Job Hunting in Singapore

Professional Mariner Forum
25

[QUOTE=LI_Domer;173488]So how much would an unlimited mate make.[/QUOTE]

How good are you at bargaining??

There are a lot of Ship Management Companies in Singapore managing ships for Owners and speculators from all over the world, so there is no one answer. If you are looking at regular Shipping, I would think the Maersk example would be a guideline, since they are all recruiting from the same man power pool. Although some are looking at quality and others only at lowest cost, so there will still be a large gap in what they will offer/accept.

For Offshore vessels it will depend on the type, size, level of sophistication of the vessel and the type of work it is intended for, as well as area of operation. (No set Union wages, it is an international business)

26

[QUOTE=tugsailor;173487]I did know an American mariner that was working in Singapore. He lost his job in the offshore downturn and is now working back in the US. He was getting $1000 a day 90 on / 90 off. The employer treated him as a contractor and required and him to set up an LLC. The LLC opened a local bank account. The employer paid his “contractor fee” to the local LLC with no taxes taken out. He had his LLC paid him a salary, upon which he paid US taxes. He had to pay US taxes because he did not stay out of the US for 330 days per year. He keep some of the untaxed money in his local LLC which he ended up investing in foreign real estate. This is just one of the many ways that a US citizen can open a foreign bank account and collect a fee for his services overseas without having to pay US taxes on all of the money.

It certainly is true that the IRS has made personal foreign banking almost impossible for US citizens in most countries.[/QUOTE]

I forgot; Although his “Contractor Fee” was paid to a local company he owned, as long as that company paid him a salary he would have had to pay Singapore taxes of that salary. Not as high as US taxes, but still.

Yes, he could offset the S’pore Tax against his US tax, since he maintained his residency in the US.

27

Google ‘London mayor US taxes’ for news articles that humorously explain the tax and financial problem of Americans living and working abroad.

The mayor of London was born in New York. His family returned to England when he was five. By all accounts he is a Briton. He hasn’t lived in the United States after pre-school, or worked or owned property in the United States. He aspires to be Prime Minister. Yet the IRS billed him for unpaid taxes on the sale of his London apartment because, as an American, he must pay.

Or Wiki ‘Foreign Account Tax Compliance Act’ for a dry explanation.

28

[QUOTE=DeckApe;173492]Google ‘London mayor US taxes’ for news articles that humorously explain the tax and financial problem of Americans living and working abroad.

The mayor of London was born in New York. His family returned to England when he was five. By all accounts he is a Briton. He hasn’t lived in the United States after pre-school, or worked or owned property in the United States. He aspires to be Prime Minister. Yet the IRS billed him for unpaid taxes on the sale of his London apartment because, as an American, he must pay.

Or Wiki ‘Foreign Account Tax Compliance Act’ for a dry explanation.[/QUOTE]

Is this what makes America exceptional?? ALL other OECD countries tax residents living and working in the country, regardless of Citizenship (I believe IRS does to??)

NO other OECD country tax their expat citizens for income not earned in the country and capital gain not returned to the country.

American Citizens Abroad, Inc., (ACA) a not-for-profit organization claiming to represent the interests of the millions of Americans residing outside the United States, asserts that one of FATCA’s problems is citizenship-based taxation (CBT). ACA calls for the U.S. to institute residence-based taxation (RBT) to bring the United States in line with all other OECD countries.

The dilemma is not only with foreign banks apparently:

Foreign banks don’t want to offer accounts for Americans living abroad, because they’re Americans, and the IRS may come calling. Meanwhile U.S. banks don’t want the accounts of those Americans, because they live abroad.

Ha ha! You lose again! Genius.

29

[QUOTE=ombugge;173489]Yes a lot of money is believed to be stashed in foreign countries by US Corporations and very rich private US citizens.
As we agree they can afford to hire the best Bankers and Lawyers that money can buy to help them keep their loot safe.

