Singapore Expats

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

What did the IRAS officer tell you.

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

Minke wrote: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.

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).

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.

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

blessedone wrote: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.

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.