Tax on Expat Benefits

Posted by MrG (388 days ago)

We will be moving to Singapore soon and I am trying to find out if benefits such as housing, education & home leave are taxable in Singapore. I have looked at the iras website and cannot find this mentioned anywhere - but don't just want to assume that the value of these is not added to taxable income.

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Posted by London (317 days ago)

Hi, here are some info for you, clairification is at the "Source of Non-taxable income" wrt your question. However it is best for you to confirm with the IRAS officer due to individual unique circumstances or your personal tax consultant. Cheers.

Sg Tax:

A non-residents can avoid tax on any income derived from employment performed in Singapore when they work in Singapore for 60 days or less in a calendar year. This exemption does not apply to company directors. Non-residents are not subject to tax on income received from sources outside Singapore. An individual is a resident of Singapore if he or she is physically present or employed in Singapore for 183 days in the year before the year of assessment.

Sources of Taxable Income
Singapore's tax is based on territoriality. Thus, income tax is imposed on income that has a Singapore source or is remitted into the hands of a Singapore resident. The source of employment income is primarily determined by the location at which the services are rendered.

The following items represent the principal elements of gross employment income: salaries, wages, fees, commissions, bonuses, gratuities, cost-of-living allowances, foreign service premiums, tax reimbursements, allowances, fringe benefits and benefits in kind. Foreign investment earnings are taxable only when remitted in Singapore. Domestic investment earnings are taxable.

Sources of Non-Taxable Income

The costs incurred by an expatriate to move to Singapore for employment purposes are not treated as a fringe benefit and are not subject to tax. This benefit is limited to the first passage in and last passage out of Singapore. Direct reimbursement for moving expenses are not taxable, but cash allowances are, unless the recipient substantiates the expenses.

Likewise, a cash housing allowance is fully taxable; housing that is provided directly by the employer is only partly taxable. if an employee is provided with a flat that is rented in the name of the employer, the employee will be taxed on the lower of the annual value of the flat or ten percent of the employee's total remuneration derived from employment. Capital gains are not taxable.

Posted by bsawin (116 days ago)

Does anyone know about United States Taxes? I just switched contracts. I was on a US tax equalized contract in Hong Kong. I was still getting paid in the US and everything was straightforward. Now, I am in Singapore. Get paid in Singapore. Have a housing allowance (not case), car allowance (is cash) and my kids schooling paid for (not cash). Does anyone know if that stuff is considered income in the US and will have US tax liability for those benefits?