• All blog entries
    • Calculators
    • Case studies
    • Cost of living
    • CPF Are You Ready?
    • CPF Matters
    • Credit Management
    • e-Learning
    • Estate Planning
    • Events
    • Financial advisers
    • High Networth
    • Insurance
    • Investments
    • Letters to the Press
    • Magazines
    • Others
    • Retirement Planning
    • Scams
    • Surveys
    • Tragic Stories
    • Unethical sales process
    • Videos
  • Legal
  • Testimonies
    • Individual testimonies
    • Gallery
  • My Account
Hi, looking for a fee-based financial planner in Singapore? Read this article now!
  • Home
  • About
    • About Wilfred Ling
    • Wilfred Ling from Client to Adviser
    • Why do you run your own professional financial planning practice?
  • FAQs
    • FAQs on Wilfred Ling’s Financial Services
    • FAQs on Financial Planning
    • FAQs on Investments
    • FAQs on Insurance
    • FAQs on Estate Planning
  • Services
    • Overview
    • Retirement Planning
    • Investment Portfolio Management
    • Insurance Planning
  • Fees
  • Cool Tools
  • Contact
  • Subscribe
You are here: Home / CPF Are You Ready? / Singapore’s Taxation Advantage

Singapore’s Taxation Advantage

2, November 2010 by Wilfred Ling Leave a Comment

There are the two principal tax systems - source jurisdiction and residence jurisdiction. Source jurisdiction or sometime known as territorial tax system refers to a country that taxes income as a source within its borders.

Some countries may also impose tax based on residency, called residence jurisdiction, whereby all income (domestic and foreign sourced) is subject to taxation.

Singapore practices territorial tax system. This means that a Singapore citizen who works in Singapore is only taxed for his Singapore source income. He is not taxed by the Singapore government for foreign source income such as property rental in another country.

On the other hand, a United States citizen or resident is being tax for his income on a worldwide basis.

And you know what? Only three of the 37 jurisdictions with income taxes have territorial-based systems (Hong Kong, Singapore, and Taiwan). This is one of the advantages of being a Singaporean. I brought up this point because many Singaporeans migrate without finding out about the new countries’ tax system. A most famous one is Australia which practices residence jurisdiction in its tax system. Many Singaporeans who migrated to Australia got a shocked by its draconian tax system. They thought that pasture is greener “the other side” but was not prepared for a system that tax one’s income on a worldwide basis.

The lesson? Educate yourself to financial freedom because nobody cares for you except yourself.

This article also appeared on CPF Board's IMSavvy blog corner:http://www.cpf.gov.sg/imsavvy/blog_post.asp?postid=410028623-163-8277094363

Like this article? Subscribe to my newsletter below for more.

Get regular Tips on Financial Planning. Free subscription for 3 years. Covers all aspect of financial planning such as 'How much salary you should have?', 'How to avoid insurance that is not suitable?", 'What are the retirement planning methods?", etc

Share this:

  • Tweet
  • Print

Related

Filed Under: CPF Are You Ready?, Others

What do you think? Leave a comment. Cancel reply


WILFRED LING, CFA

WANT TO GET REGULAR TIPS ON FINANCIAL PLANNING?

JOIN with thousands of other subscribers in getting tips on all aspect of financial planning such as "What is the minimum salary required?", "How avoid insurance that is not suitable", etc.


WILFRED LING IN THE NEWS

Click HERE to find out more.


THE KIND OF CLIENTS I AM LOOKING FOR

NEW TO US?

Learn how you can fully benefit from this massive website: HERE

For Registered Users Only (free)

  • iFAST Monthly Investment Update -July 2020 7/7/2020
  • Navigator Newsletter_June 2020 (36 pages) 19/6/2020
  • iFAST Monthly Investment Update -June 2020 (21 pages) 9/6/2020
  • Fortitude Budget – Save, create jobs and be post-pandemic ready 28/5/2020
  • Navigator Newsletter May 2020 (44 pages) 22/5/2020

View All

For Clients Only

  • JPMorgan Guide to Market Q2 2020 15/4/2020
  • JPMorgan Perspective Q2 2020 15/4/2020
  • JPMorgan Guide to Market Q1 2020 5/2/2020
  • JPMorgan Perspective Q1 2020 5/2/2020
  • PPAM Quarterly Market Outlook 1Q2020 (17 pages) 1/2/2020

View All

Top Posts

  • Strange way of how CPF Interest is calculated & retirement planning CPF has a rather strange way of calculating interest. I...
  • CPF: How to Accumulate $1m in your CPF by 57? I read from the CPF’s AREYOUREADY facebook about a man...
  • Vanguard funds in Singapore at just US$ 20,000! Vanguard is the world’s most famous index fund provider...
  • Access Information & Sign Up Page
  • How financial advisers are paid? This article is inspired by this article YOUR PRACTICE-...

Recent comments

  • LittleTiger on Nomination in insurance policies
  • Josephine Pek on Nomination in insurance policies
  • chonghoong lim on Strange way of how CPF Interest is calculated & retirement planning
  • Jeremy Tan on Strange way of how CPF Interest is calculated & retirement planning
  • Janice on CPF Retirement Sum Scheme
  • Duskerdawn on Strange way of how CPF Interest is calculated & retirement planning

To be notified of new blog post, like this facebook page

To be notified of new blog post, like this facebook page

Read articles based on different categories

Investment Login

iFAST Central: Login

iFAST Prestige: Login

Navigator: Login

Chartered Financial Analyst

CFA
5 years milestone in Continuing Education

Chartered Financial Consultant

ChFC

Featured Blogger

IM$avvy
© Copyright 2006-2021 Wilfred Ling. All Rights Reserved hollow-nasty
hollow-nasty
hollow-nasty
hollow-nasty