Relocation Handbook for HR Practitioners in Singapore

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RELOCATION HANDBOOK

FOR HR PRACTITIONERS IN

SINGAPORE

COPYRIGHT NOTICE

Copyright © The Government of Singapore. All rights reserved. No part of this Report may be reproduced, stored in any retrieval system, or transmitted, in any form or by any means, whether electronic or mechanical including photocopying and recording, without the permission of the Ministry of Manpower.

This publication was published in April 2012. All information contained herein is correct as of date of print.

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TERMS AND CONDITIONS

Proprietary Rights and Intellectual Property

1. The Ministry of Manpower has commissioned PwC International Assignment Services to develop this publication. Any queries related to the technical content of this publication should be directed to the Ministry of Manpower at [email protected].

2. The materials contained in this publication, including but not limited to text, images, designs and photographs (collectively known as “the contents”) will be considered intellectual property of the Government of Singapore and the Ministry of Manpower and shall not be copied, reproduced, disclosed or transmitted in any form, or by any means without prior written permission from MOM.

General Disclaimer and Limitation of Liability

3. This publication is meant for general information only and is by no means to be relied upon as a source of professional advice. The publication may not cover all information available on a particular issue. The reader should not act on the basis of any matter contained in this report without seeking advice specifi c to their own particular circumstances.

4. We will not be liable for any loss or damage that you may incur upon using, reading or relying on any statements, opinion, representation or information in this publication.

Hyperlinks

5. Hyperlinks to websites are provided solely for the convenience of users. We are not responsible for the availability, accuracy or reliability of the contents of other hyperlinked websites and their services or goods. Links to private sector services on websites owned by government agencies are not public services, nor are they endorsed by the Singapore government.

RELOCATION HANDBOOK FOR HR PRACTITIONERS IN SINGAPORE

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1 INTRODUCTION 6

1.1 Providing an Overview of Relocation Market Practice 61.2 Compensation & Benefi ts 71.3 Use of the Relocation Handbook 7

2 RELOCATION ACTIVITIES AND MARKET PRACTICES - SINGAPORE INBOUND TRANSFERS 8

PRE-ARRIVAL ACTIVITIES 2.1 Pre-arrival HR briefi ng 102.2 Pre-assignment familiarisation trips 122.3 School search assistance 142.4 Singapore immigration 16 2.5 Relocation logistics support 182.6 Pension set-up 202.7 Insurance set-up 222.8 Payroll initiation 23

POST-ARRIVAL ACTIVITIES 2.9 Post-arrival HR briefi ng and on-boarding procedures 242.10 Post-arrival tax briefi ng 262.11 Orientation / settling-in programmes 282.12 Home search assistance 302.13 Spousal assistance 32

RELOCATION CHECKLIST 33

Singapore Citizen/Permanent Resident Employees

2.14 Pre-arrival Activities prior to arriving in Singapore – Repatriating Employees 342.15 Pre-arrival Activities prior to arriving in Singapore – New Hires 362.16 Post-arrival Activities in Singapore – New Hires 38

Non-Singapore Citizen Employees

2.17 Pre-arrival Activities prior to arriving in Singapore 392.18 Post-arrival Activities in Singapore 41

COMMON CHALLENGES FACED BY HR PRACTITIONERS 2.19 Immigration compliance 422.20 Tax compliance 422.21 Pension 432.22 Insurance 432.23 Payroll initiation 432.24 Home search assistance 442.25 School search assistance 44

FREQUENTLY ASKED QUESTIONS FROM RELOCATING EMPLOYEES 2.26 Relocation into Singapore 45

CONTENTS

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3 RELOCATION ACTIVITIES AND MARKET PRACTICES - SINGAPORE OUTBOUND TRANSFERS 48

PRE-DEPARTURE ACTIVITIES 3.1 Pre-departure HR briefi ng 503.2 Pre-departure tax briefi ng 523.3 Singapore immigration 543.4 Housing assistance 563.5 Education assistance 583.6 Relocation logistics support 593.7 Pension / Insurance 60

RELOCATION CHECKLIST 62 Singapore Citizen/Permanent Resident Employees

3.8 Pre-departure Activities in Singapore 633.9 Post-arrival Activities in Host Country 66


3.10 Pre-Departure Activities in Singapore 67

COMMON CHALLENGES FACED BY HR PRACTITIONERS 3.11 Immigration compliance 693.12 Tax compliance 693.13 Central Provident Fund (CPF) deregistration 69

FREQUENTLY ASKED QUESTIONS FROM RELOCATING EMPLOYEES

3.14 Relocation out of Singapore 70

4 RELOCATION PROCESS FLOWCHART 74

4.1 Pre-arrival activities before the employee’s acceptance of the assignment to Singapore/new assignment location 744.2 Pre-arrival activities after the employee’s acceptance of the assignment to Singapore/new assignment location 754.3 Post-arrival activities upon the arrival of the employee in Singapore/new assignment location 764.4 Pre-departure activities to be conducted at the current location prior to the employee’s move to Singapore/new assignment location 77

5 UNDERSTANDING RELOCATION COSTS TO THE COMPANY 78

5.1 Further Tax Deduction (FTD) Scheme 805.2 Relocation cost estimates 82

6 USEFUL LINKS 90 7 GLOSSARY OF TERMS 92

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INTRODUCTION

Singaporean companies are expanding their operations regionally and globally and are deploying their employees to various locations to meet their business needs.

Companies in Singapore are increasingly looking to the region and beyond for the talent they need to drive their business agenda.

This handbook has been created to act as a reference guide to companies who may not have a well established relocation framework in place. It is also aimed at assisting HR practitioners who are relatively new or have no extensive exposure to relocation management.

The Relocation Handbook sets out the key areas that Singapore based HR practitioners would have to look into when considering relocating employees* from abroad and when sending their employees to overseas entities.

The main objectives of the handbook include:1. providing a starting point for companies to develop their own relocation/mobility

practices when managing incoming and outgoing global talent*2. equipping HR practitioners involved in global mobility with a relocation checklist3. providing a quick and broad overview of the relocation process by outlining typical

steps involved4. identifying common challenges faced by HR practitioners in providing relocation

support and suggesting ways to address these challenges.

The handbook does not focus on on-assignment considerations such as on-going talent management, succession planning and skills transfer, which are also crucial to successfully managing a global workforce.

PROVIDING AN OVERVIEW OF RELOCATION MARKET PRACTICE

Whilst the key relocation activities outlined in this relocation guide are intended to provide companies with a comprehensive framework for effective relocation management, the eventual relocation policy companies choose to adopt may be refl ective of their general HR policies, cost threshold, profi le of global talent and the types and numbers of cross-border moves into and out of Singapore.

To aid HR practitioners in understanding relocation market practice and to build a relocation policy most suited to the needs of their organisation, we have wherever possible, provided an overview of general market practice highlighting what companies in Singapore are doing in relation to each relocation activity highlighted. This information has been obtained from the 2011 Relocation Practices for Incoming Global Talent to Singapore Survey commissioned by MOM.

In addition, wherever possible, references to global relocation practices have also been included. The basis of this information is PwC’s Global International Assignment Policy Survey, an on-going global survey on Expatriate Tax and Compensation conducted by PwC since 1992. Reference was made to the November 2011 survey results at the point in time when this Relocation Handbook was developed.

* Please refer to the Glossary of Terms for more details 6


COMPENSATION AND BENEFITS

Structuring compensation and benefi ts is one of the key challenges companies face in attracting and retaining global talent. Companies need to ensure that a suitable compensation structure is in place based on the categories of employees being hired. Factors such as the needs and objectives of the company in hiring global talent, the seniority of the employee being relocated and the length of the assignment should be considered.

Depending on the employee category, the remuneration package can be based on one of the following:

• A traditional home based approach* where the relocating employee remains on the home compensation structure and home benefi ts as far as possible, is tax equalised to their home country* and is provided with full relocation and on-going assignment benefi ts.

• A local plus approach* where the relocating employee’s remuneration is based on the host country and they may be provided with limited relocation and on-going assignment benefi ts.

• A local approach* where the relocating employee is provided with a local employment package and relocation support is restricted to covering the basic activities required to bring them into Singapore.

Readers are provided with illustrations of assignment cost projections based on various remuneration packages, family sizes and host locations in Section 5 of this guide.

USE OF THE RELOCATION HANDBOOK

The Relocation Handbook is meant to provide a guide to companies looking at relocating employees into and out of Singapore.

It highlights to companies the importance of having relocation policies and processes in place and provides an overview of how other Singapore based companies manage the deployment of global talent.

Ultimately, companies need to establish policies that will best suit their business needs and cost threshold.

It should be noted that the information contained in this Relocation Handbook is current at the time of publication.



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2. RELOCATION ACTIVITIES AND MARKET PRACTICES – SINGAPORE INBOUND TRANSFERS

PRE-ARRIVAL ACTIVITIES

2.1 PRE-ARRIVAL HR BRIEFING

Objective:

The pre-arrival HR briefi ng* is typically conducted prior to the relocating employee’s arrival in Singapore. The briefi ng is usually aimed at providing an overview of the following:

• Terms and conditions of employment for the Singapore based role• Relocation support provided by the company• Key contacts within the host company in relation to settling into the role • Information on the appointed career coach for the duration of the assignment.

Market Practice:

The majority of companies relocating foreign executives* to Singapore provide employees with an in-house pre-arrival HR briefi ng that typically covers assignment objectives, assignment terms and conditions and the relocation process. Approximately one third of companies outsource some aspects of the briefi ng to external consultants.

Key Considerations:

During the briefi ng, the following may be discussed with the relocating employee:

• Overview of applicable HR policies and compensation and benefi ts specifi c to the role in Singapore

• Types of relocation support provided and relocation vendor contacts• List of pre-relocation activities to be completed, steps to be taken and estimated

timelines involved • Addressing the concerns the relocating employee and his/her accompanying

dependants may have on transitioning and integrating into Singapore as well as questions on career coaching throughout the assignment period.


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The briefi ng can be conducted in whole by the HR practitioner or outsourced in part to external consultants.

The briefi ng conducted in-house by HR practitioners would typically focus on assignment objectives and career-related discussions.

The section that is outsourced to external consultants can be based on a standard programme outline, or customised according to the requirements of the company/facts and circumstances of the relocating employee.

The external consultants will focus on briefi ng the employee on basic assignment entitlements and the relocation process.

Other Sources of Information/References:

• Relocation services companies

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* Please refer to the Glossary of Terms for more details

2.2 PRE-ASSIGNMENT FAMILIARISATION TRIPS

Objective:

Pre-assignment familiarisation trips* are provided to the relocating employee and preferably his/her accompanying spouse/partner to provide an overview of how it would be like to live and work in Singapore.

The HR team or outsourced external consultant will typically arrange for the fl ights and hotel stay in addition to providing the agenda for the trip to the relocating employee.

Market Practice:

Pre-assignment familiarisation trips into Singapore are typically provided to foreign executives on expatriate terms*, and to a lesser extent to foreign executives on non-expatriate terms*.

Where provided, the average length of the trip may range from 4 to 6 days depending on the travel time to Singapore and activities to be covered. All reasonable costs for the trip including airfare, temporary accommodation and food/laundry allowances are paid for by most companies.

Key Considerations:

Providing an overview of Singapore, covering the key topics listed below, should be considered when determining the pre-assignment familiarisation trip itinerary:

Key topics Typical interest areas covered

Socio-economic Factors • Culture and lifestyle • Social and business norms • Personal security and well-being General Facilities • Transportation • Banking services Standard of Living • Housing (overview of various housing types) • Education (school search) • Medical and health services • Cost of living Working in Singapore • Business meetings with Business/HR line managers in Singapore

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Singapore Citizens

Depending on the length of overseas stay, topics that the relocating employee is familiar with and that which have remained largely unchanged while they were away may be excluded from the pre-assignment familiarisation trip.

Non-Singapore Citizens

For relocating employees new to Singapore, all topics listed in the table above should be covered.

The trip can be coordinated in-house by HR practitioners or outsourced to external consultants.

When outsourced, this can be provided based on a standardised programme outline, or customised according to the requirements of the company/facts and — circumstances of the relocating employee.


• Relocation service companies

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2.3 SCHOOL SEARCH ASSISTANCE

Objective:

School search assistance is provided to the relocating employee in order to determine the right school for accompanying children to attend based on the options available in Singapore.

The Singapore education system is comprehensive and caters to the needs of both Singapore citizens and non-Singapore citizens. There are a wide variety of educational institutions available (e.g. local public schools, foreign schools, private schools) and hence, it is critical for the relocating employee to make an informed decision.

The process of assisting with school search may include:

• Obtaining a needs analysis from the relocating employee• Providing the relocating employee with a listing of the types of available educational

institutions in Singapore• Providing the contact details of the Admissions Departments of chosen schools• Arranging for school visits• Assisting with the school registration process (e.g. payment of deposit).

Market Practice:

Both new foreign sourced hires* and intra-company transferees* on local terms receive limited assistance in relation to dependant schooling with only general school information typically being provided to the relocating employee.

However, foreign employees on expatriate terms are typically provided with additional assistance in terms of school registrations, deposit payments and reimbursement of international school fees.

This market practice is consistent for both Singapore based companies as well as companies overseas.

Key Considerations:

Relocating employees who are provided with limited assistance for dependant schooling are usually furnished with general school information on schooling options in Singapore, by the companies.

