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URGENT:need info about PR and all related things
Posted: Wed, 16 Sep 2009 1:04 am
by _beckham
Hi, I am new in Singapore and works now. I need all of your helps.
I am thinking of applying for PR and I still have some unanswered questions. Here they are:
1. Are my CPF contribution and company CPF contribution tax-free? Is that automatically set to be tax-free or do I need to tell my company? because my annual tax is arranged by my company.
2. Is my top-up to my cpf (beside my primary contribution) is tax-free? Is it tax-free for all 3 parts of the CPF (OA, SA, MSA) ??
3. Let say that I am a PR..for how long can I leave Singapore?
4. How long am I able not to work in Singapore when I am a PR?
5. When I am a PR and is working, I have to contribute to CPF. How about if I am a PR but let say I don't work anymore, should I also pay for the CPF?
6. I also read on ica website that U can apply PR if either U work here or U " have a lot of money ". For the case that U have a lot of money, should I also contribute to CPF?
Thanks a lot for your kindness.
Re: URGENT:need info about PR and all related things
Posted: Wed, 16 Sep 2009 5:34 am
by littlegreenman
_beckham wrote:Hi, I am new in Singapore and works now. I need all of your helps.
I am thinking of applying for PR and I still have some unanswered questions. Here they are:
1. Are my CPF contribution and company CPF contribution tax-free? Is that automatically set to be tax-free or do I need to tell my company? because my annual tax is arranged by my company.
Tax free. Once your PR formalities are completed you need to provide your employer with a copy of your entry permit and they will do the rest.
2. Is my top-up to my cpf (beside my primary contribution) is tax-free? Is it tax-free for all 3 parts of the CPF (OA, SA, MSA) ??
As mentioned, tax free.
3. Let say that I am a PR..for how long can I leave Singapore?
Technically until your re-entry permit expires. Should you get your PR through a Singaporean Spouse and you are under 40 you also have to have a look for the length of your exit permit should you leave for more than three months but this is negligible and more a pro forma thing.
4. How long am I able not to work in Singapore when I am a PR?
For ever. Your PR never expires. However your re-entry permit expires every 5 years and if you are not employed or super rich they might chose not to re-new it so you can't leave Singapore without losing your PR. As long as you stay in Singapore though you can chose to not be employed as long as you want to and as long as you can support yourself.
5. When I am a PR and is working, I have to contribute to CPF. How about if I am a PR but let say I don't work anymore, should I also pay for the CPF?
6. I also read on ica website that U can apply PR if either U work here or U " have a lot of money ". For the case that U have a lot of money, should I also contribute to CPF?
That depends on whether you have better investments lined up. CPF provides nifty returns BUT your money is locked away until your retirement.
Thanks a lot for your kindness.
You are welcome.
Posted: Wed, 16 Sep 2009 6:12 am
by sundaymorningstaple
CPF is only computed on earned income.
Posted: Wed, 16 Sep 2009 8:43 am
by Saint
sundaymorningstaple wrote:CPF is only computed on earned income.
Up to a ceiling of $4.5k per month on earned income
Posted: Wed, 16 Sep 2009 11:39 am
by onlyvictor
If you have too much money, can consider setting up an srs account to do retirement planning and reduce taxes. for more details need to check out iras website think shld be
www.iras.gov.sg
Posted: Wed, 16 Sep 2009 10:43 pm
by _beckham
Thanks a lot for all Ur quick responses..the answers help me a lot..
Anyway, sorry, I still want to make clear about the tax-free status for top-up CPF beside the normal CPF contribution. Because I took a look at CPF website and I found one article says that Ur top-up contribution will be tax-free only if U make it to Medical Account, but in another article, I found that the top-up will be tax-free (max $7000 -> contribution from my employer and/or myself) if I make it to Special Account.
Honestly, I am still confused about all the things related to PR..what do U all think? I guess that all of U have a lot of experiences related to these things..
Will it be better if I take it or not? What will be the advantages for me? Or maybe there are some "invisible" disadvantages about it? How about if I am planning not to stay for a long time in Singapore?
Thanks.
Posted: Wed, 16 Sep 2009 11:29 pm
by Saint
You say you are new to Singapore and just started working so applying for PR until you've been here for at least a year and probably 2 years is a waste of time to be honest. You don't mention your age so can't comment on NS liability.
By the sounds of your questions you really want to use PR as a short term investment plan rather than become a Permanent Resident?
