Being consultant v payroll lacky

[hackette]

I am working offshore for a singapore company as a consultant. For various reasons, i wanna work for them in singapore. Rather than put me on the payroll in singers when i arrive, they have surprised me by suggesting that i work for them as a consultant when i am here, by setting up my own sole proprietorship. this is do-able as i can get a local sponsor, but i am not clear of the ramifications of consultant versus being employee on their payroll. Presumably the company saves money because it doesn't have to provide me with health benefits etc.  Would I have to pay a higher tax rate as a consultant rather than employee? but could this be offset by the fact that use of car, use of flat for business could be written off as expenses/depreciation etc? Wot do u folks think?

[Consultant - It Depends]

If you are a Singapore Citizen or PR then the company will have to pay employer's CPF for you. Otherwise they won't.

There are things you can claim against tax if you are a business rather than being an employee, but you would need to check what they are.

My guess is that if you are not a Singapore citizen or PR, you would be better off registering as your own business - but I'm not an expert on this.