Singapore is a popular country which is widely acknowledged for low crime rates, cleanliness, lucrative business opportunity, and rich culture. It is the positive attributes of this country which make it an attractive destination for expats. If this attractiveness compels you to join the 1.3 million population who have chosen to be the expats in Singapore, make sure you hire the professional US taxation services Singapore to understand how your tax obligation will be affected. Only an experienced expat tax pro can guide for expatriate taxation norms and help you file your returns timely and with accurate numbers.
Below is the list of the norm that you will cover with the expertise of US tax accountant in Singapore and can spare your productive time to grow your business, instead of focusing on tax filing complication.
Responsibility Of US Taxation Services Profession
- Make You Aware Of Your Taxation Eligibility As An Expat
Being a citizen of the United States, you are required to report your worldwide income every year, regardless of the country you reside in. This is the very less-known information which only a tax expat tax professional can guide you and also protect you from listing under the category of tax defaulter.
- File return on your assets
In addition to the income tax return, as an expat, you’re also required to compute the assets you hold in foreign bank accounts with Foreign Bank. This is really a tough job you’ll have to bear aside, looking over to your business sales and revenue.
This is where USA expat tax services Singapore come into the picture to rescue you by filing an informational return on your assets held in foreign bank accounts and other essential account reporting (FBAR) Form 114 which is mandatory.
- Protect From Filing Double Taxation
Singapore expat tax is not an easy term which you can overcome in one day. It needs knowledge and passion to stay updated with tax rules and regulations. There’re many exemptions has been granted to expats which they’re not familiar with and as a result of their unawareness they file double taxation, including:
- Foreign Earned Income Exclusion- In this norm, only a qualified expatriate elected to exempt a certain amount on their tax return as revealed every year.
- Foreign Tax Credit- If US citizens reside in another country and become eligible to file tax returns in the foreign country, he/she will likely be eligible to claim the credit for the foreign income taxes on their US income tax return.
- Foreign Housing Exclusion- It allows for additional exclusion to the expat to exclude some housing expenses from their US expat taxes, in excess of certain country-specific amounts.
These are certain exclusions which many expats are still unaware of but hopefully, with this guide, they will nourish the accurate information and understand the importance of hiring a pro taxation professional when decides to live abroad.