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ExpatSingapore Message Board 26 May 2012, 9:17:02 am *
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Author Topic: What to expect? No clue...  (Read 1349 times)
Rambo
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« on: 02 January 2001, 16:46:00 pm »
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Hi Everyone,

I am about to be recruited as a management consultant to work in Singapore. This means that I will have to relocate from Europe. What shall I expect to receive in return from the company (including relocation costs)? Shall I expect a housing allowance, and about how much shall I expect to get paid?

The company is a global one and there are currently several other expats working in their Singapore office.

Please help me out here. I really need some guidance to avoid getting stuck with a poor deal. All input appreciated!!!

Cheers,

Rambo  

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ExpatSingapore Message Board
« on: 02 January 2001, 16:46:00 pm »
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AR
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« Reply #1 on: 03 January 2001, 0:57:00 am »
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Since you work for a global company and have other employees working here, I'm sure they already have the expat policy and benefits. My husband's company has theirs detailed on their website. Do expect housing allowance, home leave, and car allowance.

My husband's company is quite generous. We live up with the car allowance and save the whole salary (no change). Calculating the money they give us (eg. furniture allowance, living expense differential...), it's like he makes 3 years salary on 2-year assignment.

Tax equalization is very important and complicated. Make sure you pay the same tax as you were in your home country.

Ask your HR, they should have all the answers.

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Rob
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« Reply #2 on: 03 January 2001, 8:56:00 am »
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Given that Singapore tax rates are a lot lower than most places ( UK, US, Australia certainly) I would have thought that the last thing you want to do is ensure that you pay tax at the same rates as at home - wherever that may be
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Mark D
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« Reply #3 on: 03 January 2001, 9:29:00 am »
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Rambo

I am a management consultant working for a global firm in Singapore. I relocated here after working for 2 other global firms in UK and Australia. If you e-mail me with more details about your experience and current salary I will be happy to offer what advice I can about salary levels and other benefits.

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AR
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« Reply #4 on: 03 January 2001, 9:32:00 am »
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Rob,

Since we are on a 2-year assignment, we don't pay the local taxes. As matter of fact, his pay is deposited into our account in the US. What I know about the tax equalization is that the company pays the excess taxes, that were incurred in the expat package, for you. Otherwise, we would have had to pay a hug amount of taxes and we wouldn't have decided to come here.

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Paul N
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« Reply #5 on: 03 January 2001, 9:44:00 am »
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AR,
It is my understanding and experience that you DO pay SNG taxes.  You made the money while in SNG, you pay the taxes.  We are in the same situation, pay being deposited in a US account, but we still pay SNG taxes (actually the company does as a component of tax equalization.)


Rob,

As a US citizen, you pay US taxes no matter where you go, less the Foreign Earned Income Exclusion (Currently =US$75000.)

Tax equalization is a good deal for us here in SNG as it keeps us from paying tax on the amount over 75K in addition to SNG tax burden.  For someone in the 6 figure world, it can make a huge difference.  If you are under 100K, run the numbers, you may be better off paying remainder and SNG taxes yourself.

[This message has been edited by Paul N (edited 03-01-2001).]

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Rob
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« Reply #6 on: 03 January 2001, 10:03:00 am »
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Paul, So you are tax equalised DOWN to the Singapore level, not UP to the US level?..this was my point I think
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Paul N
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« Reply #7 on: 03 January 2001, 10:06:00 am »
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Nope, we pay equivalent of US taxes.  Just don't have to pay both at full bore.
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Rob
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« Reply #8 on: 03 January 2001, 10:19:00 am »
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OK, finally got you Apologies for being so slow. Didn't occur to me that you could actually end up paying more than US tax..
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az
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« Reply #9 on: 03 January 2001, 10:30:00 am »
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xixi...  banker can't count  Tongue
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Mark D
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« Reply #10 on: 03 January 2001, 12:44:00 pm »
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Since you are from Europe one thing you do not need to worry about is paying US taxes.

It is impossible to say how much you should expect to be paid, since this depends on (1) your level & experience (2) the type of firm you work for (e.g. strategy boutique vs. Big 5) (3) your functional expertise and (4) how much your employer wants or needs you to move. Consultant salaries range from ~$40k pa for Analysts fresh from Uni to $500k+ for Senior Partners / Directors. As mentioned above, if you e-mail me with more details I will offer what advice I can.

Regarding tax, you will be liable for local Singapore tax if you spend more than 60 days in a tax year working in Singapore. Tax rates here are considerably lower than Europe and if you convert your current package to S$ you will end up with considerably more money in hand than you do now.

My understanding of tax equalisation is a policy whereby your remuneration is geared to provide an equivalent standard of living in Singapore post-tax to that you have in Europe. This can get quite complicated depending on how this is calculated. As a much simpler rule of thumb, if you multiply your UK salary (plus car allowances, pension, etc) by the current exchange rate (approx 2.5) then you would have a better standard of living in Singapore than the UK, with the exception that you may need to get by without a car, which is not difficult here.

The only particular tax break I am aware of is to have part of your package put aside as rental allowance rather than salary. This is only taxed at 10% rather than your marginal rate assuming (a) the lease is in your employers name rather than yours and (b) the employer pays rent DIRECT to the landlord. All other benefits (car, school fees, etc) are treated as salary and taxed as such so it makes no difference tax-wise (to yourself)whether you get a bigger salary and pay for them yourself or whether your employer pays them out of your package.

For relocation you should be recompensed for all legitimate expenses involved in moving. Try to get the employer to pay direct rather than reclaiming it from them. Two things you should include apart from the obvious are the 2-months deposit you will need to put down on an appartment  and the one-term school fees deposit for any kids going to private schools.

Finally do not assume that your local HR department will necessarily have all the right answers or act in your own best interests. Its always best to get independent advice, as you are doing.

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Rambo
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« Reply #11 on: 04 January 2001, 5:17:00 am »
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Thanks a lot for your input!!

I will e-mail you Rob.

Cheers,

Rambo

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err
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« Reply #12 on: 04 January 2001, 8:50:00 am »
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hey there, you probably should be MARKing D rather than ROBbing...
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Can I look?
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« Reply #13 on: 04 January 2001, 11:55:00 am »
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To AR,

Can you put your husbands employer's website (URL link...) here to review the MNC's typical employment T&C's as it would be interesting to review and see what a firm's policies are for comparison purposes?
Thanks.

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AR
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« Reply #14 on: 04 January 2001, 12:23:00 pm »
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To Can I look?,

The website of expat policies and benefits is inside of their firewall. It can't be viewed from outside of the corporate network. I can't help you with that.

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