Employing Remote Employees

Question

Dear HR Professionals,

I would like some advice for hiring process of remote employees.

Remote employee will be working in other countries but the salary will be paid out from Singapore.

1) Do we need to apply for Singapore work pass or can we treat this employment like a service contract?

2) Will this be considered under Payroll or service?

3) Do we need to submit tax information to IRAS?

Thank you in advance for your advice.

Reply 1

1. In relation to Singapore's employment laws, the regulations only apply for those who work in Singapore. Hence, the terms and conditions etc such working hours under Singapore's regulations would not apply to the 'remote employees'. In fact, the terms and conditions should be aligned to the countries in which they are working in, ie., adhere to the respective local laws. Therefore, there is no need to apply for work pass since he/she is not working in Singapore in response to your first question. In the same manner, whether employment contract is required or not would depend on the local regulations in the countries that he/she is working in, ie, this answers the second part of your first question.

2. I might not have understood your second question. I guessed your meant 'service of contract' or service for contract'. Go back to the local laws in respective countries.

3. As for IRAS, personal income liabilities come into the picture if the employee works here in Singapore, ie, 'resident status'. Since this employee is not working here, there is no tax liability. This answers your third question See: https://www.iras.gov.sg/irashome/Individuals/Foreigners/Your-Situation/Working-Outside-Singapore/. Of course, whether the said employee's income is taxed or not depends on the tax regulation in the local country. Not forgetting some countries have tax treaty between them in which you would need to check it out in respective local countries.

Henri