Comprehensive assistance — in the form of guided school search assistance, access to education counsellors, assistance with school registrations and deposits etc — may be provided by companies to a select group of relocating employees, typically those coming on expatriate terms. Assistance is usually outsourced to external relocation vendors.



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It must be noted that in many cases, employees may only agree to the move to Singapore if their child(ren) can secure a place in the school of their choice. Companies should therefore provide suffi cient focus to this area.


• Information on the education system in Singapore app.singaporeedu.gov.sg

• Information on foreign system schools/international schools in Singapore www.cpe.gov.sg www.contactsingapore.sg

• Information on international / returning Singaporean student admissions to local schools in Singapore

www.moe.gov.sg

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2.4 SINGAPORE IMMIGRATION

Objective:

This section considers the Singapore immigration requirements that need to be complied with and highlights the need for the relevant work pass applications to be initiated and obtained for the relocating employee, and any accompanying dependants, prior to commencement of employment/assignment.

Market Practice:

Employers who hire foreigners without valid work passes can be prosecuted under the Employment of Foreign Manpower Act. Thus it is the employer’s responsibility to ensure that the foreign employee holds a valid pass to work in Singapore. The 2011 Relocation Practices for Incoming Global Talent to Singapore Survey commissioned by MOM indicated that the majority of companies provide immigration support to foreign employees.

Employers usually provide foreign employees who are Employment Pass holders with support during the application, renewal and cancellation processes. Immigration assistance is generally not provided to employees after they obtain their Singapore Permanent Residency (SPR). The Employment Pass will automatically be cancelled once a foreign employee obtains SPR.

Generally, employers do not provide assistance to employees with their SPR or Re-entry Permit renewal applications.

In terms of family members, the extent of immigration support provided by companies is dependent upon the policy under which the employee relocates to work in Singapore. Typically, companies provide immigration support to immediate family members (spouse, children or step-children) of employees who are on long-term assignment and on permanent transfer into Singapore. Employees who are relocating on short term assignments or who are on extended business trips are typically not provided with such support.

Additionally, companies provide little or no support to employees who want to relocate parents, parents-in-law or other extended family members into Singapore.

Key Considerations:

Singapore Citizens

Typically no action is required as Singapore citizens are allowed to travel in and out of the country without any restriction, even for long periods of time.

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Singapore Permanent Residents

Singapore permanent residents can live and work in Singapore without restrictions. However, permanent residents returning to Singapore after being overseas for a period of time should ensure the validity of their re-entry permits. It is essential that Singapore permanent residents hold valid re-entry permits to enable them to re-enter Singapore whilst retaining their Singapore permanent residence status. Non-Singapore Citizens

Employment Pass and related-family passes are required for the relocating employee and accompanying dependants (if applicable) to work and reside in Singapore.

Prior to the relocation of the employee, an in-principle approval for the Employment Pass should be obtained. The following details should be provided to the relocating employee to initiate the pass application process:

• Types of pass or pass(es) that would be required• Documentation requirements (including required translations)• Processes and timelines (including arrangement of medical check-ups/immunisation,

if required).

Spouses and unmarried or legally adopted children (below 21 years old) of eligible Employment Pass holders are also entitled to apply for a Dependant’s Pass in order to reside in Singapore. Certain categories of Employment Pass holders have the option to apply for Long Term Visit Passes for their accompanying extended family members. Common-law spouse, unmarried daughters above 21 years old, handicapped children above 21 years old, step-children below 21 years old, parents and parents-in-law of eligible Employment Pass holders may apply for Long Term Visit Passes. The discussion is typically initiated by the company HR practitioner and implementation may be outsourced to external immigration vendors.

HR practitioners should understand the timeline involved in obtaining the in-principle approval and communicate this to the relocating employee, as well as to the line managers. This is to ensure that the expectations around the commencement date of employment for the relocating employee can be managed appropriately.


• Immigration and Checkpoints Authority (ICA) - (includes information on permanent resident services)

www.ica.gov.sg

• Ministry of Manpower www.mom.gov.sg

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2.5 RELOCATION LOGISTICS SUPPORT

Objective:

Relocation logistics support is essential to ensure that the relocating employee’s physical move into Singapore is effectively managed. The ease of transition will go a long way in providing peace of mind to the relocating employee.

Typical relocation support provided for by companies cover the following areas:

• Departure management* which may include home property management, sale of cars and reimbursement of costs incurred due to early lease breaks, etc.

• Shipment of goods to Singapore and storage of household goods at home (latter is usually for employees relocating to Singapore for a limited period of time)

• Relocation fl ight arrangements• Temporary accommodation needs at both the home location and Singapore• Per diem*/expense reimbursements during the employee’s stay in temporary

accommodation.

Market Practice:

Based on global relocation practices, the majority of companies provide basic relocation support to their foreign hires, which includes:

• Relocation fl ights (one-way fl ight for the employee and his/her family into Singapore) • Temporary accommodation (in serviced apartments for up to 30-days extended stay.

For shorter periods of stay companies may consider hotel accommodation)• Reimbursements for meals and laundry during stay at temporary accommodation.• Shipment and/or air freight of personal belongings.

Findings from the 2011 Relocation Practices for Incoming Global Talent to Singapore Survey commissioned by MOM indicate that relocation support provided to foreign employees transferring to Singapore on expatriate terms are generally more comprehensive than the support provided to transferees or new direct foreign hires on non-expatriate terms.

Singapore-based companies typically provide limited shipping support to relocating employees on non-expatriate terms and full shipping support to employees on expatriate terms. Full support typically includes shipment of personal effects (volumes ranging between 20ft to 40ft container, depending upon family size), and/or air shipment. Based on global relocation practices, most companies do provide shipment support even to new foreign hires.



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Survey fi ndings also show that the extent of relocation support provided to repatriating Singaporeans and new Singaporean hires often varies. Returning Singaporeans* who are repatriating after a company sponsored international assignment are generally provided with full relocation benefi ts, whereas new Singaporean hires may receive limited shipment support.

Key Considerations:

The methods and extent of support provided would be dependent upon the company’s policy. The benefi ts or entitlements would also vary in accordance with the category or seniority of the relocating employee.

Companies may also have the option of providing for a cash allowance to the relocating employee who will then take care of the logistics themselves. Alternatively, companies may engage relocation vendors to coordinate the appropriate logistics support that the relocating employee is entitled to.


• Company’s international assignment policy documents

• Company’s preferred travel agents

• Relocation service companies



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2.6 PENSION SET-UP

Objective:

Pension coverage is an area that HR practitioners may need to place greater focus on as this has increasingly become a key issue for foreign executives looking at staying long term in Singapore. This is especially so for relocating employees originating from Western Europe and North America who are used to having fairly comprehensive pension coverage as a standard part of their retirement benefi ts.

At the start of the assignment in Singapore, HR practitioners need to determine if pension is to be provided as part of the terms and conditions of assignment or employment in Singapore. It is important that the relevant costs and administrative requirements for offering such a benefi t are evaluated.

Market Practice:

Although offering retirement options to relocating employees who are non-Singapore citizens is not mandatory in Singapore, it is a benefi t companies should consider providing as a long-term tool to attract and retain global talent.

The 2011 Relocation Practices for Incoming Global Talent to Singapore Survey commissioned by MOM indicates that about 50% of the larger multinational companies in Singapore provide pension arrangements to their relocating employees.

Key Considerations:

There are various pension options which companies may consider, such as:

• Home country pension plan, where possible

• An international pension plan targeted at globally mobile employees of the company, where available

• Cash-in-lieu of CPF

An option which is simple to administer, is the payment of cash to the relocating employee equivalent to the amount of the employer’s mandatory CPF contribution (or any larger or smaller amount) that would have been otherwise payable, if the relocating employee was statutorily entitled to the same.

• Section 5 fund* (an employee retention incentive approved by the Comptroller of Income Tax)

Companies may set up an approved pension/provident fund as an employee retention incentive. This will require the employer to apply to the Singapore tax authority for the fund to be an approved Section 5 fund. Such companies must provide in the application, details such as, the purpose of setting up the fund, draft trust deed and rules of the proposed fund. Furthermore, companies need to ensure that the terms and conditions of the fund adhere to the rules set out by the IRAS.



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• Supplementary Retirement Scheme (SRS)

The SRS is part of the Singapore government’s strategy to address the fi nancial needs of a greying population by helping Singaporeans to save more for their old age. The scheme is open to foreigners as well as Singaporeans and Singapore Permanent Residents and thus can be considered by companies as a tool to provide for the retirement needs of their foreign employees. Further details can be found at the CPF website listed below.

Singapore Citizens / Permanent Residents

The CPF in Singapore is a compulsory savings plan for all Singapore citizens and permanent residents working in Singapore. Monthly contributions to the CPF are typically administered via e-submission to the CPF Board but there is also an option for payments to be made using the hardcopy Payment Advice.


Non-Singapore citizens relocating into Singapore on local plus or local terms are often hired on Singapore employment terms and conditions. As Employment Pass holders in Singapore, they would not be eligible to join the CPF. If their Singapore-based employers do not provide any comparable pension benefi t, these individuals will have to rely solely on their own savings for their retirement needs.

For non-Singapore citizens, the company may need to consider the following when determining participation in a pension plan:

• Employee’s eligibility to participate in the company’s existing pension plan• Employee’s eligibility to continue participating in their home country’s pension plan• Costs to the company if the employee participates in a new pension plan• Extent of coverage provided between the home country/existing and the new pension

plan• Duration / procedures required for the pension set-up process • The tax implications of participating in such plans from the company’s and the

relocating employee’s perspective.


• Central Provident Fund www.cpf.gov.sg

• Section 5 Fund www.iras.gov.sg

• Supplementary Retirement Scheme app.mof.gov.sg

• Your company’s corporate Reward/Pensions team

• External benefi ts consultants who specialise in pension/benefi ts advisory and administration

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2.7 INSURANCE SET-UP

Objective:

The provision for insurance and medical coverage to employees working in Singapore, with the exception of the workmen’s injury compensation, is not legislated. Although not mandatory, companies should consider providing this to global talent, especially those hired on local terms and conditions.

Companies can consider the various insurance options available and allow for participation in appropriate insurance plans upon the commencement of the relocating employee’s assignment in Singapore.

Market Practice:

Companies in Singapore typically provide locally hired employees with the following:

• Group term life insurance• Group personal accident insurance• Outpatient medical• Group hospitalisation and surgical insurance• Work injury compensation.

The coverage provided may be tiered or structured according to the job requirements and different employee levels with management staff typically provided with the most comprehensive coverage. Some companies may also extend certain forms of insurance coverage to eligible dependants.

Key Considerations:

The insurance plans can be taken up with a local (Singapore) insurance provider or an international one. For international coverage, employees are provided with assistance on a worldwide basis and enjoy the fl exibility of choosing or seeking medical treatment at preferred locations.

The company may need to consider the following when determining the provision of local or international insurance coverage:

• Possibility of extending the relocating employee’s existing insurance coverage to cover Singapore

• Extent of coverage provided between the relocating employee’s existing and new insurance plans

• Length of stay in Singapore and family size• Cost to the company when providing for an international insurance plan.


• Local insurance providers

• International health insurance providers

• Insurance brokers

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2.8 PAYROLL INITIATION

Objective:

To ensure that the relocating employee is paid accurately and on a timely basis, it is important for companies to have clear payroll processes in place so that the relevant payroll teams (at home and host locations) are informed ahead of time of the payment start date, payment amounts and bank account details of the relocating employee.

The company will also need to take steps to ensure that assignment costs are charged to their appropriate business units as agreed, and that an effi cient reporting process is in place to be able to track and capture all assignment related compensation and benefi ts delivered throughout the assignment period, so as to facilitate the company’s tax reporting obligations.

Market Practice:

Employees on Assignment

For relocating employees who are on assignment on expatriate terms, a home-based or split payroll arrangement is typically arranged with host country allowances and benefi ts being delivered in Singapore and a pre-determined percentage of the basic compensation being delivered in the home country.

Employees on Non-Expatriate Terms

For relocating employees transferred to Singapore on local or semi-local employment terms and conditions, a host-based (Singapore) payroll arrangement is typically adopted.

Key Considerations:

The company may need to consider the following when deciding upon a home-based or split payroll arrangement:

• Tax compliance reporting requirements and payment procedures in both the home and host countries, where applicable

• Exchange rate fl uctuations• Assignment compensation and benefi ts to be delivered in home country and the

frequency of review during the assignment period.


• Home or host country in-house payroll team

• Home or host country outsourced payroll vendor

• List of payroll vendors supporting e-submission of Employment Income Application to the Inland Revenue Authority of Singapore (IRAS)

www.iras.gov.sg

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POST-ARRIVAL ACTIVITIES

2.9 POST-ARRIVAL HR BRIEFING AND ON-BOARDING PROCEDURES

Objective:

The above activity should be undertaken by the HR practitioner to welcome the relocating employee to the Singapore offi ce, provide an overview of local internal procedures and protocols, and to follow up with the employee on relocation activities and how they and their families are settling down.

Market Practice:

It is evident from the 2011 Relocation Practices for Incoming Global Talent to Singapore Survey commissioned by MOM that companies place less emphasis on providing post-arrival HR briefi ngs to their foreign executives (53.7%) as compared to pre-arrival HR briefi ngs (80.2%).

On-boarding procedures aimed at providing the relocating employee with the support/information necessary in enabling him/her to settle down in their roles and better understand the local culture and organisational structures should not be underestimated.

