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Working remotely on overseas company while on DP

Posted: Mon, 29 Aug 2022 1:03 am
by akshu0023
Hi, I have gone through the forum but no clear specific answer on my query especially given May'21 law change.

I would be moving to Singapore on DP (behind my husband's EP). Can I continue to work for my European clients while in Singapore? My company has no Singapore office neither any of my clients are from Singapore. Would I need any other permits on top of DP? Any mail confirmation from MOM to continue to work for my overseas company? Thanks in advance.

Also, would I need to open an account in Singapore to receive Salary and declare tax here or continue with my account in my home country?

Thanks again for your valuable inputs.

Re: Working remotely on overseas company while on DP

Posted: Mon, 29 Aug 2022 5:23 pm
by sailtraveller
I don't believe Singapore taxes such foreign income, but you'll need to check with an International Tax Accountant.
The issue is not tax, the issue is the condition of DP - which might not allow you to carry out paid work in Singapore, without a relevant work pass. I checked the law and policies, but they're not 100% clear, as they focus on the perspective of a local company employing someone locally. Again it's best to check with MOM/ICA. This type of scenarios were not as frequent pre-COVID ...
While T&C of short term visas such as tourist visa or business visit visa are clear in regards to the inability of someone to perform paid work during their stay (independent to where the company they work for is registered etc., it's not explicit (that I can find ...) for DP.

Re: Working remotely on overseas company while on DP

Posted: Mon, 29 Aug 2022 5:59 pm
by sailtraveller
Btw - it seems you can after all:
viewtopic.php?t=141154

Re: Working remotely on overseas company while on DP

Posted: Mon, 29 Aug 2022 10:08 pm
by sundaymorningstaple
akshu0023 wrote:
Mon, 29 Aug 2022 1:03 am
Hi, I have gone through the forum but no clear specific answer on my query especially given May'21 law change.

I would be moving to Singapore on DP (behind my husband's EP). Can I continue to work for my European clients while in Singapore? My company has no Singapore office neither any of my clients are from Singapore. (Yes you can and you do not need a company nor a bank account or a work permit.) Would I need any other permits on top of DP? (No) Any mail confirmation from MOM to continue to work for my overseas company? (No, not needed-But if you want to go through the motions send them an email-it's be done a couple of times by members of this board in the past)Thanks in advance.

Also, would I need to open an account in Singapore to receive Salary (No) and declare tax here (Yes) or continue with my account in my home country? (either/or)

Thanks again for your valuable inputs.
However, IRAS and MOM are not the same. You do not need a work permit from the MOM. However you do have to report your earnings here on your local tax return as a self-employed person and report the income earned here. (There is where everybody get confused - If you perform the work here in Singapore, regardless of where the servers are located, you are earning your money in Singapore so therefore it is taxable to Singapore.

Re: Working remotely on overseas company while on DP

Posted: Wed, 31 Aug 2022 9:47 pm
by akshu0023
Thank you so much. This is really helpful. I also got the reply from MOM. Posting below for other members
"
A Work Pass will not be required when:

1) You are working for an overseas company while in Singapore.

2) The overseas company which you are working for is a separate legal entity from any related office that it may have in Singapore and your work has no linkage nor any interaction with the Singapore office.

3) You are not meeting or providing services to clients in Singapore.

Therefore, you may still perform work for your overseas employer remotely via telecommuting if all the above-mentioned requirements are met.

Otherwise, you will require a valid work pass"

Re: Working remotely on overseas company while on DP

Posted: Wed, 31 Aug 2022 10:15 pm
by sundaymorningstaple
We already know all that and it was also explained to you by us. This is a canned email response as the question has been asked many times.

Re: Working remotely on overseas company while on DP

Posted: Wed, 07 Sep 2022 2:50 pm
by Lochines
Hello!
thanks for below, i would like to know if you know the number of this law.
My husband under a DP is currently working freelance for a company outside of Singapore, with no ties to the country.
Do you know the number of the law? Does the IRA ask a letter to certify that the foreign company is outside singapore?
My doubt would be, how they will corroborate, do they need a letter of the foreign company saying that they don't have any business or services in singapore?

Best


akshu0023 wrote:
Wed, 31 Aug 2022 9:47 pm
Thank you so much. This is really helpful. I also got the reply from MOM. Posting below for other members
"
A Work Pass will not be required when:

1) You are working for an overseas company while in Singapore.

2) The overseas company which you are working for is a separate legal entity from any related office that it may have in Singapore and your work has no linkage nor any interaction with the Singapore office.

3) You are not meeting or providing services to clients in Singapore.

Therefore, you may still perform work for your overseas employer remotely via telecommuting if all the above-mentioned requirements are met.

Otherwise, you will require a valid work pass"

Re: Working remotely on overseas company while on DP

Posted: Thu, 08 Sep 2022 2:18 am
by Myasis Dragon
Lochines wrote:
Wed, 07 Sep 2022 2:50 pm
Hello!
thanks for below, i would like to know if you know the number of this law.
My husband under a DP is currently working freelance for a company outside of Singapore, with no ties to the country.
Do you know the number of the law? Does the IRA ask a letter to certify that the foreign company is outside singapore?
My doubt would be, how they will corroborate, do they need a letter of the foreign company saying that they don't have any business or services in singapore?

Best
There is no "number" of any law and you do not need to quote any law.

The law is simple. If you are a foreigner working for a Singapore company, you must have a work pass. If you are not working for a Singapore company, you do not need a work pass.

The reasoning is simple. If you are a foreigner working for a Singapore company, then you are potentially displacing a Singaporean, and the government wants to control that. But if you are working for a foreign company, you are not displacing any Singaporeans and the government doesn't care if you work remotely.

You must file taxes in order to be legal. Yes, some people will tell you that it is hard for the government to find income earned overseas, but remember, failure to pay taxes on your earnings is illegal.

Your spouse will need to get registered with ACRA so that he is in the system, gets notifications and gets the correct forms sent to him. He will need to write an email to [email protected] and explain his circumstances of employment.