8/01/2010

CATCH 183

Well well well ... For me to restart writing?? It should be something too important or irresistible ne? So, here it comes...
As the general knowledge goes.. I have been working with an MNC for the past 3months as a sub-contract engineer. And being a star performer, a proactive team member and etc etc .. the management decided to end my contract asap and convert me to a permanent staff.. See.. Good resources don't come by so often naa ;)
Stopping with the boasting now and getting to the real matter..
Me and my current employer were pretty pleased with the offer and things were going smooth. Things were all set for the transfer. On the day prior to the transfer, I went to their office to complete the relieving formalities. I get the last pay slip, have a look at it and I felt like my heart even forgot the promise of beating rhythmically!! The figures seem to be around less than 1/3rd of my salary.
What happens is, in Singapore, if you are leaving the job within 183 of commencement, the employer is supposed to file the tax on behalf of me. Doesn't matter if you are switching jobs or leaving the country. Rules are the same !!
My tax will be assessed as if I am a non-resident. And the tax rate is 15%!!!
Woah! I hadn't seen that coming. Turns out even my employers hadn't speculated it.
Suddenly I got very interested in the tax matters and stuff. My mind said..
Go and save yourself ... Google it out girl!!
Guess what! All the stuff happening is clearly stated in the Inland Revenue Authority's website.
http://www.iras.gov.sg/irasHome/page04.aspx?id=274

As with the predictable Singapore, help lines to the rescue
http://www.iras.gov.sg/irasHome/page.aspx?id=2374

But, my employer assured me that, there should be some way to get a refund of this amount as I am continuing to work in Singapore. Maybe be by the end of the financial year !!!
The kind IRAS official over the phone reassured me that as soon as (1) my ex-employer has remitted the tax on my behalf and (2) I have entered the new job, I could submit a request to IRAS to reassess my tax as a Resident.
For that I need to get certificate of employment from the new place and fill out the Form No.15 [Request for Tax Reassessment from 'Non-Resident' to 'Resident' Status] found in this link: http://www.iras.gov.sg/irasHome/page.aspx?id=848
Seems I need not wait for 183 days to apply this! Good for me :-)

Have to drop a word of thanks to my ex-employer who made a great effort on my behalf and arranged finances for me so that the tax stuff won’t be a burden upon me.

But then, as somebody told someone ... "Ignorance is never an Excuse"!! So, better be prepared and take care of the 183 days if you come to Singapore for a short term assignment on a local payroll.

Now, when that is settled, let me start finding ways to sort out the tax refund I am eligible from Japanese and Indian governments!!

2 comments:

Shanks said...

Thanks for the Info. Hopefully I spend more time in Singara than the 1.8.3.

I repeat Hopefully - Sometime !

U_Kno_Who said...

Ofcourse you will buddy. You have a long long way to go and singapore may just be one among the stops :)