Key Considerations:

During the briefi ng, the following may be discussed with the relocating employee:

• HR policies, benefi ts entitlement, relocation support update and offi ce administration (e.g. access card, employee pass, procedures for payroll and benefi ts enrolment, bank account opening etc.)

• On-boarding activities including ‘meet and greet’ sessions with line managers and mentor(s) covering job roles and responsibilities etc.

• New hire orientation sessions covering IT technical support and offi ce facilities tour• ‘Meet and greet’ sessions with fellow employees• Follow up on relocation activities and ascertaining how the employee and his/her

family have settled down in Singapore.

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To ensure a successful on-boarding process, companies should:

• Plan a detailed, well-organised programme that seeks to orientate and smoothly transition the relocating employee into the new work environment and job role

• Appoint fellow employees as ‘buddies’ whom the relocating employee can approach for queries on work, living in Singapore etc. Consider spousal/partner support activities that can be introduced to ease settling down in Singapore

• Periodically following up with the relocating employee during the fi rst year in Singapore to ascertain if additional support is required by the employee/family members.


• Host business unit

• One-stop portal for information about setting up home in Singapore www.home-in-singapore.sg

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2.10 POST-ARRIVAL TAX BRIEFING

Objective:

Post-arrival tax briefi ngs should be considered as a crucial activity for all relocating employees to enable them to understand the Singapore tax system and its fi ling requirements.

Market Practice:

The provision of tax assistance to foreign executives relocating on expatriate terms is common, with over 90% of companies providing them with a post-arrival tax briefi ng. However, less assistance is provided to foreign executives relocating on non-expatriate terms.

Some companies may also extend tax assistance to their employees for relocating to Singapore on a permanent basis, this typically being provided for the fi rst one or two years of their employment in Singapore.

Where provided, post-arrival tax briefi ngs are typically conducted by external tax consultants who are engaged to assist with tax compliance issues in Singapore.

Key Considerations:

During the tax briefi ng, the following may be discussed with the relocating employee:

• Overview of personal income tax regulations in Singapore, including: - basis of taxation - tax residency rules - tax rates - tax fi ling obligations with the Inland Revenue Authority of Singapore

• Tax treatment of the relocating employee’s remuneration package and non-employment income within Singapore- salary, bonus and cash allowances- benefi ts-in-kind- general taxation of gains from stock options and share awards (with special

emphasis on deemed vesting rules)

• Tax incentive schemes available in Singapore - Not Ordinarily Resident (“NOR”) Scheme

• Applicability of company’s Tax Equalisation programme and how it affects the relocating employee.

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• Inland Revenue Authority of Singapore http://www.iras.gov.sg

• In-house tax team

• External tax consultants

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2.11 ORIENTATION / SETTLING-IN PROGRAMMES

Objective:

Orientation and settling-in-programmes* provide the relocating employee and his/her accompanying dependants with useful, practical information about living in Singapore. These programmes are typically aimed at:

• Easing the relocating employee’s, and accompanying dependant(s), settling-in process while also serving to ensure expedited acclimatisation

• Helping accompanying dependants feel comfortable with the new surroundings so that the relocating employee can adapt faster to his/her new role

• Providing an avenue for the relocating employee to address concerns relating to Singapore not anticipated earlier.

Market Practice:

The extent of the orientation and settling-in programmes that are offered to relocating employees typically depends on his/her terms of assignment, with a leaner programme being offered to employees relocating on non-expatriate terms. The level of support provided also depends on individual assignment circumstances, location and family size. Normally a period of 1 to 2 days is allocated for these activities although when external vendors are engaged by companies to handle this activity, the vendors may provide for up to 6 months of support via a hotline to the relocating employee.

Key Considerations:

The topics covered during the orientation/settling-in programmes may include the following:

• Overview of residential location• Medical and health services• Food options • Banking• Transportation• Education for children• Leisure facilities• Child care• Domestic helper• Professional organisations• Utilities• Telecommunications.



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Topics to be covered may be condensed for relocating employees who have had prior experience living in Singapore, irrespective of whether they are Singapore citizens/Permanent Residents or non-Singapore citizens.

These programmes are often conducted by external relocation vendors. The level of assistance provided to relocating employees can vary to a great extent and can be based on:

• A standard programme typically offered by relocation vendors• A customised programme refl ective of the requirements of the company and the

relocating employee, as well as cost threshold of the company for such services.

Companies which do not include this as part of their standard relocation package may consider guiding their relocating employees to readily available materials (e.g. links from the MOM web-site).


• Vendors focusing on cultural training

• Singbound and Homebound Orientation Programmes www.singbound.sg

• Information on Healthcare Services www.moh.gov.sg www.contactsingapore.sg


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2.12 HOME SEARCH ASSISTANCE

Objective:

Home search assistance is provided by companies to relocating employees to enable them to secure suitable long-term housing in Singapore in the shortest time possible. Being new to Singapore, employees fi nd this assistance of great value as it helps them to understand the housing options available (e.g. private apartments, landed property), the possible housing locations in Singapore and their corresponding proximity to amenities, schools and public transportation.

Market Practice:

The housing assistance provided by companies is dependent on the terms or policies which govern the relocation of their employees into Singapore i.e. whether they are on the expatriate, local or local-plus policy of employment.

The level of assistance provided may vary as follows:

• Comprehensive – to include guided home search*, lease negotiations, handover assistance, tenancy agreement review, deposit/rental payments, lease renewal/termination, etc.

• Limited – provision of general housing information and limited guided home search. The company may provide the relocating employee with a listing of preferred housing agents whom they may refer to for assistance. Apart from assisting with the home search, housing agents also help the employee with rent negotiations, lease contracts etc.

Typically, foreign executives on expatriate terms* are provided with more comprehensive assistance, including home search assistance and company-leased housing, while foreign employees on non-expatriate terms* are provided mainly with general housing information and limited home search assistance.

HR practitioners need to consider the level of support that the company is willing to provide to the relocating employee in fi nding suitable accommodation that is both refl ective of his/her lifestyle needs, as well as based upon the applicable housing budget allocated.

Key Considerations:

Home search assistance is typically included as a service provided by destination service providers. In cases where the relocating employee is not entitled to home search assistance, HR practitioners may wish to recommend a list of reputable housing agents to be engaged by the relocating employee in order to ensure that their interests are well protected.



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The typical cost/cash fl ow associated with this benefi t includes:

• Fees to destination service provider for assisting in full scope of home search• Security deposits paid out to the landlord on behalf of the relocating employee

(refundable at the end of the lease)• Monthly lease payments for foreign executives on expatriate terms.

In the case of relocating employees who are on local or local-plus policies, limited housing assistance in the form of home search programmes may be provided.

Additional support that HR practitioners may consider in this area would be:

• Time-off to allow relocating employee to conduct their home search• Providing bridging loans to relocating employees who may need fi nancial assistance

for the initial outlay required e.g. paying for rental deposits or housing agent’s commission

• Interim accommodation support for Returning Singaporeans. As these employees may have been away from Singapore for a long period of time, they may need time to secure permanent housing. Provision of serviced apartment/hotel accommodation for up to a month and/or access to home search assistance can therefore be made available during their home search period.


• Information on housing in Singapore www.contactsingapore.sg

• List of registered estate agents/salespersons www.cea.gov.sg

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2.13 SPOUSAL ASSISTANCE

Objective:

Spousal assistance refers to support provided to the spouse/partner of the relocating employee in terms of exploring career opportunities in Singapore.

Common support provided to the spouse/partner of the relocating employee may include the following:

• Career counselling• CV/Resume advice• Education/Training• Career enhancing activities • Networking opportunities.

Market Practice:

As refl ected from the 2011 Relocation Practices for Incoming Global Talent to Singapore Survey commissioned by MOM, only 40% of companies surveyed provide some form of support in this area. Based on PwC’s Global International Assignment Policy Survey (data extracted in November 2011), more than half of companies surveyed provide work permit assistance to support spouses seeking work opportunities in the host assignment locations. Some companies even provide an allowance to cover expenses in support of spousal career enhancement activities (e.g. training and job search).

Key Considerations:

Spousal assistance that companies provide may take the form of fi nancial assistance (e.g. lump sum payment to relocating employees) or actual support (e.g. access to education and/or career counsellors etc.).

This is an area of support that is often not considered to be critical but should be focused on in order to provide appropriate support to the relocating employee’s accompanying spouse/partner. A happy spouse/partner will often translate to a happy employee.

Support in this area is typically outsourced to external relocation vendors.

Other Sources of Information/References::

• Relocation services companies

• Career counsellors

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RELOCATION CHECKLIST

The relocation checklist is aimed at providing HR Practitioners with a quick reference guide by highlighting the key steps to be taken when relocating their employees.

The checklists have been divided into two main categories as follows:

1. Relocating employees who are Singapore citizens or Singapore Permanent Residents (SPRs) – subdivided into repatriating employees and new hires;

2. Relocating employees who are non-Singapore citizens.

In each of the above categories, the checklists cover the following activities:

• Pre-arrival activities prior to arriving in Singapore;• Post-arrival activities in Singapore.

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SINGAPORE CITIZEN / PERMANENT RESIDENT EMPLOYEES

2.14 Pre-arrival Activities prior to arriving in Singapore – Repatriating Employees

1. Obtain internal assignment approvals, determine date of transfer and roles and responsibilities so as to facilitate the transfer with host/home country HR representative(s).

2. Prepare assignment documents for the relocating employee based on company’s assignment policy or the agreed upon relocation package (where applicable).

3. To facilitate the relocation process, prepare a list of preferred service providers and their contacts, as applicable:

Relocation vendors Travel/hotel agents Immigration vendors Insurance/pension consultants Tax agents Housing agents

4. Housing assistance: Co-ordinate with host HR representative to: - notify relevant housing agents to initiate termination of housing lease and

serve the relevant notice period required - ensure relevant security deposits/refunds are returned (where applicable)

5. Education assistance at the assignment location: For repatriating Singaporeans, co-ordinate with host HR representative to: - confi rm last day of school for the child(ren) - notify respective schools of the departure dates of the child(ren) - ensure relevant school deposits/refunds are returned (where applicable)

6. School search assistance in Singapore: Provide relocating employee with general information on local school enrolment

and the options available. This may include suitable institutions that are compatible with the educational system of the child(ren) in the host location

7. Pre-departure tax briefi ng: Coordinate with host HR representative to: - arrange a pre-departure tax briefi ng - pre-departure tax briefi ngs can be carried out by either an in-house tax

specialist or outsourced to a professional tax agent - provide tax agent/in-house tax specialist with the contact details of the

relocating employee - provide tax agent/in-house tax specialist with the current year’s compensation

details for tax equalisation* settlement (where applicable to employees who are tax equalised during the assignment period) and tax fi ling/clearance purposes

Track and monitor tax implications of LTIPs granted during the assignment period, where applicable



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8. Pension/Insurance: Withdrawal from benefi ts plans in host countries, where applicable for

repatriating Singaporeans Confi rm that a CPF account is in place and obtain CPF account number for

Singapore Permanent Residents, where applicable Prepare documentation required and enrol relocating employee in the company

designated local insurance plan Determine type of coverage for eligible relocating employee (e,g, based on the

extent of overseas travel required)

9. Pre-departure HR briefi ng: Provide assignment-related documents to relocating employee and review

details of assignment policy and entitlements Discuss and clarify roles and responsibilities during the relocation/assignment

period, assignment objectives, compensation and benefi ts and relocation logistics

Provide relocating employee with contact details of service providers and list of documents/information required from the relocating employee to initiate applicable relocation services

Address concerns and answer questions from employee relocating into Singapore

Co-ordinate with host HR representative to: - contact relocating employee and arrange for the briefi ng - communicate claims/reimbursements and how these should be made out to

the relocating employee after his/her move into Singapore - return company assets prior to leaving on/before last day of work in the host

country - transfer of relevant personnel records (e.g. performance feedback forms,

compensation and benefi ts summary, LTIPs etc.)

10. Relocation support: Confi rm departure date of the relocating employee Co-ordinate with host HR representative to arrange - pre-move survey and shipment of personal effects - relocation fl ights to Singapore - temporary accommodation in the host country and Singapore, as applicable Contact company designated home management vendor to initiate required

assistance to terminate housing rental lease in Singapore, if applicable, in the event that an employee has leased the property during the assignment period

Determine per diem/expense reimbursement entitlements and procedures whilst in temporary accommodation and communicate this to relocating employee

11. Immigration assistance: Confi rm validity of re-entry permits (Singapore Permanent Residents only) Arrange for employment/dependant pass cancellation in the host country upon

assignment termination

12. Cessation of assignment package: Inform Singapore and host country payroll teams to cease relevant assignment

payments upon confi rmation of last working day at the host country

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2.15 Pre-arrival Activities prior to arriving in Singapore – New Hires

1. Obtain internal assignment approvals and determine the date of employment and roles and responsibilities in order to facilitate the transfer of the employee.

