EP vs PR

[awl]

Hi! I've been working here for over a year and I've been thinking about applying for PR. I'd like to get some views on the pros and cons of getting a PR. I'm aware of:

Pro - If your company closes down or you quit, you will not go on social visit pass.

Pro - You can get the company contribution of CPF if it's not already worked into your salary.

Con - Less take home pay due to CPF deduction.

Also, if I were to switch jobs, do companies pay you more because you a viewed as an Expat (EP) vs a local (PR)?

I don't think I'll stay here forever, at most a few more years. In the long run, I'll most likely go back to Canada.

Any comments?

Thanks

[Pr]

Some companies will cut down totally/partly your housing allowance if you will become a PR here. So you would need a better contract to cover up that. This is certainly no rule but mentioned in some company policies.

[Pros & Cons]

I know a few pros and cons, but most of them only make a real difference if you intend to stay here for some time (whereas you say you will be leaving in a few years). Still, FYI:

Cuts down on hassle if you decide to change jobs (Employment Passes are tied to the jobs, so you would have to reapply if you quit).
PRs can buy resale govt. flats if they apply with a Sg citizen.
PRs can bring their parents in to stay on a Long-Term Social Visit Pass (EP holders can only do this if they have P passes).
Children of PRs will be PRs.
School fees (local) for children who are PRs are much, much cheaper.
PRs become eligible for the child-care subsidy (if they send their child to child-care while they work)
Children will become eligible for govt. scholarships (considered quite prestigious).
PRs by application will not have to serve national service, but their sons, as second-generation PRs, will.

I did some research on this a while ago, so it should be mostly accurate. The benefits seem to be greater for those with families.

Hope you find this useful.

[Angel#1]

If you are PR and pay the CPF it doesn't start at 20%, it increases gradually.  This is offset against taxable earnings too.

However, you can get your CPF contributions back when you leave but pay tax on them then.  At least it's not "lost to you" like your NI is if you contribute in the UK or Europe!!  I know some people who use this as a savings method (low rate of return!) taking the view the tax would have been payable on the amount had they not paid it into CPF, it's just the timing which is different!

Out of interest, how many people here have taken out PR as a protection in case of redundancy (ie you have longer to stay in sgp to find work afterwards, not the 2 weeks and bye bye)?

Also, I thought all EPs were P passes, P1 or P2, and that DPs and WPs were the ones who couldn't get a long stay visitor pass for deps and rellies.  Anyone?

[jed]

PR -PRO- somewhat cheaper kids schools fees;
      - dont have to leave if lose job.
   CON- kids will have to do natl. service.

EP can put into CPF and withdraw it when they leave.  
     

[Taxed on CPF??]

Angel - is it true they tax you on the CPF when you go? This could be a big hit! Can you minimise it by getting it paid out over two tax years or more?  I thought it was non-taxable as long as you declare you'll never come back.

[Angel#1]

Well I have to say I heard this from a friend who was considering PR, but it makes sense as the CPF contribution is deducted from taxable earnings before tax is calculated.  So, if it's excluded then you must pay tax on it when you withdraw it.  Otherwise, wouldn't all expats arriving here tell each other to pay CPF then withdraw it on departure just as a tax avoidance mechanism??

(In the UK, contributions to a pension scheme are tax free, but tax is deducted if you withdraw the amount before retirement)

perhaps someone with more tax know how could help?

[jimmy]

I think PR is better, and i just gotta PR.
Beware that West Malaysian cannot draw their CPF money until... 55 or 60 (not sure).

I was holidaying for 4 mths (Previously EP, then social visit pass) until I gotta my job and PR. most employers dont wanna trouble of applying EP (they dont understand the procedure well). However, it only took me about 1 week+ to get my EP approved. FYI, SIR/EP+PR dept is very helpful also.

[awl]

Thanks for everyone's feedback. I just got my PR. (It took about 4 hours at SIR and I still have to go back again to get my blue card). One thing they don't tell you until after getting the PR, if at all, is that if you die, Singapore has rights to your kidneys (unless you register your objection to the Ministry of Health). Muslims are exempt for religious reasons.

[travelling north]

I have heard that when travelling up to Malaysia, Singapore passport holders sometimes get held up a long time in the lines going through Malaysian immigration, whereas other passport holders can make it through quick. Would having PR have a similar effect when travelling North, if anyone has experience of this?

[Considering PR]

awl, how long did it take between your application and the approval - just two weeks? I heard it could be up to three months, is there any general rule on that?

[evehow]

My husband is a Malaysia and Singapore PR.  At the customs, depending on which passport he uses (the blue Sin-Mal one or the red international one), he takes the Malaysia queue or queues with me.

There're special lines in the Malaysian customs for Malaysian Passport, Singapore Passport, and Others.  The Singapore line is usually the longest but clearance is not that bad.  If you're using your home country passport, you can just take the Others lane; no need to join the Singapore queue.

[awl]

Hi "Considering PR",

It takes 2-3 months after you submit your info. You will receive 3-4 more forms to fill-out and spend half a day processing these forms at SIR. Then you wait a week and go pick up your blue card.

[Considering PR]

Thanks "awl". I had noticed that the time span between your original post and your last one was two weeks, that's why.

[Jeni]

Awl, how long were you on employment pass before you applied for PR?