Posted: Thu Jun 28, 2012 12:45 pm by kgpp
Hi, guys. I am here to seek advice on how to address my issue.
I have a contract with a foreign company to provide business consultancy service. I am supposed to work as a freelancer. The foreign company will pay into my local bank account (Singapore) on a regular basis. I am holding LTVP, sponsored by my Singaporean husband.
This foreign company doesn’t have a local office here. Thus no EP will be applied for me by them.
And I also know the regulations that LTVP holder is not eligible to set up sole-proprietorship, either.
What can I do to take this job forward?
Thanks a lot for any constructive point in advance. [size=12][/size]
Posted: Thu Jun 28, 2012 3:45 pm by sundaymorningstaple
As long as your work does not interact with Singaporean residents nor companies registered in Singapore you are free to do so without an Employment Pass or Company/Business.
However, you are still required to file Tax Returns on the income derived here in Singapore (e.g., all the work you perform for your foreign employer) unless you can show evidence that you have filed and paid taxes on that income in your home country or tax residence. This could be offset depending on whether or not there are tax treaties in effect between the two countries as well.
It is Singapore Inland Revenue’s contention that tax will have to be paid somewhere so if you, working offshore for an employer in your home country, (who doesn’t have a presence in Singapore) don’t pay taxes in your home country (due to being out of the country) then you WILL be liable to pay taxes on that income to Singapore. (Singapore doesn’t tax it’s citizens on income earned outside the country)
Clear as mud?
Posted: Thu Jun 28, 2012 3:46 pm by beppi
You can’t legally do any work on an LTVP. Full Stop.
Even if you get the new LTVP+, which allows work on LOC (given by MOM), you could only work for Singapore-registered entities.
Posted: Thu Jun 28, 2012 5:34 pm by Strong Eagle
Your only alternative is to create a business, probably a private limited. You then apply for an EP through the business.
Historically, this has worked for people who:
a) Are bringing an existing business to Singapore
b) Are skilled in the line of work they are doing
c) Have contracts or income streams out of the gate
It used to be easy to get an Entrepass, easy to form a company and get an EP. But, far too many people with far too little skills, experience and money were abusing the system to get into the country.
You should search the threads for “entrepass”… there is quite a bit of information, including those who have successfully created a company. Your company then bills your foreign company and receives income in Singapore.
About the only way to do it, I’d say. Just make sure that you have lots of documentation, and lots of patience.
Editor’s Note: All postings taken from Singapore Expats Forum
Employment of Long Term Visit Pass Holders
Long Term Visit Pass (LTVP) holders who wish to work in Singapore and have found prospective employers will need work passes to do so. Applications for work passes (Employment Passes, S Passes or Work Permits) must be made by the prospective employer to Ministry of Manpower. Each application would be assessed on its own merits. However, these LTVP holders are not allowed to work in objectionable occupations such as dance hostesses, masseurs, etc.
Applications for an Employment Pass or S Pass will be assessed based on prevailing criteria (i.e. educational qualifications, salary, occupation, and experience).
Applications for a Work Permit (WP) will depend on the LTVP holder’s relationship to their sponsor:
- If they are a parent/parent-in-law of the sponsor, they must be from an approved source country and meet the prospective company’s dependency quota. The foreign worker levy will apply.
- If they are a spouse or unmarried child of the sponsor, there is no need for foreign worker levy to be paid. Their employment will not be counted towards the company’s dependency quota. They do not need to be from an approved source country.
*For employers who have already recruited this group of foreign workers on WPs before 1 October 2008, you must write in to the Work Pass Division before the levy and quota concessions can be extended to your firm/company. The levy concession will only start on the 1st of the following month after the Work Pass Division has verified the relevant documents.
(Taken from MOM website)