As one of the world’s financial centers, Singapore attracts many American expats to work and live. Whether you are looking to get into the stock market, invest in a property or start an offshore company, it is important to not only be in compliance with the IRS, but also make sure you maximize your deductions and take advantage of the foreign income exclusions and credits available to you. Our team of US expat tax specialists can help you with this. Each year we represent many Americans living in Singapore with issues involving the IRS and international tax filing. This includes problems with offshore investments from CPE, AIA, Fundsupermart and other investment institutions, as well as foreign rental property income and FATCA/FBAR reporting. Contact our team to schedule a consultation.
Do US Citizens and Green Card Holders in Singapore have to File Taxes?
Virtually all US citizens and green card holders are required to file a federal return each year, regardless of where they reside. For Americans living abroad, this is usually a simple process, but there are several different types of returns that may be necessary depending on your situation.
For example, Married Filing Separately American tax service Singapore HTJ.tax expats typically require a joint return. Those filing as Single or Head of Household are generally required to file a separate form. In addition, those with income that exceeds certain thresholds must file an FBAR (Report of Foreign Bank and Financial Accounts) using FinCEN Form 114.
In some cases, Americans living in Singapore are subject to double taxation. This can occur because of the country’s territorial tax system, which only taxes income earned in the city-state. However, expats can use rules like the Foreign Earned Income Exclusion or the Foreign Housing Exclusion to reduce this issue.
It is also important to note that the U.S. does not have a tax treaty with Singapore, which can make it harder to avoid double taxation. As such, it is essential that you discuss your situation with a specialist to determine what options are available to you.
The Inland Revenue Authority of Singapore is the governmental agency that handles all tax-related matters in the city-state. Its main goal is to ensure that Singapore residents pay the correct amount of tax based on their circumstances.
The agency is responsible for collecting tax, enforcing the law and providing guidance to taxpayers. It is also the governing body that oversees the nation’s social security programs and pensions. In addition, the IRAS is tasked with researching new methods of taxation and making changes as needed to keep up with global trends. The agency is also responsible for setting budgets for the government of Singapore. As of this writing, the top tax rate in Singapore is 17%. This makes it an attractive place for businesses to establish operations, as the economy benefits from lower taxes. The IRAS has also established a number of special incentive schemes to encourage foreign companies to set up shop in the country.