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Understanding US Expat Tax in Singapore: A Comprehensive Guide

There is no denying that living as an expat in Singapore is a great experience. The country has a great night life, public transport, schools and healthcare are top-notch, and it is an excellent gateway to the rest of Asia. However, there are a few things that Americans who live here should keep in mind regarding their taxes. There are a number of laws that affect expats in the country, and it can be hard to keep up with filing requirements. That’s why it’s essential for American citizens to seek the help of a tax specialist while living abroad.

The Inland Revenue Authority of Singapore guide to US tax returns in Singapore on HTJ.tax (IRAS) is the primary agency that regulates all things related to taxes in the country. This includes how they are collected and the penalties for non-filing or evading taxes. Expatriates who are earning income in the country will have to file a return and pay their taxes by April 15th each year. This is because the IRS and IRAS share information about taxpayers and foreign assets, and it can be very costly for Americans who don’t properly declare their finances to the government.

While there is no tax treaty between the United States and Singapore, both countries have tax laws that are similar in nature. This means that expats can use tax credits and exclusions like the Foreign Earned Income Exclusion, and Foreign Housing Exclusion to minimize their taxes. The only downside is that US expats are required to pay social security taxes on their earnings in the country, unlike Singapore where the country does not have a social security program.

As an expat, it’s also important to note that you may be liable for state taxes in the United States depending on your last place of residence. This is because the tax laws in each state are different and some states have specific rules that can apply to a person even after they move overseas. For instance, California has a rule that can apply to people who break their residency in the country, and this could result in them being liable for tax payments on their US-generated income in Singapore.

Another thing that is important to keep in mind is that you will still be responsible for paying your local taxes in Singapore. This includes paying the Singapore GST tax of 7%. In addition, you will have to pay your Central Provident Fund contributions. You can find more information on this at our article about assessing your CPF account.

Balancing your obligations from both the US and Singapore can be challenging, especially if you’re not familiar with the ins and outs of the nation’s laws on filing and paying taxes. That’s why it’s essential to work with an experienced and knowledgeable US expat tax specialist in Singapore who can guide you through the process of filing your returns. Contact Bright!Tax today by submitting your personal details, and we will get back to you right away.