2. Prepare assignment documents for the relocating employee based on the company’s assignment policy or agreed relocation package (where applicable)



4. School search assistance in Singapore: Provide relocating employee with general information on local school enrolment

and options available. This may include suitable institutions that are compatible with the educational system of the child(ren) at the point of origin

5. Pre-departure tax briefi ng: Coordinate with point of origin HR representative to

- arrange a pre-departure tax briefi ng - pre-departure tax briefi ngs can be carried out by either an in-house tax

specialist or outsourced to a tax agent - provide tax agent/in-house tax specialist with the contact details of the

relocating employee

6. Pension/Insurance: Confi rm that a CPF account is in place and obtain CPF account number for

Singapore Permanent Residents Prepare documentation required and enrol relocating employee in the company

designated local insurance plan Determine type of coverage for eligible relocating employees (e.g. based on the

extent of overseas travel required)

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7. Pre-departure HR briefi ng: Contact relocating employee to arrange for meeting dates/times Provide assignment-related documents to relocating employee and review


period, assignment objectives, compensation and benefi ts and relocation logistics

Provide relocating employee with contact details of service providers and list of documents/information required from the relocating employee in order to initiate applicable relocation services

Address concerns and answer questions from employee relocating into Singapore

8. Relocation support: Confi rm employment start date of the relocating employee in Singapore Coordinate with point of origin HR representative to arrange

- pre-move survey and shipment of personal effects - relocation fl ights to Singapore - temporary accommodation at the point of origin and Singapore, as applicable

Contact company designated home management vendor and initiate required assistance to terminate housing rental lease in Singapore, if applicable, in the event that the employee has leased the property during the period away from Singapore.

Determine per diem/expense reimbursement entitlements and procedures whilst in temporary accommodation and communicate this to relocating employee

9. Immigration services: Confi rm validity of Singapore re-entry permits (Singapore Permanent Residents

only)

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2.16 Post-arrival Activities in Singapore – New Hires

1. Home search assistance: Provide relocating employee with an overview of housing options that meet

their housing budgets and lifestyle needs in Singapore, where required

2. Orientation/settling-in programmes (optional): Contact company designated orientation vendor/personnel to arrange a suitable

programme Provide orientation vendor with the contact details and specifi c requests of the

relocating employee, where applicable

3. Post-arrival HR briefi ng and on-boarding procedures: Contact relocating employee and arrange for the briefi ng Coordinate an introduction plan with respective business unit(s) Facilitate logistics set-up (work-station, computer, employee pass etc.) Assist with spousal settling in issues, where appropriate

4. Spousal assistance (optional): Advise relocating employee on the type of assistance available for the

accompanying spouse/partner, where provided Arrange and enrol accompanying spouse/partner in the relevant spousal support

activities

5. Post-arrival tax briefi ng: Arrange with company designated tax agent/in-house tax specialist for the

briefi ng, where provided Provide tax agent/in-house tax specialist with the contact and assignment (if

applicable) details of the relocating employee Follow up with the tax agent/in-house tax specialist to ensure that the briefi ng

has been conducted Follow up with the relocating employee to ensure that all queries have been

addressed

6. Initiation of employment allowances/benefi ts: Check that Singapore bank details/account of relocating employee is up to date/

set up respectively in order to facilitate salary payments Inform relevant payroll team(s) of payments and bank account details, as

applicable



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NON-SINGAPORE CITIZEN EMPLOYEES

2.17 Pre-arrival Activities prior to arriving in Singapore

1. Obtain internal assignment approvals and determine date of transfer, roles and responsibilities so as to facilitate the transfer with point of origin* 1. HR representative, where applicable

2. Prepare assignment documents for the relocating employee based on company’s assignment policy or agreed relocation package (where applicable)



4. Pre-assignment familiarisation trip: Determine length of trip to Singapore Arrange fl ights, hotel stay and programme outline with the preferred service

providers (i.e. relocation vendors)

5. School search assistance: Provide relocating employee with general information on schooling options

(international schools, local schools) To offer greater support to the relocating employee/family – appoint a company

designated school search vendor and initiate required assistance, providing the school search vendor with the contact details, age of the child(ren) and preferences of the relocating employee, if any (optional)

Assist with school registrations and deposits for relocating employee with such an entitlement

6. Pension set-up: Determine if continued enrolment into existing home/company pension plan is

feasible/applicable (should be determined based on type of assignment package offered to the relocating employee, duration of Singapore assignment)

Explore other pension plan options, if applicable Prepare documentation required and enrol the relocating employee in the

selected pension plan



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7. Insurance set-up: Determine if continued enrolment into existing home insurance plans are

feasible/applicable (should be determined based on type of assignment package offered to the relocating employee and duration of their Singapore assignment)

Determine if enrolment in host insurance plans are a better or more feasible option Determine if international coverage is required based on the extent of travel

required by the relocating employee Prepare documentation required and enrol the relocating employee in the

selected insurance plan

8. Pre-departure HR briefi ng: Provide assignment-related documents to relocating employee and review


period, assignment objectives, compensation and benefi ts and relocation logistics Provide relocating employee with contact details of service providers and list

of documents/information required from the relocating employee in order to initiate applicable relocation services

Address concerns and answer questions from employee relocating to Singapore Coordinate with point of origin HR representative/relocation vendor to

- contact relocating employee and arrange for the briefi ng - communicate claims/reimbursements and how these should be paid to the

relocating employee after moving to Singapore, where applicable - return company assets prior to leaving or on last day of work in the point of

origin, where applicable - transfer relevant personnel records (e.g. performance feedback forms,

compensation and benefi ts summary, LTIPs etc.), where applicable

9. Singapore immigration: Confi rm duration of Singapore assignment Provide a list of documentation required by the authorities to support the

application(s) of the relevant pass(es) Note: if documents required are not in English, translated copies will be required.

Prepare and submit employment/dependant pass applications Arrange for medical check-up and immunisation, if applicable Submit request to issue the approved employment/dependant passes upon the

arrival of the relocating employee in Singapore Arrange for collection of the employment/dependant passes

10. Relocation support: Confi rm employment start date of the relocating employee in Singapore Determine and provide the relevant support in the home country/point of origin

for early lease break, sale of vehicle(s) or home property management, as applicable

Coordinate with point of origin HR representative/relocation vendor to arrange - pre-move survey and shipment of personal effects - relocation fl ights to Singapore - temporary accommodation in the home country/point of origin and Singapore,

as applicable Determine per diem/expense reimbursement entitlements and procedures whilst

in temporary accommodation and communicate this to relocating employee

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2.18 Post-arrival Activities in Singapore

1. Home search assistance: Contact company designated home search vendor and initiate required

assistance Provide home search vendor with the contact details, housing budget and

preferences of the relocating employee, if any Provide relocating employee with an overview of housing options that meet

their housing budgets and lifestyle needs Assist to review and fi nalise tenancy agreement, arrange for payment of security

deposits for relocating employee entitled to company-leased housing

2. Orientation/settling-in programmes (optional): Contact company designated orientation vendor/personnel to arrange a suitable

programme Provide orientation vendor with the contact details and specifi c requests of the

relocating employee, if any

3. Post-arrival HR briefi ng and on-boarding procedures: Contact relocating employee and arrange for the briefi ng Coordinate an introduction plan with respective business unit(s) Facilitate logistics set-up (work-station, computer, employee pass etc.) Assist with spousal settling in issues, where appropriate

4. Spousal assistance (optional): Advise relocating employee on the type of assistance available for the

accompanying spouse/partner, where provided Arrange and enrol accompanying spouse/partner in the relevant spousal support

activities

5. Post-arrival tax briefi ng: Arrange with company designated tax agent/in-house tax specialist for the

briefi ng Provide tax agent/in-house tax specialist with the contact and assignment (if

applicable) details of the relocating employee Follow up with the tax agent/in-house tax specialist to ensure that the briefi ng

has been conducted Follow up with the relocating employee to ensure that all queries have been

addressed

6. Implementation of assignment package: Check that relocating employee has been able to set-up Singapore bank

account(s) to facilitate salary payments Inform relevant payroll teams of payments and bank account details Coordinate with required parties to ensure that assignment costs are charged

in accordance with cost allocation agreement between the home/point of origin and host business entities

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COMMON CHALLENGES FACED BY HR PRACTITIONERS

2.19 Immigration Compliance

One of the most important areas to place focus on before the relocating employee can work in Singapore is compliance with immigration requirements.

HR practitioners often have to manage the expectations of line management in relation to the start date of assignments; they must also be able to advise on immigration requirements, potential obstacles, application processes and expected timelines. Some sources of information HR practitioners could refer to include the MOM web-site and external immigration advisors.

Business trips into Singapore pose another key challenge to HR practitioners.

• The duration of business trips, frequency, nature of activities being performed whilst on a business trip, could trigger a requirement to obtain an appropriate work pass. Tax liabilities (refer to Section 3.2) should also be considered.

• Business trips into Singapore undertaken by foreign employees, where the purpose of stay or nature of activities performed during the stay may fall outside the activities allowed to the employee, could mean requiring an application for the appropriate work pass.

• Business trips which are extended beyond the time frame originally anticipated could also trigger a requirement to obtain an appropriate work pass; it could also involve tax liability issues that may need to be addressed.

2.20 Tax Compliance

Reporting of total compensation and benefi ts

Employees relocating into Singapore may be provided with one-time or recurring allowances/benefi ts in both their home and host locations. Some relocating employees may also have a split payroll arrangement in place.

It is important that total compensation and benefi ts that relates to Singapore employment is declared for tax purposes, including payments made overseas. HR practitioners are typically faced with the challenge of consolidating all related compensation and benefi ts data in order to facilitate accurate and timely tax fi ling.

Processes need to be in place to ensure that information on total employment compensation and benefi ts, from both home and host payrolls/external vendors, and from any other source, is collated accurately.

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It is also important to understand the types of in-kind benefi ts which should be declared for tax purposes. Employer’s contributions to overseas pension plans, long term incentive plans, staff discounts and long service awards, are just some examples of the benefi ts in-kind which should be declared for taxation purposes in Singapore.

It is advisable for companies to consult their tax advisors for advice in relation to tax compliance considerations relating to their global talent.

Tax fi ling requirements in home country

Depending on the nationality/country of origin of the relocating employee, some may be subjected to taxation on their worldwide income* (e.g. US citizens / US Greencard Holders).

HR practitioners should be aware of countries that tax their residents on this basis so as to better understand the concerns relocating employees may have in relation to their tax liabilities. Pre-departure tax briefi ngs and tax briefi ngs upon arrival in Singapore will be able to provide the relocating employee with an overview and understanding of his/her tax fi ling obligations in both countries.

2.21 Pension

It is advisable for HR practitioners to be aware of their relocating employee’s current pension benefi ts, the extent it is possible for them to remain on their home schemes, and, where this is not possible, to be able to explain the options available to them (such as the company or employee funded schemes like the cash-in-lieu of CPF).

2.22 Insurance

It may be diffi cult for companies to fi nd local insurance coverage (medical, hospitalisation and surgical, death and disability) that is comparable to that provided by the relocating employee’s home country/point of origin. Relocating employees may not be familiar with local insurance coverage and HR practitioners should be well advised to explain what is covered and provide them with options available (company or employee funded) which they may wish to consider should additional coverage be required.

2.23 Payroll Initiation

It is important to provide the relocating employee’s remuneration details, start date and other pertinent information to host and home payroll teams or payroll vendors (where applicable) on a timely basis. This is especially critical at the start of employment in Singapore as the relocating employee will need to open a local bank account and then be enrolled into the host company’s payroll system in order to ensure timely payment of the fi rst month’s salary.

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HR practitioners may be approached by relocating employees (who continue to maintain connections with their home countries), on the possibility of disbursing a portion of their remuneration in different currencies (home and host) or into the home and host bank accounts. Having a policy or guidelines with regards to currency selection and the handling of exchange rate differences may be of help in such situations.

2.24 Home Search Assistance

Relocating employees new to Singapore may not fully appreciate the housing options available which could be very different from what they are used to at their home location. Managing the relocating employee’s expectations upfront and providing them with general information on the housing market in Singapore is highly recommended. Engaging the services of housing agents will provide for professional support.

When engaging the services of housing vendors, it is highly recommended that there is a Service Level Agreement in place between the company and the vendor to ensure that the needs of both the company and the relocating employee are met. The services of the vendors must be evaluated by the relocating employee and the company periodically to ensure that the service and commitment levels of these providers are maintained.

2.25 School Search Assistance

In cases where the school curricula offered in Singapore differ from that of the relocating employee’s home country, their child(ren) may need to attend alternative educational institutions. As such, HR practitioners may need to consider engaging the services of external vendors to assist with school searches or to provide the necessary information that can assist the relocating employee in making the appropriate choice.

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This FAQ section serves to highlight to HR practitioners some typical questions and concerns relocating employees coming into Singapore may have.

The answers to many of these questions are often dependent on the policies and practices of individual companies, their business needs, and the specifi c circumstances of the relocating employee concerned.

Where possible, generic answers have been included for reference purposes.

2.26 Relocation Into Singapore

The questions listed below serve to help HR practitioners anticipate common concerns among relocating employees during the pre-arrival and post-arrival stages of their relocation.

Job and career prospects

Q: How will opportunities relating to my career progression improve with the relocation to Singapore?

Q: To what extent could my assignment in Singapore be extended and for how long? Q: Will a position be available at home upon my return?

Pre-assignment familiarisation trips

Q: What are the main objectives and itinerary of the trip? A: Please refer to section 2.2 of the handbook for further details.

Q: Can my accompanying dependants (spouse and children) be included in the trip? Q: Will I be able to confi rm my permanent housing and school for my child(ren) during

the trip? Q: Are there any signifi cant differences in HR policies between the home country/point

of origin and Singapore and how will these affect me?

