Transfer Pricing Working Remotely from Singapore due to COVID If you have been exercising overseas employment but are now earnings remotely remotely from Singapore due to travel restrictions caused by COVID, earnings remotely are prepared earnings remotely treat you as not exercising an employment in Singapore, if you meet the conditions as set out below. If the period of your stay in Singapore did not extend beyond 31 Dec The qualifying conditions are: a There is no change in the contractual terms governing your employment overseas before and after your return to Singapore; and b This is a temporary work arrangement due to COVID If the above conditions are met, earnings remotely employment income for the period of your stay in will not be taxable in Singapore.
Otherwise, normal tax rules will apply to determine the taxability of your employment income for such period.
If the period of earnings remotely stay in Singapore extended to Besides conditions a and b above, the additional qualifying conditions are: c The work performed by you during your stay in Singapore would have been performed overseas if not for the travel restrictions caused by COVID; d You will earnings remotely Singapore as soon as you are able to do so before 31 Mar ; and e Your employment income earned during the stay in Singapore from 1 Jan to 31 Mar is subject to tax in the country of your overseas employer.
Condition d will not be considered as breached if the reason you continue working remotely from Singapore is due to the escalating COVID situation in the country of your overseas employer such as resurgence of cases and new strain of virus and there is an elevated risk of you contracting COVID should earnings remotely return to work overseas.
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If you meet all the conditions under a to eyour employment income for the period of your stay up to 31 Mar will not be taxable earnings remotely Singapore. If you meet the conditions under a and b but did not meet the additional conditions under c to eonly your employment income for the period of your stay up to 31 Dec will not be taxable in Singapore.
Normal tax rules will apply to determine the taxability of your employment earnings remotely for the period of your stay from 1 Jan to 31 Mar For example, you had worked in Singapore for 15 days and completed your short-term assignment on 6 March Thereafter, you extended your stay in Singapore due to COVID and you continued to work from Earnings remotely remotely for your overseas employer.
Nonetheless, the taxability of the employment income for your short-term assignment excluding the period of your extended stay is subject to normal tax rules.
In this example, as the assignment was completed within 15 days, which is not more than 60 days, the employment income for your short-term assignment will be exempt from tax. However, if you were given another business assignment in Singapore during your extended stay, the earnings remotely income for the period of your whole stay in Singapore for both assignments will be subject to normal tax rules.
Although the option to work from home has been growing in popularity, only 3. However, percent of the workforce is estimated to work from home multiple days a week by the end of Fortunately, employees are largely in favor of remote work opportunities. It is employers who have approached remote work skeptically — at least until recently when social distancing to flatten the curve from the Covid pandemic forced the issue. Employers are now realizing that remote work is not less productive than work earnings remotely an office.