Home » Blog » Taxing time for US expats in Singapore?
Here is an interesting statement from a recent news report:
“tax experts say they are getting queries from United States citizens and US green card holders in Singapore, wanting to come clean over income they have not declared.”
With the Obama administration cracking its whip on US tax evaders, Americans residing in Asia are waking up and smelling the coffee. It is their last chance to avoid criminal prosecution and penalty of unimaginable amounts, as the Sep 23 deadline for voluntary disclosure of undeclared income is fast approaching. Many of the 15,000 odd Americans in Singapore are frantically looking up tax experts to salvage themselves.
As per US tax law, “if you are a U.S. citizen or a resident alien (green card holder), the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside.” This could take quite a toll on US expats working overseas, as they not only have to pay taxes overseas but to the US as well. As an escape route, many are even considering giving up their US passport according to this news report.
In stark contrast consider Singapore’s attractive personal income tax system. Not only does Singapore offer low personal income tax rates but also exempts overseas income from being taxed (except under certain circumstances). This includes overseas income paid into a Singapore bank account. So will Singapore see its US expats give up their citizenship and opt for a Singapore passport instead?
BTW, expats who need help with their US tax filling matters are welcome to contact us for assistance. We work very closely with our US based partner – a CPA firm that specializes specifically in international tax matters for expats living overseas.
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