Singapore immigration

Q: How long is the processing time for an Employment Pass application?

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Relocation logistics concerns

Q: Is it possible to stopover at Country A instead of fl ying directly from the home country/point of origin to Singapore?

Q: Are the costs of relocating my pet included in my relocation entitlement?Q: Will the company support an extension of my stay at the hotel/serviced apartment if

I am unable to fi nd permanent housing within the number of days provided under the policy?

Q: What is included with the temporary accommodation?Q: Can I claim for excess baggage when I relocate to Singapore?

Pension

Q: Can I be retained in my home country pension plan while in Singapore?Q: As I am not eligible to participate in the local pension plan, what options are available

to me and to what extent will the company be participating?

Insurance

Q: Will my accompanying dependants and I be covered under an international insurance plan while in Singapore?

Q: How does the local medical insurance coverage compare to my home plan.Q: Will I be supported for the difference in monetary terms?Q: Will I be covered for dental?Q: Am I covered by the scheme while I am travelling on business overseas?

Payroll

Q: Is there any payroll/income tax withholding in Singapore?A: There is no payroll/income tax withholding in Singapore.

Q: Can my salary/assignment allowances be paid in another currency (e.g. USD)?Q: Can my salary/assignment allowances be paid in both home country/and Singapore

based on a pre-agreed percentage?Q: My accompanying dependants will be relocating to Singapore at a later stage; how

would this affect the calculation of my assignment allowances/benefi ts entitlement?Q: Can I get an advance on my salary?Q: How do I receive my salary if I do not yet have a Singapore bank account?Q: When do I receive my fi rst pay?

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Post-arrival tax briefi ng

Q: What will be covered during the tax briefi ng?A: Please refer to section 2.10 of the handbook for more details.

Q: What are my tax obligations in Singapore?Q: Will I have any assistance in fi ling my annual tax return?

Orientation/settling-in programmes

Q: What are the types of clubs/associations that I can join in Singapore? Q: As a Returning Singaporean who has been out of the country for a few years, are

there any suitable orientation/familiarisation programmes my family and I could enrol in?

Home search assistance

Q: Will the company assist to pay the security deposit and agent fees upon securing permanent housing?

Q: Will the company assist to review the tenancy agreement with the landlord?Q: Will I be provided with time-off to search for my permanent housing and eventually

move into my new home?

School search assistance

Q: Where can I get information on the schooling system in Singapore?Q: Will the company assist to pay the administration deposit upon securing a place for

my child(ren)?A: Please refer to the links provided under section 2.3 of the handbook for more

information.

Spousal assistance

Q: What type of assistance is provided for my accompanying spouse/partner?

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3. RELOCATION ACTIVITIES AND MARKET PRACTICES – SINGAPORE OUTBOUND TRANSFERS

PRE-DEPARTURE ACTIVITIES

3.1 PRE-DEPARTURE HR BRIEFING

Objective:

Pre-departure HR briefi ngs would cover both employees who are departing for their home locations after a period of assignment in Singapore as well as those who are being sent out on assignments to other host locations from Singapore.

Market Practice:

Many Singapore companies provide such pre-departure HR briefi ngs themselves i.e. they are conducted by their own HR personnel in-house. Many global companies have outsourced certain relocation functions and engaged the services of external relocation vendors to conduct some aspects of these briefi ngs. The briefi ngs conducted in-house by HR practitioners would typically focus on assignment objectives and career related discussions.

The section that is outsourced to external consultants can be based on a standard programme outline, or customised according to the requirements of the company/facts and circumstances of the relocating employee.

Regardless of who conducts them, these briefi ngs are critical for ensuring the smooth relocation of the employee(s) and to ensure that compliance requirements have been taken care of where necessary.

Key Considerations:

Pre-departure HR briefi ngs are conducted to inform the relocating employee of his/her end-of-assignment activities and of the steps to be taken by both the relocating employee and the company prior to the employee’s departure from Singapore.

It is essential that HR practitioners ensure that the relocating employee is fully aware of his/her obligations, the various activities involved in the move and estimated timelines so that so that they will have a holistic understanding of the processes. This will also ensure that the relocating employee’s expectations are properly met and that they are well prepared to handle the move.

Discussion points which should be covered are given below; the fi rst list is a general one for all relocating employees (covering both employees who are returning to their home locations after completing their assignments in Singapore, as well as for those being sent by Singapore employers to a foreign host country on assignment). The second list covers topics which are specifi c to the second category above.

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Common topics which may be discussed with all relocating employees include:

• Types of relocation support provided and vendor contacts• List of pre-relocation activities to be completed, steps to be taken and estimated

timelines involved• Return of company assets which are with the relocating employee e.g. laptop and

other computer peripherals, mobile phones, keys to cabinets/drawers, manuals, employee passes etc.

• Deregistration from certain benefi t plans (e.g. pension, medical, insurance) where applicable

• Tax clearance requirements for non-Singapore citizens• Claims, reimbursements and payment procedures• Details of payroll transfer dates and transfer of relevant personnel records to the

new location.

Topics specifi c to Singapore employees relocating to a foreign host location include:

• Review of assignment letter including compensation and benefi t elements• Contributions to the Central Provident Fund Board; whether these will continue

under the assignment terms and the implications if the contributions cease (for e.g. this will be signifi cant to employees who have housing loans in Singapore and are using the CPF funds to service the loan)

• Tracking and monitoring of the tax implications of LTIPs after relocating out of Singapore

• The expectations of the company in terms of the performance levels to be met and end results/objectives of the assignment

• How the employee will be integrated back into the Singapore company at the end of his/her assignment

• The HR contact at the new host location and a brief overview of information and guidance that the host HR practitioner will be able to provide.


• Overseas Singaporean Portal for Singaporeans posted overseas www.overseassingaporean.sg

• Information on returning to Singapore for Singaporeans repatriating back to Singapore

www.contactsingapore.sg

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3.2 PRE-DEPARTURE TAX BRIEFING

Objective:

Pre-departure tax briefi ngs are conducted to provide the relocating employee with an understanding of their Singapore tax obligations before repatriation* (in the case of non-Singapore citizens) and of such obligations while on assignment (in the case of employees being sent to overseas host locations).

Market Practice:

It has been found that companies generally provide pre-departure tax briefi ngs (either internally or through their tax agents) in the case of employees returning to their home countries after completing their assignments as this involves statutory fi ling requirements to be complied with in Singapore.

When sending employees on overseas assignments, companies tend to focus on the tax compliance requirements at the host locations (arranging for tax agents to assist with the host country’s tax fi ling needs) but not many companies arrange for assistance or advice to be rendered to the departing employee in respect of their Singapore tax obligations, where applicable, during their overseas assignments.

Key Considerations:

Employees on Assignment Overseas

Providing tax briefi ngs to the relocating employee who is being sent on assignment overseas will provide them with an understanding of the tax treatment of overseas sourced income in Singapore, and of their tax fi ling obligations (in Singapore) while living overseas.

Repatriating Employees

For the above group, the tax briefi ng provides the relocating employee with an overview of key documents to be submitted to the Inland Revenue Authority of Singapore (IRAS), tax fi ling deadlines and income withholding obligations of their employer during the tax clearance process.


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During the tax briefi ngs for both the above groups, the following areas may be discussed with the relocating employee:

• Tax residency status • Tax rates• Tax treatment of the relocating employee’s remuneration package and non-

employment income in Singapore, where applicable• Review of tax implications of LTIPs after relocating from Singapore• Tax clearance procedures when leaving Singapore (for non-Singapore citizens).

These briefi ngs can be conducted in-house by HR practitioners, or outsourced to external tax agents.


• Inland Revenue Authority of Singapore www.iras.gov.sg

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3.3 SINGAPORE IMMIGRATION

Objective:

This section considers the Singapore immigration requirements that have to be complied with by the company and the relocating employee before his/her departure from Singapore. It should be noted that these are regulatory requirements and that non-compliance may affect a non-Singapore citizen employee’s future re-entry into Singapore.

Market Practice:

Generally all companies provide immigration support to their employees (non-Singapore citizens) who are repatriating back to their home countries after completion of their assignment in Singapore.

There is no immigration requirement to be complied with in Singapore in the case of employees who are Singaporeans or Singapore Permanent Residents being posted to foreign host locations. Hence such support is not required.

Key Considerations:

Singapore Citizens

Typically no action is required here as Singapore citizens are allowed to travel in-and-out of the country without any restrictions, even for long periods of time.

Singapore Permanent Residents

Singapore permanent residents can maintain their permanent residence (PR) status during their overseas assignments. However, permanent residents overseas must ensure the validity of their re-entry permits. It is essential that Singapore permanent residents hold a valid re-entry permit to allow them to re-enter Singapore whilst retaining their Singapore permanent residency status.


The relocating employee and their accompanying dependants will have their passes cancelled prior to their departure from Singapore.

The following should be addressed to initiate the pass cancellation process:

• Documentation requirements • Processes and timelines.

This is to provide the relocating employee with details of the required steps to be taken prior to his/her departure (and family’s departure, where applicable), including documents that need to be submitted to the immigration department and the timeline involved.

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The detailed process on cancellation of passes, documents required for submission and the timelines involved can be found at the Ministry of Manpower’s website.

The discussion is typically initiated by the company’s HR practitioner while implementation may be outsourced to external immigration vendors.


• Immigration and Checkpoints Authority www.ica.gov.sg


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3.4 HOUSING ASSISTANCE

Objective:

This section provides the types of housing assistance that companies can look to provide to their relocating employees.

The type of support will vary according to whether it is being provided to employees who are relocating back to their home locations after their assignment in Singapore or if it is being provided to the company’s local employees who are being sent on overseas assignment.

Market Practice:

The 2011 Relocation Practices for Incoming Global Talent to Singapore Survey commissioned by MOM shows that more than 80% of foreign employees who are working in Singapore on expatriate terms are provided with housing support by their employers. This support would include housing lease closure when the employee returns home after concluding their assignment.

Foreign employees who are on non-expatriate terms, however, are typically provided with limited housing support, which may include recommending housing agents when the employee arrives in Singapore. In such cases, companies will leave the termination of the lease to the employee to handle (mainly with assistance from the housing agent before they leave Singapore.

The third group to be considered would be local employees (typically Singaporeans or Singapore permanent residents) who are being sent on overseas assignment. It is likely that limited support is also provided to this group of relocating employees who have the option of leasing or selling the properties they are holding in Singapore.

It should be noted that some global companies do have policies which support home sale or home lease programmes (e.g. providing reimbursement for agent fees related to home sale costs) or home maintenance support costs (e.g. keeping the home in good condition) during the period of the employee’s overseas assignment. However this is not widely provided for in Singapore.

Key Considerations:

In the case of expatriate employees who are provided with corporate housing, the company’s housing agent or destination service provider should also assist with lease termination, including the retrieval of the deposit paid.

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In the case of foreign employees who are not on expatriate packages and are leaving Singapore and local employees being sent on overseas assignments, companies would need to consider the extent of support they would like to provide.

Depending on existing housing arrangements (owned or rented property), the relocating employee should be provided with an overview of key areas/steps to be considered in relation to the considerations below, prior to their relocation:

• Leaving the property vacant• Renting the property• Selling the property• Terminating the lease agreement.

Where employees need to relocate due to business needs of the company, and as a result need to break housing leases, companies may consider if any fi nancial assistance/support is to be provided to cover the lease break fees as a result of the move.

The costs associated with this benefi t will involve the following:

• Payment to housing agent or destination service provider for assisting with the lease termination, in the case of expatriate employees

• If a lease break is required due to the employee being relocated before the end of his/her lease term, the company may need to settle the lease break costs based on the terms of the tenancy agreement.

The type of housing assistance provided to relocating employees can be reviewed by the HR practitioner or outsourced to a housing agent who has good knowledge of the processes relating to the sale/rental of property and of the challenges relating to early lease termination/sale of property.


• Housing Development Board www.hdb.gov.sg

• List of registered estate agents/salespersons www.cea.gov.sg

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3.5 EDUCATION ASSISTANCE

Objective:

The above activity is to provide the relocating employee with information relating to withdrawing his/her child(ren) from school(s) in Singapore upon repatriating or relocating out of Singapore.

Market Practice:

An employee relocating out of Singapore is typically not provided with any education assistance as schools normally only require that the student’s parents inform them of the need to withdraw his/her child(ren) from the school.

Unlike getting a place in school which may be a complicated process, withdrawal is typically a straight forward one.

Key Considerations:

The following should however be highlighted to the relocating employee:

• The need to notify the school of withdrawal in a timely manner• Request for school leaving certifi cates, testimonials and the child’s school records

since these documents will be required when applying for school admission in the new assignment or home location

• Request for refund of deposit paid upon enrolment, where applicable, especially for non-local schools

• Explore possibility of reserving a place at the current school if there is the possibility or intention of returning to Singapore in the near future.

Where the deposit paid is refunded directly to the relocating employee, a process should be in place for the company to retrieve this from the relocating employee, if schooling has been a benefi t provided for by the company.


• Information on school admissions for Returning Singaporeans www.moe.gov.sg/education/admissions/returning-singaporeans/

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3.6 RELOCATION LOGISTICS SUPPORT

Objective:

The above relates to the logistical support the company provides to the relocating employee and his/her family (if applicable) upon repatriation to their home locations or moving to a new host country.