My questions are;

  • How much has IRS managed to recover relative to the cost to taxpayers?
  • How much does it cost in time and money for foreign banks and finance institutions to comply with this unilateral requirement?
  • How much grievance has this caused to the many US citizens that live and work abroad?

Since several thousands have renounced their US citizenship only this year so far, the answer to the last must obviously be; considerable.

Yes, as Tugsailor point out, there are ways around tax rules, but for somebody who live in a foreign country without the financial possibilities (or knowledge) to establish a limited company, it is difficult to manage normal day-to-day finances without a local bank account.

To set up a Pte. Ltd. Company in Singapore is quick and easy and 100% foreign ownership is allowed. That is NOT the case in all countries. I would think that another reason he needed to do so could be that he needed an Employment Pass to work in Singapore. (I did so, before I became Permanent Resident)

FYI: One of the largest Banks in Norway has stopped handling cash over the counter at ALL their Oslo outlets. The last one in Oslo closed last week:http://www.thelocal.no/20151030/norways-second-bank-to-refuse-cash-from-monday )

If you want to draw or deposit cash you have to use an ATM, which requires a Bank Card, which requires an account.
In other words; No Card, No Money. Consequently; No Money, No Honey.[/QUOTE]

The US tax system is antiquated, inefficient, and hopelessly corrupt. The US is at a huge disadvantage with virtually all of its trading partners because it has failed to harmonize its tax system with those of its trading partners. This puts American citizens at an incredible disadvantage.

As mentioned, the US has the highest cost (but only average quality) healthcare in the world. We in effect subsidize the cost of healthcare for the rest of the world. We are probably the only “advanced economy” with employment based health insurance. This makes Americans high cost employees and puts American companies at a big disadvantage.

Americans, including Norwegian-Americams and Greek-Americans, are among the worlds largest shipowners, but it’s nearly all flag of convenience shipping with no seagoing jobs for Americans. The US flag and American mariner’s will have no significant role in world shipping until the US tax system is harmonized to treat shipping companies and Mariners in a similar way to everywhere else in the world.

The IRS managed to scare Many Americans into paying taxes on money stashed overseas, but this was basically a one time gain. That’s over. A lot of the US tax and financial rules for income and money overseas are actually aimed at drug traffickers and terrorism. Ordinary American citizens who wish to work, invest, or do business overseas are victims caught in the crossfire of these draconian rules. Foreign banks and employers have been forced to reach the conclusion that dealing with Americans (and then the IRS) is more trouble than it is worth.

31

[QUOTE=ombugge;173493]
NO other OECD country tax their expat citizens for income not earned in the country and capital gain not returned to the country.
[/QUOTE]

Germany taxes global income. Regardless, for most countries, tax treaties ensure no double taxation. I’d rather pay at US rates than German or Norwegian rates, thank you very much, and mariners signed on a ship (by tax treaty) usually pay tax in country of residence …

However, I note my Brit sea going expat colleagues have a very sweet no tax deal.

32

[QUOTE=tugsailor;173487]I did know an American mariner that was working in Singapore. He lost his job in the offshore downturn and is now working back in the US. He was getting $1000 a day 90 on / 90 off. The employer treated him as a contractor and required and him to set up an LLC. The LLC opened a local bank account. The employer paid his “contractor fee” to the local LLC with no taxes taken out. He had his LLC paid him a salary, upon which he paid US taxes. He had to pay US taxes because he did not stay out of the US for 330 days per year. He keep some of the untaxed money in his local LLC which he ended up investing in foreign real estate. This is just one of the many ways that a US citizen can open a foreign bank account and collect a fee for his services overseas without having to pay US taxes on all of the money.

It certainly is true that the IRS has made personal foreign banking almost impossible for US citizens in most countries.[/QUOTE]

US tax would have been applicable on all the income, including that not taken as pay… risky strategy.

