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Whether DP holder can do job for his home country?

Posted: Fri, 16 Jan 2009 2:09 am
by cracktojack
Hi,

I am coming to Singapore on EP and my wife is coming as a DP holder. She is working in India and her Indian company wants her to work over VOIP phone and mails from singapore.

1. Can she work like this? She won't be getting any income in SG as her salary will deposited in indian savings account in INR. Or she need to apply for any other visas?

2. whether DP holder can do freelancing?

Re: Whether DP holder can do job for his home country?

Posted: Sat, 17 Jan 2009 9:32 am
by ksl
cracktojack wrote:Hi,

I am coming to Singapore on EP and my wife is coming as a DP holder. She is working in India and her Indian company wants her to work over VOIP phone and mails from singapore.

1. Can she work like this? She won't be getting any income in SG as her salary will deposited in indian savings account in INR. Or she need to apply for any other visas?

2. whether DP holder can do freelancing?
Yes they can work freelance outside of Singapore on a DP, providing the payment is made outside of Singapore and she fulfils the Indian tax regulations and laws, it should be okay, that apply. Be careful if their are residence rules, like the 183 days, she may break them if here, and i have no idea of any impact in India, none, i don't think, providing her tax is paid.

Posted: Sat, 17 Jan 2009 9:50 am
by sundaymorningstaple
Actually, ksl, if she is working for an foreign company that is not registered here in Singapore she can even receive her money here in Singapore without running afoul of any laws. She doesn't need to file a tax return here either and she can do it all on a dependents pass or whatever pass she has with no problems at all (wasn't always like that though - I learned this recently as a results of another query on the board and I checked it out and can confirm it.

Posted: Sat, 17 Jan 2009 2:54 pm
by Saint
sundaymorningstaple wrote:Actually, ksl, if she is working for an foreign company that is not registered here in Singapore she can even receive her money here in Singapore without running afoul of any laws. She doesn't need to file a tax return here either and she can do it all on a dependents pass or whatever pass she has with no problems at all (wasn't always like that though - I learned this recently as a results of another query on the board and I checked it out and can confirm it.
Now I didn't know that. So Mrs S is working freelance for her old UK company which isn't registered here and gets paid directly into her Singapore Account. So she doesn't have to file a SG tax return? Or is it different being a local?

Posted: Sun, 18 Jan 2009 2:02 am
by ksl
sundaymorningstaple wrote:Actually, ksl, if she is working for an foreign company that is not registered here in Singapore she can even receive her money here in Singapore without running afoul of any laws. She doesn't need to file a tax return here either and she can do it all on a dependents pass or whatever pass she has with no problems at all (wasn't always like that though - I learned this recently as a results of another query on the board and I checked it out and can confirm it.
That's good news!

Posted: Sun, 18 Jan 2009 11:52 am
by sundaymorningstaple
I hope I haven't spoken too soon. Let me get back to that as I can't find the email from IRAS when I queried them several months ago. I will query them this week and check on the taxability. It may be on my office computer but I have to check....... So lets not go off half-cocked..... :oops:

thanks

Posted: Sun, 18 Jan 2009 2:31 pm
by cracktojack
thank u all for your reply.... it relived me a bit... :)

Posted: Wed, 21 Jan 2009 5:56 pm
by sundaymorningstaple
I was wrong. I must have been thinking about MOM instead of IRAS. Anyway.........

Here is the skinny straight from the horses mouth as it were:
Dear SMS

Regardless of whether an individual is holding a work pass or dependent pass, he/she is subject to tax in Singapore if services / work is rendered in Singapore. Under Section 12(4) of Singapore Income Tax Act, all gains or profits from employment exercised in Singapore are deemed to be derived from Singapore. Thus, if the services of an employee are performed in Singapore, the employment income is treated as having a source in Singapore. This is regardless of where the contract is concluded, where the income is received, who the employer is, or where the employer is located.

As such, your mentioned employee's wife who is working for a company not registered in Singapore is subject to tax in Singapore. For more information on tax treatment of an employee employed by a foreign company not registered in Singapore, please visit our website at http://www.iras.gov.sg/irasHome/page.aspx?id=1192

If she is working in Singapore on the capacity as an independent professional, i.e. not an employee of a company, withholding tax may be applicable if she is a non-resident for tax purposes. For details, please refer to http://www.iras.gov.sg/irasHome/page.aspx?id=3462

She may contact us directly via email at [email protected] if she need further clarifications. Please advise her to provide us her FIN number shown in the dependent pass.

Thank you.


Yours sincerely

Yap-Tay Lee Imm (Mrs)
Senior Tax Officer
Foreigner & Clearance Branch
for Comptroller of Income Tax
So there you have it. Assuming your wife will still be employed by an Australian company, you will still have a tax liability to Aus. unless there is some sort of tax treaty between Singapore and Australia. Otherwise, she is liable for taxes. Full Stop.


UPDATE: Working for an overseas non-Singapore registered company while on a Dependents pass does not need any other employment pass.

From the MOM:
Dear Sir

We refer to our tele conversation on 22 January 2009.

You may wish to note that a work pass is not required for Dependant Pass
holders working remotely at home for overseas company that is not registered
in Singapore.

For more information, you may visit MOM's website at www.mom.gov.sg.
Basically, we don't care if you work from your home for an overseas company BUT we want our share of taxes because we are being soo nice to you. :-|

sms

Posted: Thu, 14 Mar 2013 4:09 am
by goldenarms
I am currently in a similar situation. My wife was offered employment and I will be living on a dependent pass. The company I work for in Canada wants me to continue working remote from Singapore. Reading this thread it seems like this isn't an issue? It it from 2009 though. I can't seem to reach anyone from MOM to ask.
Any help is greatly appreciated.

Thanks!

Posted: Thu, 14 Mar 2013 9:10 am
by Strong Eagle
goldenarms wrote:I am currently in a similar situation. My wife was offered employment and I will be living on a dependent pass. The company I work for in Canada wants me to continue working remote from Singapore. Reading this thread it seems like this isn't an issue? It it from 2009 though. I can't seem to reach anyone from MOM to ask.
Any help is greatly appreciated.

Thanks!
Here's the deal... the only way you make this work is to work online, from your home, and deposit all your earnings in Canada. You will not be subject to Singapore tax... indeed, you will not even report anything... under the radar, as it were.

Or... as a DP, you create a company, get a LOC, get paid in Singapore and file your taxes here instead of Canada.

If you are not "present" in the Singapore marketplace, that is, if you do not do anything that ends up in Singapore, then do the first thing. For example, I managed my properties from Singapore, properties in the US, including buying and selling... none of this ended up on my Singapore return.

Posted: Mon, 18 Mar 2013 8:44 pm
by goldenarms
Thank you for your reply,
I have been told that before as well. I was just concerned about going that route and was hoping there was a "legal" way of going about it. But this seems to be the way to go.
Thanks again!

Re: Whether DP holder can do job for his home country?

Posted: Fri, 04 Sep 2020 12:31 am
by Phototos
DP holder here.

I have an opportunity to work contract jobs as an Art Director in Singapore. It would just be a few days work and I would need to invoice for services. If all goes well, my contact has more clients he could pass to me. Invoices would likely be paid from Singapore registered companies.

Can I invoice as a personal proprietorship as a DP holder on jobs worked in Singapore?

In many cases these jobs would come too fast to obtain an LOC.

I would prefer to hold off on setting up a company until I know the contracts come often enough; as I was told the government expects tax on a min. amount even if no money is collected, plus other yearly business expenses.

Thanks to everyone who posted above.