[PDLM]

Local company pensions are often worth essentially nothing. You should really understand what exactly the pension and medical benefits are before you sign up...

[indiana jones]

Originally Posted by PDLM

Oh OK - that isn't what I would call a housing allowance - that's a housing quota - it implies that they will take out the lease as well I guess. In that case obviously aim to use up all of the quota if you can't persuade them to move any of it to base salary.

As HK Fella says, regardless of how big your housing allowance is, if you spend it all on housing it will be taxed as if it were an extra 10% of base salary. So in your starting example if you get an apartment at 27K per month and a base salary of 20K then for tax purposes your income would be deemed to be 22K.

Hi all,

is there any way to escape this extra 10% on the base for tax purpose? Legal way of course that is..

Indiana

[paulmears]

declare all the housing allowance as gross salary....you escape the 10% uplift then...

[freeier]

Originally Posted by paulmears

declare all the housing allowance as gross salary....you escape the 10% uplift then...

and of course u get charged for the full sum at prob 16% ...

[paulmears]

wondered if he would pick this up, the 10% uplift is a bargain, saving me a bucket

[freeier]

quite upset that he is flying that Sg flag though. 8-P
fine to ask but i'd personally think that if someone is looking for facts then read more about it elsewhere in the forum before asking the questions.

[HKFella]

Originally Posted by Andi

Yup, I am from India ......
thanks

..guessed from the usage of the 'crib' verb in that unique sense!

Anyway, wish you good luck in negotiations with employer!

[indiana jones]

Originally Posted by freeier

quite upset that he is flying that Sg flag though. 8-P
fine to ask but i'd personally think that if someone is looking for facts then read more about it elsewhere in the forum before asking the questions.

Haha,

dun worry, i wont tarnish your countries reputation. I use the SG flag cause i live there but am a german citizen Happy?

Thanks for the advice..i think i will go for the 10% option

Indiana

[Andi]

Thanks everyone, the replies have been very helpful..dashed a mail to HR to transfer some amount to base....10 or 16% which ever, in the end it is lower than the 33% current tax value being paid...

[Andi]

just an update..managed to move the the extra amount from the HR allowance to base..so will hunt for a house at 20k rental on arrival at quarry bay/taikoo....

cheers