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Guidelines For American Expats On Fulfilling Tax Obligations

As Singapore faces the second half of the year, more and more US nationals are heading to Singapore for work and business. This happens too in the wake of the Eurozone debt crisis and looming slowdowns in America and China. For Americans planning to relocate to Singapore, here are some of the things that you need to do in order to stay in the country:

As an American expat living in Singapore, one must be able to file their taxes in the US as if they were living in the US. The thing about filing this on time is that you get to qualify for tax incentives and deductions. Also, tax liabilities would depend on your income gained throughout the world, not just in the states.

Qualifying for a Foreign Earned Income Exclusion (FEIE) means you have to a resident of a foreign country (other than Singapore) and be able to file your taxes for your home country. Couples who are married and live in Singapore can file for this exclusion jointly.

Income that is excluded from the tax are those earned as an employee or contractor in Singapore and as long as it is within Singapore. Those taken from investments, however, are not exempted from US taxes.

Another thing that is interesting to tackle is the definition of “foreign” for taxation. According to the Internal Revenue of Singapore, the foreign income of US expats includes those that are received only beyond the US territories. Expats can only qualify for an FEIE income exclusion if they have lived in a foreign country for a whole year or a minimum of 330 days within a year.

Singapore has entered a tax treaty with the United States which means expats are relieved of the burden of double taxation. All expats have to do is file their Form 1116 or 1118.


Do you need help in filing your individual tax? Please click: Singapore Accounting and Tax Services