Market Practice:

Regardless of assignment terms while in Singapore, relocation support is usually provided to all employees relocating out of Singapore. Employees who are leaving Singapore for an overseas assignment may receive greater relocation support than repatriating employees (e.g. pre-assignment trips) but this will depend on the company’s policy.

Key Considerations:

The mode and extent of support provided would depend on the company policy. The benefi t entitlement would generally also vary according to the category or seniority of the relocating employee.

Companies also have the option of providing a cash allowance to the relocating employee who then takes care of logistics himself/herself. Alternatively, companies may engage relocation vendors to provide the appropriate support.

Singapore and Non-Singapore Citizens

Regardless of whether the relocating employee is a Singaporean or non-Singaporean citizen, the basic assistance that should be provided should cover the following areas:

• Flight to the new location for the relocating employee and accompanying dependants.• Temporary accommodation at the new location for a minimum period while the

relocating employee sources for permanent accommodation• Shipment of personal effects to the new location.

Companies need to evaluate the pros and cons of a lump sum payment to cover logistics arrangements as opposed to vendor engagements. The former method may be easier and simpler to manage by the company but may result in the relocating employee needing to spend more time assessing different vendors and managing them. This in turn is likely to have an impact on their ease of integration into the new location while they deal with the logistics of the move. Tax implications of providing for a lump sum payment and the key issues to be aware of in order to be able to claim this as a non-taxable allowance, should also be considered.

Where companies frequently send their employees abroad, it may be more cost effective to consider engaging an external vendor to manage these moves.

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3.7 PENSION / INSURANCE

Objective:

The coverage accorded by pension and insurance plans is critical to the relocating employee. The HR practitioner or the external benefi ts consultant should thus:

• Provide relocating employees with an overview of the potential impact the relocation may have on their existing pension and insurance benefi ts

• Address the steps required to minimise any adverse impact on the benefi ts derived from these plans resulting from the relocation.

Market Practice:

The pension needs of Singapore citizens/permanent residents are provided for by their accounts maintained with the Central Provident Fund (CPF) Board. Companies typically continue to make voluntary CPF contributions during the overseas assignments of their relocating employees.

For non-Singapore citizens, companies will typically assess the portability of the relocating employee’s existing pension plans and maintain similar provisions in the new assignment location where possible.

In terms of insurance, companies can enrol their relocating employee in the local plans of their new assignment location or with an international plan such as Aetna or Cigna. Companies typically enrol employees who are on assignment in the international plan while their locally hired employees are enrolled on the local insurance plan.

Key Considerations:

Relocating employees should be informed of the ‘portability’ of their existing pension and insurance plans to their new assignment location and of any adverse impacts on these plans. For relocating employees covered under an international insurance plan, this should in principle be able to ‘move’ with the relocating employee.

Relocating employees who are Singapore citizens or permanent residents should be informed of how the company will be handling the voluntary contributions to be made to the CPF during their overseas assignment e.g. if company contributions are made to the CPF Board or paid in cash to the relocating employee.

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For portable pension and insurance plans, HR practitioners should inform the relevant benefi ts specialists on the change in employment location as well as the effective date of change.

Where existing insurance plans are not portable, steps should be taken to inform and deregister the relocating employee from the existing plans in Singapore. Alternative options at the new location should be evaluated and considered based on the coverage provided by the existing plans and any additional coverage required at the new location (e.g. coverage due to being at a hardship location). In such cases, the related cost of such plans to the company is to be evaluated.


• Your company’s corporate Reward/Pensions team

• External benefi ts consultants who specialise in pension/benefi ts advisory and administration


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RELOCATION CHECKLIST

The relocation checklist is aimed at providing HR Practitioners with a quick reference guide by highlighting the key steps to be taken when relocating their employees.

The checklists have been divided into 2 main categories as follows:

1. Relocating employees who are Singapore citizens or Singapore Permanent Residents (SPRs) who are being sent out of Singapore on assignment;

2. Relocating employees who are non-Singapore citizens repatriating from Singapore. In each of the above categories, the checklists cover the following activities:

• Pre-departure activities in Singapore;• Post-arrival activities in the host country (for relocating Singapore citizens and

SPRs being sent on overseas assignment).

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SINGAPORE CITIZEN/PERMANENT RESIDENT EMPLOYEES

3.8 Pre-departure Activities in Singapore

1. Identify relocation entitlements of the relocating employee based on the company’s assignment policy or agreed relocation package and determine the date of transfer

2. Inform host HR representative of the relocation and provide details as below, as applicable:

Details of the relocating employee Confi rmed/estimated employment starting date Type of relocation assistance entitled to Allowances/benefi ts provided



4. Immigration services: Confi rm duration of overseas assignment. Determine if a visa is required for entry into the host country Arrange medical check-ups and immunisations, if necessary Co-ordinate with host HR representative to: - Determine the appropriate type of visa/pass(es) to be obtained- identify list of documents required by the authorities to support the application

of the relevant work pass(es)- submit appropriate documentation for work pass application- arrange for collection of the work pass(es)

5. Pre-assignment familiarisation trip: Determine length of trip to the host country Co-ordinate with host HR representative to arrange fl ights, hotel stay and programme outline with the preferred service providers

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6. School search assistance: Co-ordinate with host HR representative to- contact company designated school search vendor to initiate required assistance- provide school search vendor with the contact details, age of the child(ren) and

preferences of the relocating employee, if any

7. Pension set-up: Determine if enrolment in the host country’s national pension plan or company’s existing pension plan is feasible/applicable (should be determined by/refl ective of the type of assignment package offered to the relocating employee and duration of his/her overseas assignment)

Explore other pension plan options, if applicable Prepare documentation required and enrol the relocating employee in the selected pension plan

8. Insurance set-up: Determine if continued enrolment into existing home insurance plans is feasible/applicable (should be determined by/refl ective of the type of assignment package offered to the relocating employee and duration of his/her overseas assignment)

Determine if enrolment in host country’s insurance plans is a better or more feasible option

Determine if international coverage is required based on the extent of travel required by the relocating employee

Prepare documentation required and enrol the relocating employee in the selected insurance plan(s)

9. Pre-departure HR briefi ng: Contact relocating employee to arrange for meeting dates/times Perform salary withholding procedures to ensure compliance with tax clearance requirements for Singapore permanent resident employees, if applicable

Provide assignment-related documents to relocating employee and review details of assignment policy and entitlements

Provide relocating employee with contact details of service providers and list of documents/information required from the relocating employee to initiate applicable relocation services

Address concerns and answer questions from relocating employees moving out of Singapore

Communicate claims/reimbursements and how these should be paid to the relocating employee after moving out of Singapore

Return of company assets prior to leaving on the last day of work in Singapore Transfer relevant personnel records (e.g. performance feedback forms, compensation and benefi ts summary, LTIPs etc.)

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10. Relocation support: Confi rm employment start date of the relocating employee in the host country Determine and provide the relevant support in Singapore for early lease break, sale of vehicle(s) or home property management, if applicable

Arrange for pre-move survey and shipment of personal effects Arrange relocation fl ight/s to the host country Arrange for temporary accommodation in Singapore, if applicable Co-ordinate with host HR representative to arrange temporary accommodation in the host country

Determine per diem/expense reimbursement entitlements and procedures whilst in temporary accommodation and communicate entitlements to relocating employee

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3.9 Post-arrival Activities in Host Country

1. Home search assistance: Co-ordinate with host HR representative to - contact company designated home search vendor and initiate required

assistance- provide home search vendor with the contact details, housing budget and

preferences of the relocating employee, if any

2. Orientation/settling-in programmes (optional): Co-ordinate with host HR representative to- contact company designated orientation vendor/personnel to arrange a suitable

programme - provide orientation vendor with the contact details and specifi c requests of the

relocating employee, if any

3. Post-arrival HR briefi ng and on-boarding procedures: Co-ordinate with host HR representative to - contact relocating employee and arrange for the briefi ngs- prepare an introduction plan with respective business unit(s)- initiate logistics set-up (work-station, computer, employee pass etc.)- assist with spousal settling in issues, where appropriate

4. Spousal assistance (optional): Advise relocating employee on the types of assistance available for the accompanying spouse/partner, where provided

Co-ordinate with host HR representative to arrange and enrol accompanying spouse/partner in the relevant spousal support programmes

5. Post-arrival tax briefi ng: Co-ordinate with host HR representative to- arrange for the briefi ng with the company designated tax agent/in-house tax

specialist- provide tax agent/in-house tax specialist with the contact details of the relocating

employee- follow up with the tax agent/in-house tax specialist to ensure that the briefi ng

has been conducted Follow up with the relocating employee to ensure that all queries are addressed

6. Implementation of assignment package: Check that relocating employee has been able to set-up bank accounts in the host country so as to facilitate salary payments

Inform Singapore and host country payroll teams of relevant assignment payments and bank account details

Co-ordinate with relevant departments to ensure that assignment costs are charged in accordance with cost allocations agreed between Singapore and host business entity

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NON-SINGAPORE CITIZEN EMPLOYEES

3.10 Pre-departure Activities in Singapore

1. Identify repatriation entitlements of the relocating employee based on the company’s assignment policy or agreed relocation package and determine the last day of work in Singapore

2. Housing assistance: Notify relevant housing agents to initiate termination of housing lease and serve the required notice period

Ensure security deposits/refunds are returned, where applicable

3. Education assistance: Confi rm last day of school for the child(ren) Notify relevant schools of the departure of the child(ren) Ensure school deposits/refunds are returned, where applicable

4. Pre-departure tax briefi ng: Arrange with company designated tax agent/in-house tax specialist for the briefi ng Provide tax agent/in-house tax specialist with the contact details of the relocating employee

Provide tax agent/in-house tax specialist with the current year’s compensation details for tax equalisation settlement (where applicable to employees who are tax equalised during the assignment period) and tax clearance purposes

5. Pension/Insurance: Withdrawal from benefi ts plans in Singapore, where applicable Where eligible, prepare documents required for enrolment in the home country/new location national pension/insurance plans, as required

Where this is not possible, consider options available and assess the ease of portability of existing plans for continued coverage in the home country/new location

6. Pre-departure HR briefi ng: Contact relocating employee and arrange for the briefi ng Perform salary withholding procedures to ensure compliance with tax clearance requirements

Communicate claims/reimbursements and how these should be paid to the relocating employee after moving out of Singapore

Return of company assets prior to leaving on last day of work in Singapore Transfer of relevant personnel records (e.g. performance feedback forms, compensation and benefi ts summary, LTIPs etc)

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7. Relocation support: Confi rm departure date of the relocating employee Arrange for pre-move survey and shipment of personal effects Arrange relocation fl ights to the home country/new location Arrange temporary accommodation in the home country/new location and Singapore, as applicable

Contact company designated home management vendor and initiate required assistance to terminate housing lease in the home country/point of origin etc., as applicable

8. Singapore immigration: Arrange for employment/dependant pass cancellation within 7 days upon assignment termination

Return the employment/dependant passes within 7 days from the date of cancellation

9. Cessation of assignment package: Inform Singapore and home country payroll teams to cease relevant assignment payments upon confi rmation of last working day in Singapore

Withhold all monies due to the relocating employee for tax clearance purposes, where applicable

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COMMON CHALLENGES FACED BY HR PRACTITIONERS

3.11 Immigration Compliance

This includes being provided with suffi cient lead time to initiate and complete all end of assignment immigration related activities. For non-Singaporeans being sent overseas, HR practitioners must ensure that the Singapore employment pass is cancelled at the appropriate time to ensure that the relocating employee and accompanying family hold valid immigration passes to remain in Singapore before moving to the new location. It is for example important for HR to understand if the accompanying family will leave earlier, at the same time, or later due to schooling considerations, spouse/partner job opportunities etc.

3.12 Tax Compliance

HR practitioners need to ensure that in the case of non-Singaporean employees who are relocating overseas, the company must comply with the Income Tax regulations.

They must ensure that tax clearance returns are initiated and any tax payable by the relocating employee is settled prior to their departure from Singapore, otherwise the company may be obligated to clear any outstanding balances. It is important for HR to explain this process ahead of time to the relocating employee so they can plan their cash fl ow.

It is also important that processes are in place to ensure that allowances/bonus amounts paid out after the cessation of the Singapore assignment, but related to Singapore employment, are reported for Singapore taxation purposes.

3.13 Central Provident Fund (CPF) Deregistration

HR practitioners need to be conversant of the CPF regulations as applicable to Singaporeans who are relocating to work overseas. They can then be in a position to explain the requirements to the relocating employees concerned.

In the case of relocating employees who are Singapore Permanent Residents (SPR) and are relocating/repatriating to a third location or their point of origin, HR practitioners must be able to advise on the circumstances under which the funds can be withdrawn.

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This section serves to highlight to HR practitioners some typical questions and concerns relocating employees moving out of Singapore may have.

The answers to many of these questions are often dependent on the policies and practices of individual companies, their business needs, and the specifi c circumstances of their relocating employee(s) concerned.

Where possible, generic answers have been included for reference purposes.

3.14 Relocation Out of Singapore

The questions listed below serve to help HR practitioners anticipate common concerns employees relocating out of Singapore may have.

Pre-departure HR briefi ngQ: How and when will I get my last Singapore pay cheque?Q: Why does my fi nal month’s salary need to be withheld even if I am tax equalised?Q: How and when will I get the reimbursements paid for my submitted claims?Q: Can I close my bank account(s) (and any other links to Singapore specifi c services)

in Singapore?Q: Will I be taxed on the Long Term Incentive Plans? If yes, who is responsible for the

tax liability?

