Working over long distances

[telecommuter]

Hi,

I have an employment question I can't seem to figure out from the SIR site and several others.

If one is an employee at a U.S. company, but is allowed to telecommute (work at home, connecting to a corporate network over the Internet periodically),  are there any options for being physically located in Singapore?

Is this considered "working in Singapore?"
If one maintains a U.S. address and spends some portion of the year there, would that be a way around this?

I've noted that one is forbidden from working in Singapore on a Social Visit pass, for example.  Is doing work for your job at home considered "working in Singapore,"  even though the company has no Singapore office nor Singaporean employees?

I am trying to determine if I'd need an Employment Pass for such a situation,  and if  not, how I could manage to stay in Singapore most of the year.

Thanks for any thoughts!

[HNL]

I don't know much about employment pass, but I want to tell you about the tax nightmare you may get into.  If you work or LIVE in Singapore for over 183 days per annum you are a resident here and taxed as such.  Now, your employment income from the US sources--you MAY be able to claim that it is not Singapore-sourced, and avoid tax (normally this requires you phisically being abroad, though)--but whatever amount you remit into Singapore will be taxed even if it is foreign-sourced.  Do you really want to be taxed by both US and Singapore?

[telecommuter]

Thanks!  I hadn't thought of that.
I quick check of U.S. tax publications indicates I may be able to get away with an exemption of U.S. taxes for the first US$76,000,  as "foreign earned." The example specifically states I could be physically present in France for 330 days of the year, and even if my employer is in New York and pays my salary directly into a U.S. bank account, it still counts as "foreign earned" and I may get the exemption.

So I believe I'd pay full Singapore taxes and only be "double taxed" on anything over US$76,000.  But I'll need to do more research; thanks for bringing it up!

I am primarily concerned with the question of "how the heck can I stay in Singapore legally indefinitely?" while I do this?

[HNL]

I am afraid you probably are not eligible for that US exemption.  It is for people who physically and literally work abroad, not telecommuters.  (e.g. assigned to the Singapore office.)  US IRS will not want to grant you that exemption when your office and work are in the US.  I am pretty sure IRS's stance will be your income is derived from the US and therefore is taxable in full.  Now, if you are resigned to the tax thing, I am sure you can get a competent lawyer in Singapore and get an EP.  Singapore won't have anything to lose since they get to tax you on income they otherwise won't be able to touch.  They would be happy to oblige.