Taxation of Indian moving to Singapore for employment
This query is : Open
25 April 2020
India citizen transferred to Singapore on Feb 01, 2020 and earns salary in SGD post transfer. Singapore follows calendar year as FY. No TDS is applicable in Singapore and tax is paid post assessment i.e. around May 2021. Also Singapore employer is not required under local laws to issue any salary certificate.
1. Since he is tax resident in both India and Singapore for Feb and March 2020, is he liable to pay taxed both in india and Singapore in terms of Article 15 of DTAA.
2. Will india give DTAA credit or Singapore?
3. If answer to 2. is India, How can he claim double taxation relief U/s 90 for AY 2020-21 since there is no actual tax paid in Singapore during time limit for filing return in india u/a 139(1).
4. How to update/declare from 67 that list taxes 'paid' in foreign country.
5. Time limit for filing form 67 is as u/s139(1), in case a revised return is filed can form 67 be filed with revised return.
6. If answer to 1 is no, how to declare non-taxability of foreign salary in ITR2 and form 67.
7. Any other declaration to be made or any certificate to be obtained from either country.
1. Since he is tax resident in both India and Singapore for Feb and March 2020, is he liable to pay taxed both in india and Singapore in terms of Article 15 of DTAA.
2. Will india give DTAA credit or Singapore?
3. If answer to 2. is India, How can he claim double taxation relief U/s 90 for AY 2020-21 since there is no actual tax paid in Singapore during time limit for filing return in india u/a 139(1).
4. How to update/declare from 67 that list taxes 'paid' in foreign country.
5. Time limit for filing form 67 is as u/s139(1), in case a revised return is filed can form 67 be filed with revised return.
6. If answer to 1 is no, how to declare non-taxability of foreign salary in ITR2 and form 67.
7. Any other declaration to be made or any certificate to be obtained from either country.
26 April 2020
1 He is tax resident only for India. Read full article. Taxable only in india.
2 No need.
3 No tax payable in Singapore.
4,5 and 6 Doesn't arise.
7 No other declarations required.
2 No need.
3 No tax payable in Singapore.
4,5 and 6 Doesn't arise.
7 No other declarations required.
26 April 2020
Thank you for your opinion. Could you please help with relevant provision of DTAA to help understand your reply to pt 1.
26 April 2020
Article 15.
2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the firstmentioned State if:
a. the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the relevant fiscal year.
2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the firstmentioned State if:
a. the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the relevant fiscal year.
26 April 2020
Sir, as I understand clause a,b,c are 'and' clauses, where by b&c donot meet as salary is paid by Singaporean company.
Thus even though clause a is true but as b&c donot meet the requirements, income cannot be taxed in first mentioned state (india).
Please advise if this interpretation is correct or how should we interpret the section 2 as a whole?
Thus even though clause a is true but as b&c donot meet the requirements, income cannot be taxed in first mentioned state (india).
Please advise if this interpretation is correct or how should we interpret the section 2 as a whole?
27 April 2020
Your interpretation is not correct.
Taxation of Employment Income
Salaries, wages and other similar remuneration in respect of employment will be subject to tax in the country in which the employment is exercised. However, the employment income will be subject to tax in the recipient’s country of residence and not the contracting country in which the employment is exercised under the following circumstances:
The individual spends 183 days or less in the country in which employment is exercised for a given fiscal year.
Taxation of Employment Income
Salaries, wages and other similar remuneration in respect of employment will be subject to tax in the country in which the employment is exercised. However, the employment income will be subject to tax in the recipient’s country of residence and not the contracting country in which the employment is exercised under the following circumstances:
The individual spends 183 days or less in the country in which employment is exercised for a given fiscal year.
22 May 2020
I feel as rightly pointed out by Mr Kumar, Paragraph 2 of Article 15 gives 3 conditions which needs to be satisfied simultaneouly to make his income post 1 Feb 2020 taxable in India. Resultantly eve if any of the conditions is not satisfied then such income shall be taxable in Singapore. In this case even though condition a is satisfied, but condition b and / or c is not satisfied. So the income earned by such a person in Singapore, due to his servies in Singapore, from a Singapore resident employer is taxable in the hands of such person in Singapore only.
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