Pre-departure tax briefi ngQ: What are my tax obligations before and after leaving Singapore?A: Please refer to section 3.2 of the handbook for more details

Singapore immigrationQ: How many days can I/my dependants remain in Singapore after cancelling the

Employment / Dependant Passes?A: Generally, all Employment and Dependant Pass holders are allowed to remain in

Singapore 30 days after the passes have been cancelled, unless separate extension has been requested with the MOM/ICA.

Q: Should my Singapore Permanent Resident status expire during the overseas assignment / after I leave Singapore, will the company assist in getting it renewed?

Housing AssistanceQ: Will the company provide any fi nancial support should there be lease break fees

incurred?Q: Will home property management services be provided if I am unable to sell/rent my

property before departing from Singapore?Q: Will I be supported for warehousing of personal items during the period of

assignment if I lease my house?

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Education AssistanceQ: Will my child be able to enrol into an International School in Singapore upon my

return to Singapore after my assignment?

Relocation logistics concernsSame questions in 2.26 apply

Pension / InsuranceQ: Once I deregister from the current pension scheme, will I be able to withdraw the

funds?

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FLOWCHARTS

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4 RELOCATION PROCESS FLOWCHART

The fl owcharts below provide a visual depiction of the relocation process covering each stage of a move, namely:• Pre-arrival activities before the employee’s acceptance of the assignment;• Pre-arrival activities after the employee’s acceptance of the assignment;• Post-arrival activities upon the arrival of the employee in the assignment location;

and• Pre-departure activities to be conducted at the current location prior to the employee’s

move to the assignment location.

The fl owcharts should be viewed together with the relocation checklist which aims to provide HR Practitioners with the specifi c steps needed in the various stages of the relocating employee’s move to Singapore or the new assignment location.

4.1 Pre-arrival activities before the employee’s acceptance of the assignment to

Singapore/new assignment location

Note: This could be a Singapore inbound or outbound assignment.

Obtain internal

assignment

approvals based

on estimated

assignment

costings

Prepare

assignment

documents and

identify relocation

entitlements

based on

applicable policy

Conduct pre-

arrival HR

briefi ngs to

discuss the

assignment

package with

the relocating

employees

Arrange 4 to 6 days

pre-assignment

familiarisation

trips, where

provided

Provide school

search assistance

in Singapore/

new assignment

location

+

Legend

Indicates subsequent activities

Indicates concurrent activities+

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Legend


Indicates concurrent activities+Initiate

immigration

services, where

applicable

Identify and

review suitable

insurance plans

for the relocating

employees

Identify and

review suitable

pension plans for

the relocating

employees, where

applicable

+

+

+

Enrol relocating

employees in

the appropriate

insurance plans

Enrol relocating

employees in

the appropriate

pension plans,

where applicable

Perform the

relevant pre-

departure

activities in the

current location,

where applicable

as shown in 4.4

+

4.2 Pre-arrival activities after the employee’s acceptance of the assignment to

Singapore/new assignment location


Initiate relevant

relocation logistics

support (in line

with Company’s

relocation policy)

Obtain

immigration

approvals, where

applicable

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4.3 Post-arrival activities upon the arrival of the employee in Singapore/new

assignment location


Initiate/Provide

relevant

home search

assistance

Initiate

orientation/

settling-in

programmes,

where provided

Conduct

post-arrival HR

briefi ngs and

on-boarding

procedures

Provide relevant

spousal/partner

assistance,

where applicable

Arrange /

Conduct

post-arrival

tax briefi ngs,

where provided

Initiate payment

of employment

allowances/

benefi ts

+

Legend



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4.4 Pre-departure activities to be conducted at the current location prior to the

employee’s move to Singapore/new assignment location


Conduct

pre-departure

HR briefi ngs

to address

relocation

concerns/logistics

Review and

withdraw from

relevant pension

and insurance

plans, where

applicable

Cancel relevant

immigration

documentations,

where applicable

Terminate

corporate lease,

where applicable

Notify relevant

schools of the

departure and

withdrawal of

the child(ren)

++

Initiate relevant

relocation

logistics support,

as provided

Cease relevant

employment/

assignment

package

payments

Arrange/

Conduct pre-

departure tax

briefi ngs, where

provided

++

Legend



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RELOCATION COSTS

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5. UNDERSTANDING RELOCATION COSTS TO THE COMPANY

Companies should understand the cost of relocating their employees to and out of Singapore for budgeting and cost management purposes.

Companies should consider preparing cost estimates for every move based on the assignment compensation and benefi ts provided to the relocating employee, plus the estimated cost of relocation support provided.

Depending on the employee category and assignment type, the relocation support provided can be based on one of the following:

• An expatriate approach where the relocating employee is provided with fullrelocation assistance.

• A local plus approach where the relocating employee is provided with initial and limited on-going relocation support.

• A local approach where the relocating employee is provided with relocation support that is restricted to coverage of the basic activities required.

By capturing all costs relating to the relocation and categorising them appropriately, companies will be in a position to look into areas of cost containment/reduction, and possibly, the return on investment from their relocating employee(s).

5.1 Further Tax Deduction (FTD) Scheme

The FTD scheme was introduced by the Government to assist companies in defraying the cost of recruiting/relocating selected global skilled professionals (P1, P2, Personalised Employment Pass holders and Singaporeans/Permanent Residents of equivalent standing) by allowing a further tax deduction claim when fi ling the corporate tax return. This scheme is available until 2013.

Under this scheme, the maximum amount that companies can claim as qualifying relocation expenses is S$15,000 per employee for a P1 Employment Pass Holder and S$5,000 per employee for a P2 Employment Pass Holder.

For employees relocating with their spouse and unmarried children under 21 years of age, expenses incurred on their one-way relocation airfare, baggage allowance and temporary accommodation costs would qualify as deductible expenses. These would be subjected to a cap of S$5,000 per spouse and S$2,500 per qualifying child, up to a maximum of 2 children.

Companies are able to claim for qualifying recruitment and relocation expenses up to a maximum of S$275,000 per assessment year.

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Companies cannot claim further tax deduction if:

• they already enjoy government grants, incentives or any other government assistance schemes that offset the recruitment or relocation costs of global talent;

• an overseas employee is recruited through intra-company transfer. Intra-company transfer refers to a transfer between “companies in the same group”, which is defi ned for tax purposes to include subsidiaries and associates.

For example: an employee who has worked for Company A in Singapore, before being sent overseas to a related Company B, and was subsequently sent back to Company A, is not eligible for the scheme. An exception would be if the employee had been recruited by and worked for the overseas Company B fi rst, then transferred to Company A in Singapore. In this case, the local company would be able to claim further deduction for the costs of relocating the employee to Singapore only.

Source: MOM website, Income Tax Act (Chapter 134, Section 14L)

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5.2 Relocation Cost Estimates

Presented below are relocating cost estimates covering three scenarios:

• Scenario 1: A relocating employee with family on expatriate terms relocating into Singapore;

• Scenario 2: A new foreign sourced hire with family on non-expatriate terms relocating into Singapore; and

• Scenario 3: A relocating employee with family on expatriate terms relocating from Singapore to Shanghai, China.

The assumptions on which the cost estimates have been prepared are also provided for better clarity. Amounts indicated are estimates only.

Scenario 1: P1 pass holder, Intra-company transferee on expatriate terms

Employee Profi le Global Assignee with a multinational company Family Size 4 (Married with spouse and 2 children) Position Level Senior Management Host Country Singapore

One-time Relocation Costs: (SGD)

Pre-assignment familiarisation trip

- Airfare (round trip business class) 12,248

- Hotel accommodation for 5 days (SGD 325 per day) 1,625

- Per diems for 5 days (SGD 207 per day) 1,035

- Relocation assistance (Orientation, Home Search, School Search) 3,491

Departure management (at home location) 1,000

Relocation airfare (one-way business class) 17,688

Relocation - Air shipment 4,825

Relocation - Sea shipment 18,497

Temporary accommodation in Singapore - 30 days 12,000

Settling-in program (one-day accompanied) 1,164

Immigration services 2,700

Tax services 7,500

TOTAL ONE-TIME RELOCATION COSTS 83,773

* Estimated fi gures may vary according to individual circumstances and be subjected to infl ation

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Notes and Assumptions:

Employee profi le It has been assumed that the calculations will be based on an employee profi le of a global assignee of senior management status and with a family size of 4. The global assignee and his/her family will relocate to Singapore on full expatriate terms. According to the results of the 2011 Relocation Practices for Incoming Global Talent to Singapore Survey, foreign executives on expatriate terms in Singapore are mostly provided with full relocation assistance. This has been taken into consideration in the calculation.

Pre-assignment familiarisation trip A customised pre-assignment visit to provide an overview of the living conditions in Singapore for the foreign executive and his/her spouse. It has been assumed that the pre-assignment trip will be for a duration of 5 days and that the company will reimburse for return airfare, hotel accommodation, per diems, as well as an orientation programme conducted by a qualifi ed relocation consultant. The orientation programme will include a familiarisation tour of Singapore, home search and school search assistance.

Airfare (round trip, business class) It has been assumed that a roundtrip business class airfare for the foreign executive and his/her spouse to Singapore will be reimbursed by the company. The estimated cost of SGD 6,124 per person is based on an average business class return airfare from key departure locations (Hong Kong, Sydney, London, Mumbai and New York) to Singapore for a family size of 2. Source for airfares - www.expedia.com.

Hotel accommodation - SGD325 per day (up to 5 days in Singapore)

It has been assumed that the company will reimburse for reasonable and actual accommodation costs in Singapore for up to 5 days. The estimated cost of SGD 325 per day is based on average daily rate for a double room in a 4-star and above hotel in Singapore. Source for hotel rates - www.expedia.com

Per diem allowance - SGD 207 per day (up to 5 days in Singapore)

Per diem allowance refers to the daily allowance given to employees on overseas trips (usually for business purposes). The allowance is meant to cover certain living expenses incurred overseas such as the cost of meals, transport and other incidental items like laundry, baggage handling, telephone calls, internet service and faxes.It has been assumed that the company will reimburse the foreign executive with a per diem allowance of SGD 207 per day for 5 days during the pre-assignment familiarisation trip.

Relocation assistance - 3 days (Orientation, Home Search and School Search)

Three-day program conducted by a qualifi ed relocation consultant, paid for by the company includes orientation tour, home search and school search programs. The cost has been estimated for use in this cost projection only, and may differ from actual fees charged by relocation vendors.

• Relocation assistance Orientation (one-day accompanied)

A one-day customised orientation program conducted by a qualifi ed relocation consultant, paid for by the company to provide a familiarisation tour and comprehensive guidelines and practical tips on living in Singapore.

• Relocation assistance Home search (one-day accompanied)

A one-day home fi nding programme conducted by a qualifi ed relocation consultant together with a housing agent, paid for by the company to provide guidance on Singapore’s property market, rental procedures and site viewings.

• Relocation assistance School search (one-day accompanied)

A one-day school search programme conducted by a qualifi ed relocation consultant, paid for by the company to provide information on the education system in Singapore, guidance on enrolment procedures and visits to selected schools.

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Departure management (at home location)

The departure management cost of SGD 1,000 has been estimated for use in this cost projection only. Please note that the cost may vary according to the actual home location and excludes any actual costs incurred for lease break on property and the loss arising from the sale of car.

Relocation airfare (one-way business class)

It has been assumed that a one-way business class airfare for the foreign executive, spouse and accompanying children to Singapore will be reimbursed by the company. The estimated cost of SGD 4,422 per person is based on an average business class one-way airfare from key departure locations (Hong Kong, Sydney, London, Mumbai and New York) to Singapore for a family size of 4. Source for airfares - www.expedia.com.

Relocation shipment - air and sea Based on general market practices, it has been assumed that the company will bear the costs of shipment (40 foot container - sea and 750 lbs - air) for a family size of 4 to Singapore for household and personal effects belonging to the foreign executive and his/her family.The estimated cost is based on an average shipment costs from key departure locations (Hong Kong, Sydney, London, Mumbai and New York) to Singapore obtained from relocation vendors.

Temporary accommodation in Singapore - 30 days

Based on general market practices, it has been assumed that the company will reimburse for reasonable and actual accommodation costs for a period up to 30 days upon arrival in Singapore.The estimated cost of SGD 12,000 is based on published rates of a deluxe 2 bedroom apartment in Singapore. Please note that temporary accommodation cost which may be incurred in the home location has been excluded in this calculation.

Settling-in program (one-day accompanied)

A one-day settling-in programme conducted by a qualifi ed relocation consultant, paid for by the company to provide comprehensive settling-in services. This cost is estimated for the purpose of this cost projection only and may differ from actual fees charged by relocation vendors.

Immigration services It has been assumed that the company will engage a vendor to assist the foreign executive and his/her family members with the application of employment pass and dependent passes. The cost of SGD 2,700 has been estimated for use in this cost projection and may vary from the actual charges imposed by immigration vendors. It also excludes miscellaneous costs e.g. translation of documents and other incidental costs.

Tax services It has been assumed that the company will pay for standard tax services in Singapore (e.g. tax consultation and fi ling of tax returns) on an annual basis.The cost of SGD 7,500 has been estimated for use in this cost projection and may vary from the actual charges imposed by tax agents.