33

[QUOTE=+A465B;173500]US tax would have been applicable on all the income, including that not taken as pay… risky strategy.[/QUOTE]

I’m not a tax expert so this could be totally possible, I really doubt it. If it’s a foreign registered company then the company wouldn’t owe us taxes, just the owners salary would be taxable. The company would owe taxes to Singapore though.

34

It’s complicated since, though it’s a foreign registered company, the single shareholder is an American citizen. You’re probably right that it would just owe Singapore corporate income tax, but there may be US laws designed to combat shell companies designed to hide earned income overseas, which this basically is. It’s probably not completely on the up and up but he probably won’t ever get nailed for it.

35

[QUOTE=LI_Domer;173509]It’s complicated since, though it’s a foreign registered company, the single shareholder is an American citizen. You’re probably right that it would just owe Singapore corporate income tax, but there may be US laws designed to combat shell companies designed to hide earned income overseas, which this basically is. It’s probably not completely on the up and up but he probably won’t ever get nailed for it.[/QUOTE]

But as far as I know there’s nothing illegal about that. Nissan USA is a wholly owned subsidiary of a foreign company but I expect they pay US taxes not Japanese taxes on corporate income since the company is in the US and not in Japan.

Also, I’m assuming he actually incorporated as opposed to forming an LLC, if Singapore even has those, because the unique income structure of an LLC would likely make 100% of the company’s income taxable in the US.

37

[QUOTE=LI_Domer;173509]It’s complicated since, though it’s a foreign registered company, the single shareholder is an American citizen. You’re probably right that it would just owe Singapore corporate income tax, but there may be US laws designed to combat shell companies designed to hide earned income overseas, which this basically is. It’s probably not completely on the up and up but he probably won’t ever get nailed for it.[/QUOTE]

There is no illegality or companies like Halliburton and the thousands of other “US” companies and individuals would not put money in Grand Cayman or other places.[Truth be known many drilling companies keep money in tax haven countries quite legally.] Presidential candidates in the USA have been known to take advantage of these laws.There is nothing illegal about an individual forming a LLC or corporation in any country they please as long as they obey the laws of that country. That same individual can be an employee of that LLC/Corporation and be paid a salary in the USA by that LLC. He must of course pay tax on any money he is paid in the USA. The money remaining owned by the foreign LLC is subject to tax in the country in which it resides. The City of London, Bermuda, Grand Cayman and many others have favorable treatment for these companies. It is not cheap to set up these LLCs or maintain them so one would have to have an above average amount of income or money to make it worth ones while.

38

First, I need to find my foreign job, then I’ll worry about the taxes.

If you stay out of the US for 330 days in any 12 month period, there is no US tax on the first 100,000 anyway. There are lots of nice places to spend your time off outside the US. Plus, you get a tax credit for any foreign taxes that you may have paid. So probably little if any US tax due.

it does cost something to set up foreign LLCs and trusts, but it’s not unaffordable.

39

It’s extremely difficult to actually police policies like this but things like the Foreign Account Tax Compliance Act (FACTA 2010) try to fight it. I’m not saying tons of people and corporations don’t do it, they do, but theoretically it’s non-compliment.

https://en.m.wikipedia.org/wiki/Foreign_Account_Tax_Compliance_Act

On the other hand people and businesses will always find loopholes and certain lawmakers will continue to fight for there to be loopholes but we must remember the difference between the spirit of the law and the letter of the law.

40

[QUOTE=LI_Domer;173514]It’s extremely difficult to actually police policies like this but things like the Foreign Account Tax Compliance Act (FACTA 2010) try to fight it. I’m not saying tons of people and corporations don’t do it, they do, but theoretically it’s non-compliment.

https://en.m.wikipedia.org/wiki/Foreign_Account_Tax_Compliance_Act

On the other hand people and businesses will always find loopholes and certain lawmakers will continue to fight for there to be loopholes but we must remember the difference between the spirit of the law and the letter of the law.[/QUOTE]
When the US IRS goes after Apple, the hedge funds, Golden Sacks and the other masters of the universe for the billions they hide abroad maybe people will take the law seriously. As it is now things are being run by the Golden Rule. Those that have the gold rule.