Posted: Wed, 16 Sep 2009 11:37 pm
by littlegreenman
_beckham wrote:...How about if I am planning not to stay for a long time in Singapore?
Then please don't! It would be very disrespectful to take up PR in our country and get all the benefits that come along with it but then you do not want to contribute to society and live there. PR is for people who want to join the society and be a full member of it, not investors who want to save taxes. If you are planning on saving taxes just open an investment account with any bank in Singapore. All interest and dividends are paid tax free and there is no income tax on profits from speculating in equity.
Posted: Thu, 17 Sep 2009 12:53 am
by ksl
_beckham wrote:Thanks a lot for all Ur quick responses..the answers help me a lot..
Anyway, sorry, I still want to make clear about the tax-free status for top-up CPF beside the normal CPF contribution. Because I took a look at CPF website and I found one article says that Ur top-up contribution will be tax-free only if U make it to Medical Account, but in another article, I found that the top-up will be tax-free (max $7000 -> contribution from my employer and/or myself) if I make it to Special Account.
Honestly, I am still confused about all the things related to PR..what do U all think? I guess that all of U have a lot of experiences related to these things..
Will it be better if I take it or not? What will be the advantages for me? Or maybe there are some "invisible" disadvantages about it? How about if I am planning not to stay for a long time in Singapore?
Thanks.
Quite frankly there are differences a PR is nothing special at all though many feel privileged, though they do have more benefits than anyone else, that are not a citizens that is. But apart from that, what is it you are looking for?
Posted: Thu, 17 Sep 2009 3:35 am
by sundaymorningstaple
Good thing I'm on holiday or I might be tempted to jump back in here with both feet - waders & all!
Posted: Thu, 17 Sep 2009 8:20 am
by Saint
sundaymorningstaple wrote:Good thing I'm on holiday or I might be tempted to jump back in here with both feet - waders & all!
I think there are plenty of others that can fill your waders in the mean time
Posted: Thu, 17 Sep 2009 8:30 am
by sundaymorningstaple
I'm counting on it.
Posted: Thu, 17 Sep 2009 6:37 pm
by _beckham
Ok..first I never say that what I want to do here is only for getting PR..my primary purpose is to WORK!!
In fact, I can't understand some of U say that CPF is an investment..well, I can say it's something like U save some money in the government. U will only get interest and maybe tax-free..that's it
And also I don't see why one person said that it's disrespectful.
First, which one is better? U save Ur money in banks or U save Ur money in CPF? which one helps others the most? U save Ur money in banks, they will use it for their own purpose..U save Ur money in CPF, government can use it to help its people
Second, if U said based on the time..what's the difference between short time/long time/till U are retire..in fact, the money in the CPF will get back to U again, government will pay U back..so, what's the difference?
Third, when U give Ur money to contribute to CPF, government will use it and U can't, so, is it wrong if we want it to be tax-free?
Well, maybe I am wrong, tell me if I am wrong.
Posted: Thu, 17 Sep 2009 7:07 pm
by ProvenPracticalFlexible
_beckham wrote:
In fact, I can't understand some of U say that CPF is an investment..well, I can say it's something like U save some money in the government. U will only get interest and maybe tax-free..that's it
What else do you expect than guaranteed capital plus interest? Free cup of tea and cookies? Other difference is of course that you money is in more reliable hands than the commercial banks, as many have experienced recently.
_beckham wrote:First, which one is better? U save Ur money in banks or U save Ur money in CPF? which one helps others the most? U save Ur money in banks, they will use it for their own purpose..U save Ur money in CPF, government can use it to help its people
Second, if U said based on the time..what's the difference between short time/long time/till U are retire..in fact, the money in the CPF will get back to U again, government will pay U back..so, what's the difference?
Third, when U give Ur money to contribute to CPF, government will use it and U can't, so, is it wrong if we want it to be tax-free?
Well, maybe I am wrong, tell me if I am wrong.
Yes, You're wrong. Happy now?
I'm not really sure what you're even asking, but recommend that you read the basic information from
http://mycpf.cpf.gov.sg/Members/home.htm
It is actually your money, there's a huge difference if you compare it to the pension systems in developed western world.
Posted: Fri, 25 Sep 2009 4:04 pm
by econoMIC
_beckham wrote:...And also I don't see why one person said that it's disrespectful. ...
Just have a look what I wrote above. I gave you the reasons why, with rights come responsibilities. Leaving the country a short time after obviously doesn't enable you to carry out your responsibilities ie. that would be taking without giving back.