I have my own company in Singapore and I am traveling a lot for this business. Called to IRAS but wasn't very convinced what one junior tax officer told me. Thanks

[sundaymorningstaple]

What did the IRAS officer tell you.

[Minke]

IRAS officer didn't fully understand my question and said that I will need the normal income tax even I would travel more than 180 days a year because I am a PR, not a foreigner

[Saint]

IRAS officer didn't fully understand my question and said that I will need the normal income tax even I would travel more than 180 days a year because I am a PR, not a foreigner

Which is correct, the 183 day rule doesn't apply to PRs as you are classed as a local, not a foreigner.

[sundaymorningstaple]

You weren't misinformed. The 183 day rule is only applicable to non-residents. You really don't want to fall under that one as then you would pay taxes at a flat rate of 15% on your gross income. Bad news. Treated as a resident, you are subject to the normal graduated tax rates enjoyed by all citizens (which mean the first 20K is tax free).

[blessedone]

I have a similar problem and I have posted here about it - - http://forum.singaporeexpats.com/ftopic86899

Wanted a clearer understanding of the response here-
You weren't misinformed. The 183 day rule is only applicable to non-residents. You really don't want to fall under that one as then you would pay taxes at a flat rate of 15% on your gross income. Bad news. Treated as a resident, you are subject to the normal graduated tax rates enjoyed by all citizens (which mean the first 20K is tax free). Wink

Are we saying that being a PR the person is treated as local and hence the taxes applicable are those of a resident and calculated as directed here - http://iras.gov.sg/irasHome/uploadedFil ... 1_IRAS.xls

Kindly clarify.

[sundaymorningstaple]

[blessedone]

I was just asking for a clarification to make sure I understand this right.

[zzm9980]

I was just asking for a clarification to make sure I understand this right.

PRs pay the local tax rate:
http://www.iras.gov.sg/irasHome/page04.aspx?id=1190

From your other thread, I assumed you made so much money that the 15% flat rate would be advantageous and you were trying to game the system. Now I know you just didn't read the IRAS instructions.

[blessedone]

I missed seeing this totally - one line made all the difference.

Different tax rates apply for tax residents and non-residents. You will be treated as a tax resident for a particular Year of Assessment (YA) if you are a:

Singaporean; or
Singapore Permanent Resident (SPR) if you have established your permanent home in Singapore; or

thank you for your help.