41

[QUOTE=LI_Domer;173514]It’s extremely difficult to actually police policies like this but things like the Foreign Account Tax Compliance Act (FACTA 2010) try to fight it. I’m not saying tons of people and corporations don’t do it, they do, but theoretically it’s non-compliment.

https://en.m.wikipedia.org/wiki/Foreign_Account_Tax_Compliance_Act

On the other hand people and businesses will always find loopholes and certain lawmakers will continue to fight for there to be loopholes but we must remember the difference between the spirit of the law and the letter of the law.[/QUOTE]

That wikipedia article only mentioned persons. A foreign corporation owned by an American doesn’t appear to be covered.

42

No it is also targets US owned foreign entities.

http://www.lexisnexis.com/legalnewsroom/tax-law/b/fatcacentral/archive/2013/03/25/fatca-s-application-to-foreign-entities-and-foreign-assets.aspx

43

[QUOTE=LI_Domer;173517]No it is also targets US owned foreign entities.

http://www.lexisnexis.com/legalnewsroom/tax-law/b/fatcacentral/archive/2013/03/25/fatca-s-application-to-foreign-entities-and-foreign-assets.aspx[/QUOTE]

Then there is this:

44

Hey I’m with you man, these US Companies should be paying their fair share. Sort of related but it’d also be nice if Disney’s cruise vessels flew US flags since it’s an American company making money mostly off of Americans.

45

[QUOTE=+A465B;173499]Germany taxes global income. Regardless, for most countries, tax treaties ensure no double taxation. I’d rather pay at US rates than German or Norwegian rates, thank you very much, and mariners signed on a ship (by tax treaty) usually pay tax in country of residence …

However, I note my Brit sea going expat colleagues have a very sweet no tax deal.[/quote]

This applies to German residents who earn/gain income abroad:

If your primary place of residence is in Germany, you are fully liable to pay income tax here. This means that all your income, regardless of whether you earned this within Germany and/or abroad, must be taxed in Germany (principle of global income).

It does NOT applies to German Citizens who reside abroad, unless he/she earn anything in Germany. This is the general rule for most countries (Residence not citizenship principle)

Why would you prefer to pay US tax rates? In fact US has among the highest tax rates in the world, both for corporations and for individuals. If you are interested in comparing, here is a list of countries by Tax Rate: List of countries by tax rates - Wikipedia
The max. tax rate for individuals in the much despised high tax countries in Europe is actually less than in the US.

The other thing to consider is what you get back for your tax $ in the form of Health Care, Pension, Child allowance, Unemployment benefits etc.

47

[QUOTE=Capt. Phoenix;173510]But as far as I know there’s nothing illegal about that. Nissan USA is a wholly owned subsidiary of a foreign company but I expect they pay US taxes not Japanese taxes on corporate income since the company is in the US and not in Japan.

Also, I’m assuming he actually incorporated as opposed to forming an LLC, if Singapore even has those, because the unique income structure of an LLC would likely make 100% of the company’s income taxable in the US.[/QUOTE]

What he probably registered would be a Pte. Ltd. company, although LLC company registration does exist. LLC or LLP appears to be popular with Law firms etc.
Here is the basic of how to register a company in Singapore: http://www.mazars.sg/Home/Doing-Business-in-Singapore/Choosing-the-Right-Business-Structure-in-Singapore/Private-Company-LLC-or-Pte-Ltd

A Lawyer would offer his services as “registered office” and “local Director” and/or an Accountant who would also be Company Secretary and arrange an Auditor. Simple, easy and cheap.

If you would rather register your company in HK, BVI, Caymans, Lichtenstein etc. there are plenty of companies in Singapore offering their services to do so at a fee. (Even in Delaware)