Exchange rates The exchange rates used in this calculation are based on published rates from www.oanda.com as at 1 March 2012.USD 1 : SGD 1.24709CHF 1 : SGD 1.39017

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Scenario 2: P2 pass holder, New Foreign Sourced Hire on non-expatriate terms

Employee Profi le Foreign executive with a multinational company relocating from the United States / Europe Family Size 4 (Married with spouse and 2 children) Position Level Middle Management Host Country Singapore


Relocation airfare (one-way economy class) 8,120



Temporary accommodation in Singapore - 30 days 9,000


Tax services 7,500



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Scenario 2: P2 pass holder, New Foreign Sourced Hire on non-expatriate terms

Employee Profi le Foreign executive with a multinational company relocating from the United States / Europe Family Size 4 (Married with spouse and 2 children) Position Level Middle Management Host Country Singapore


Employee profi le It has been assumed that the calculations will be based on an employee profi le of a new foreign-sourced hire of middle management status and with a family size of 4. According to the results of the 2011 Relocation Practices for Incoming Global Talent to Singapore Survey, new foreign sourced hires on non-expatriate terms in Singapore may be employed on local plus terms i.e. terms and conditions of employment is not totally in line with local terms, but includes additional benefi ts like partial relocation assistance. This has been taken into consideration in the calculation.

Relocation airfare (one-way economy class)

It has been assumed that a one-way economy class airfare for the foreign executive, spouse and accompanying children to Singapore will be reimbursed by the company. The estimated cost of SGD 2,030 per person is based on an average economy class one-way airfare from key departure locations in the United States/Europe (New York, London and Frankfurt) to Singapore for a family size of 4. Source for airfares - www.expedia.com.

Relocation shipment - air and sea Based on general market practices, it has been assumed that the company will bear the costs of shipment (40 foot container - sea and 500 lbs - air) for a family size of 4 to Singapore for household and personal effects belonging to the foreign executive and his/her family.The estimated cost is based on an average shipment costs from key departure locations in the United States/Europe (New York, London and Frankfurt) to Singapore obtained from several relocation vendors.

Temporary accommodation in Singapore - 30 days

Based on general market practices, it has been assumed that the company will reimburse for reasonable and actual accommodation costs for a period up to 30 days upon arrival in Singapore.The estimated cost of SGD 9,000 is based on published rates of a standard 2 bedroom apartment in Singapore. Please note that temporary accommodation cost which may be incurred in the home location has been excluded in this calculation.


Tax services It has been assumed that the company will pay an estimated cost of SGD 7,500 for standard tax services in Singapore (e.g. tax consultation and fi ling of tax returns) during the transfer year. The tax agent fees has been estimated for use in this cost projection and may vary from the actual charges imposed.

Exchange rates The exchange rates used in this calculation are based on published rates from www.oanda.com as at 1 March 2012.USD 1 : SGD 1.24709CHF 1 : SGD 1.39017

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Scenario 3: Intra-company transferee on expatriate terms

Employee Profi le Global Assignee with a Singapore-based company Family Size 4 (Married with spouse and 2 children) Position Level Middle - Senior Management Host Country Shanghai


Pre-assignment familiarisation trip

- Airfare (round trip business class) 7,462

- Hotel accommodation for 5 days (SGD 185 per day) 925

- Per diems for 5 days (SGD 100 per day) 500

- Relocation assistance (Orientation, Home Search, School Search) 2,241

Departure management (in Singapore) 1,000

Relocation airfare (one-way business class) 12,060



Temporary accommodation in Shanghai - 30 days 8,426

Settling-in program (one-day accompanied) 766


Tax services 9,596



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Employee profi le It has been assumed that the calculations will be based on an employee profi le of a global assignee of middle to senior management status and with a family size of 4. The global assignee and his/her family will relocate to Shanghai on full expatriate terms. This has been taken into consideration in the calculation.

Pre-assignment familiarisation trip A customised pre-assignment visit to provide an overview of the living conditions in Shanghai for the foreign executive and his/her spouse.It has been assumed that the pre-assignment trip will be for a duration of 5 days and that the company will reimburse for return airfare, hotel accommodation, per diems, as well as an orientation programme conducted by a qualifi ed relocation consultant. The orientation programme will include a familiarisation tour of Shanghai, home search and school search assistance.

Airfare (round trip, business class) It has been assumed that a roundtrip business class airfare for the foreign executive and his/her spouse to Shanghai will be reimbursed by the company. The estimated cost is for a family size of 2. Source for airfares - www.expedia.com.

Hotel accommodation - SGD185 per day (up to 5 days in Shanghai)

It has been assumed that the company will reimburse for reasonable and actual accommodation costs in Shanghai for up to 5 days. The estimated cost of SGD 185 per day is based on average daily rate for a double room in a 4-star and above hotel in Shanghai. Source for hotel rates - www.expedia.com

Per diem allowance - SGD 100 per day (up to 5 days in Shanghai)

Per diem allowance refers to the daily allowance given to employees on overseas trips (usually for business purposes). The allowance is meant to cover certain living expenses incurred overseas such as the cost of meals, transport and other incidental items like laundry, baggage handling, telephone calls, internet service and faxes.It has been assumed that the company will reimburse the foreign executive with a per diem allowance of SGD 100 per day for 5 days during the pre-assignment familiarisation trip.

Relocation assistance - 3 days (Orientation, Home Search and School Search)

Three-day program conducted by a qualifi ed relocation consultant, paid for by the company includes orientation tour, home search and school search programs. The cost has been estimated for use in this cost projection only, and may differ from actual fees charged by relocation vendors.

• Relocation assistance Orientation (one-day accompanied)

A one-day customised orientation program conducted by a qualifi ed relocation consultant, paid for by the company to provide a familiarisation tour and comprehensive guidelines and practical tips on living in Shanghai.

• Relocation assistance Home search (one-day accompanied)

A one-day home fi nding programme conducted by a qualifi ed relocation consultant together with a housing agent, paid for by the company to provide guidance on Shanghai's property market, rental procedures and site viewings.

• Relocation assistance School search (one-day accompanied)

A one-day school search programme conducted by a qualifi ed relocation consultant, paid for by the company to provide information on the education system in Shanghai, guidance on enrolment procedures and visits to selected schools.

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Departure management (at home location)

It has been assumed the departure management cost to be SGD 1,000, estimated for the purpose of this cost projection only. Please note that the costs may vary according to the actual home location and excludes any actual costs incurred for lease break on property and the loss arising from the sale of car.

Relocation airfare (one-way business class)

It has been assumed that a one-way business class airfare for the foreign executive, spouse and accompanying children to Shanghai will be reimbursed by the company. The estimated cost is for a family size of 4. Source for airfares - www.expedia.com.

Relocation shipment - air and sea Based on general market practices, it has been assumed that the company will bear the costs of shipment (40 foot container - sea and 750 lbs - air) for a family size of 4 to Shanghai for household and personal effects belonging to the foreign executive and his/her family.The estimated cost is based on an average shipment costs from key departure locations (Hong Kong, Sydney, London, Mumbai and New York) to Shanghai from relocation vendors.

Temporary accommodation in Shanghai - 30 days

Based on general market practices, it has been assumed that the company will reimburse for reasonable and actual accommodation costs for a period up to 30 days upon arrival in Shanghai.The estimated cost of SGD 8,426 is based on average market rate for a 2-bedroom serviced apartment in Shanghai. Please note that temporary accommodation cost which may be incurred in Singapore has been excluded in this calculation.

Settling-in program (one-day accompanied)

A one-day settling-in programme conducted by a qualifi ed relocation consultant, paid for by the company to provide comprehensive settling-in guidelines. The cost of SGD 766 per day has been estimated for the purpose of this cost projection only and may differ from actual fees charged by relocation vendors.


Tax services It has been assumed that the company will pay for standard tax services in Shanghai (e.g. tax consultation and fi ling of tax returns) on an annual basis.The cost of SGD 9,596 has been estimated for use in this cost projection and may vary from the actual charges imposed by tax agents.

Exchange rates The exchange rates used in this calculation are based on published rates from www.oanda.com as at 1 March 2012.USD 1 : SGD 1.24709CHF 1 : SGD 1.39017CNY 1 : SGD 0.19827

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6. USEFUL LINKS

This section serves as a quick guide that HR practitioners can refer to and share with their relocating employees. It provides for useful information on relocation into or out of Singapore.

Singapore Citizen / Permanent Resident Employees

6.1 Maintaining Ties/Returning To Singapore

• Overseas Singaporean Portal www.overseassingaporean.sg

• Contact Singapore www.contactsingapore.sg

6.2 Pension


6.3 Permanent Residency In Singapore


6.4 Admissions For Returning Singaporeans

• Ministry of Education www.moe.gov.sg


6.5 Singapore Immigration



6.6 Singapore Education System

• Information on foreign system schools/international schools in Singapore www.cpe.gov.sg/ www.contactsingapore.sg/

• Information on international student admissions to local schools in Singapore www.moe.gov.sg/

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General Information for Singapore Inbound/Outbound Employees

6.7 E-Transactions

• Most government transactions in Singapore may be carried out via online means. More information on e-transactions can be found on the eCitizen’s website at www.ecitizen.gov.sg.

6.8 Community Centres And Clubs

• Found throughout Singapore, community centres and clubs organise programmes and activities that provide opportunities for social interaction among fellow residents. More information can be found on the People’s Association’s website at www.pa.gov.sg.

6.9 Outreach Programmes

• Various outreach programmes and activities are organised to promote interaction and dialogue among different ethnic groups so as to forge strong social and community bonds in Singapore. More information can be found on the OnePeople.sg’s website at www.onepeople.sg.

6.10 Singapore Tax System

• Inland Revenue Authority of Singapore www.iras.gov.sg

6.11 Pension Alternatives In Singapore

• Ministry of Finance - Supplementary Retirement Scheme app.mof.gov.sg

6.12 Singapore Education System

• Ministry of Education www.moe.gov.sg/

• Singapore Education app.singaporeedu.gov.sg

6.13 Housing In Singapore


• Council for Estate Agencies – Public register of estate agents and salespersons www.cea.gov.sg

6.14 Healthcare In Singapore

• Ministry of Health www.moh.gov.sg


6.15 Settling-In Programme

• Ministry of Manpower – Singbound/Homebound program www.singbound.sg

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Departure management Assistance/Reimbursements provided by the company typically for disposal of vehicle(s)/accommodation in the home location prior to the move e.g. early lease break, sale of vehicle(s), home property rental/ management.

Foreign executives Professionals who are foreign nationals who have relocated to Singapore either on expatriate or non-expatriate terms. They should be in possession of recognised qualifi cations and skill-sets and hold an Employment Pass.

Foreign executives on expatriate terms

Foreign executives who are provided with comprehensive assignment related benefi ts such as housing, schooling, tax assistance, mobility premiums etc.

Foreign executives on non-expatriate terms

Foreign executives whose terms and conditions of employment in Singapore would generally be in line with local terms but may refl ect limited allowances/ benefi ts such as housing and schooling.

Global talent Talent pool which includes foreigners as well as Singaporeans.

Guided home search Guided home search using qualifi ed relocation consultants or housing agents paid for by the company.

Home based approach A compensation and benefi ts plan which is based on the employee’s home country plan. Typically this applies to employees who are sent overseas on assignment.

Home country/Point of origin Home country/point of origin of the assignee prior to commencing the international assignment or the country where the assignee retains home ties.

HR briefi ng HR briefi ng to address relocation/reintegration issues relating to the move, career, settling-in etc.

Intra-company transferees Foreign executives transferred from within the organisation.

Local approach An employee who is hired into the host location whereby the terms and conditions of employment are in line with local employees.

Local-plus approach An employee who is transferred to a new location or directly hired into a new location i.e. not the home country. The terms and conditions of employment at the new location may not be totally in line with local terms but may refl ect certain additional benefi ts such as relocation, housing and schooling.

Long term incentive plans A reward system that aligns the interest of employees to that of the company by delivering rewards which are linked to performance as well as tenure. Such plans are designed to increase employee productivity, morale and loyalty as well as to drive business performance, thus increasing shareholder value.

New foreign sourced hires Foreign executives recruited directly from overseas into Singapore.

Orientation and settling-in programmes

Specially designed programmes aimed at providing comprehensive guidelines and practical tips on how best to settle in. These programmes are often conducted by external relocation consultants and may include area familiarisation tours and setting in services.

Per diem A daily allowance to cover miscellaneous expenses incurred on meals, transport and incidentals.

Pre-assignment familiarisation trip A customised exploratory trip, conducted prior to the transfer, to provide an overview of the living conditions in Singapore

Relocating employee An employee who is transferring into or out of Singapore.

Repatriation The process of the international assignee’s return to their home country.

Returning Singaporeans An overseas Singaporean or Singapore Permanent Resident who has returned to work in Singapore.

Section 5 fund An employee retention incentive (pension fund) approved by the Comptroller of Income Tax.

Tax Equalisation Method to ensure that the assignee, as a result of undertaking an international assignment, neither gains nor loses with regards to income tax. Under Tax Equalisation, the employer normally settles the employee’s actual tax liabilities in the applicable tax jurisdictions whilst withholding hypothetical tax equivalent to what the assignee would have paid “at home”.

Worldwide income Income earned anywhere in the world and used to determine taxable income.

7. GLOSSARY OF TERMS

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Documents

Relocation Handbook for HR Practitioners in Singapore