Expert Info
on 13 Feb 2012
Hello, I have read lots of items on here and also done searches and i am still not 100% sure and want to ask some questions. I will be doing a 12 month placement in Singapore and travelling with my Wife. I will remain employed by my employer in Australia and subject to Australian Taxation. For lots of complex reasons i NEED to remain an Australian resident and pay tax in Australia. So as the income is being earned in Singapore i am subject to Singapore taxation. However from what i have read I should be able to apply for Tax Treaty Relief to avoid double taxation and therefore pay tax in Singapore on my income but then claim that tax as a deduction from my Australian tax. Can someone out there please confirm that my interpretation looks right and what forms myself and/or my employer need to fill in? Also my company will be renting "Corporate Accommodation" for myself and my wife and then i will be living there. The provision of this would not be subject to taxation in Australia however based on some of my reading it would be subject to taxation in Singapore - if my company rents the property who is liable to pay any applicable tax? The company or me? I appreciate that this is a forum and maybe nobody here has been in this direct situation in which case i need to keep doing my own research but I thought it couldn't hurt to ask! As well as providing accommodation my company is paying me a $1,500 a month "cost of living allowance" (which will also be subject to taxation). Given that i am pretty happy with my Salary in Australia does that sound like a good deal? I know it's a subjective thing but i just wanted an opinion... If the questions are directly answered elsewhere and i have missed it I apologise in Advance. Regards, Stephen
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Unfortunately I can not help you with the legal Tax information. Your situation sounds unique and complex so I suggest you speak to a Tax Consultant in this regard. I have not come across any advise on this matter before. Sorry I can not be of help.
Singapore is a decidedly tax-friendly country and if there's a double-taxation treaty in force here, you can be sure you won't be taxed twice.
That said, in some cases, depending on the country concerned, you may need to pay the tax up front, after which it'll be refunded upon submitting your Singapore tax documents. Again, in some coutries, this is the other way around. So you need to check your specific tax laws.
The $1,500 a month is a little sweetener your company is giving you, I gather, rather than full compensation for your living expenses, as most likely these will be higher than this in reality, because Singapore can be relatively expensive.
I'm not sure what you mean by "Corporate Accommodation" or how this would be taxable. Perhaps you could elaborate a little?
Regards,
Bryan
P.S. Apologies for the confusingg word-breaks; it appears there's a bug in the system here. I've already notified the tech department.
Incidentally, note that service apartments tend to be quite costly. If you're looking for alternatives, then consider the East Coast, as there are condo studio apartments here for rent from S$150 per day, a fair bit lower than service apartments.
Regards,
Bryan