Singapore HR and tax alert Immigration Update – Long Term Visit Pass

Transcription

Singapore HR and tax alert Immigration Update – Long Term Visit Pass
November 2014
HR and tax alert
Singapore
Immigration Update – Long Term Visit Pass
Summary
Key issues
The number of marriages between
Singaporeans and foreigners has been rising
in recent years. To support cross-cultural
marriages and foreign spouses adjusting to
long term stay in Singapore, the Immigration
& Checkpoints Authority (ICA), in
conjunction with the Ministry of Social and
Family Development, has revised the Long
Term Visit Pass (LTVP) application process
to allow couples to better evaluate their
options for long term stay in Singapore.
Revised LTVP Process - Pre-marriage
LTVP Assessment
Accordingly, the Ministry of Manpower
(MOM) has revised their conditions for
foreign spouses of Singaporeans seeking
employment in Singapore.
The LTVP+ scheme which came into effect 1
April 2012 remains available. Under the
LTVP+ scheme, eligible foreign spouses of
Singaporeans are granted a longer-term stay
in Singapore and also enjoy additional
healthcare subsidies and employment
benefits as compared to those under the
LTVP scheme.
Effective 1 January 2015, prospective
Singaporean-foreigner couples are
encouraged to submit an application for a
Letter of LTVP Eligibility (LLE) to the ICA for
consideration.
The LLE application should be submitted
prior to marriage and will provide a more
definitive direction on whether the foreign
spouse may qualify for the long term
immigration pass of an LTVP.
Upon approval, the LLE will be valid for 1
year during which the couple may then
proceed to apply for an LTVP. Without an
LLE, couples may still apply for an LTVP
after marriage, but will be subject to a
longer processing time of 6 months or more.
It should be noted that all LTVP applications
are assessed by the ICA based on a set of
prevailing criteria, including the ability for
the Singaporean sponsor to support the
LTVP holder and therefore assessed based
on its own merits.
EY | Assurance | Tax | Transactions | Advisory
Employment for foreign spouses with an LTVP
From 1 February 2015, the MOM will issue a Letter of Consent (LOC) to foreign
spouses on LTVP who wish to work in Singapore. Employers can submit the LOC
application via EP Online with no administrative fee.
This employment privilege is currently in place for LTVP+ holders and eligible
Dependant’s Pass holders, and will be extended to regular LTVP holders who are
foreign spouses of Singaporeans. This is in line with the MOM’s intention to
streamline the types of work passes for foreign spouses of Singaporeans.
Transitional rules for foreign spouses currently holding a Work Permit
From 1 May 2015, the MOM will no longer issue or renew Work Permits granted on
a concessionary basis to foreign spouses of Singaporeans. Instead, all foreign
spouses should obtain an LOC or a mainstream work pass for employment in
Singapore.
For a foreign spouse’s Work Permit expiring between 1 January and 30 April 2015
with validity of at least 3 months
The foreign spouse should apply for an LTVP/LTVP+ with the ICA. Once approved,
the employer may assist to apply for an LOC with MOM.
For a foreign spouse’s Work Permit expiring between 1 January and 30 April 2015
with validity of less than 3 months
The MOM will renew the Work Permit for a final 6 months period during which the
foreign spouse should apply for an LTVP/LTVP+ with the ICA. Once approved, the
employer may assist to apply for an LOC with MOM.
What this means to employers

Employers now have the option of extending employment to LTVP holders who
are foreign spouses of Singaporeans on an LOC, without having to apply for an
independent work pass.

Employers will not be subject to prevailing foreign workers quota, levy
impositions and source country restrictions when applying for an LOC for a
LTVP holder.

With a greater pool of prospective job candidates (LTVP holders) in Singapore,
employers should review their hiring strategy to ensure that they optimize the
available work force options in the Singapore market whilst maintaining an
efficient foreign workers quota, if required.
About EY
EY is a global leader in assurance, tax,
transaction and advisory services. The
insights and quality services we deliver help
build trust and confidence in the capital
markets and in economies the world over. We
develop outstanding leaders who team to
deliver on our promises to all of our
stakeholders. In so doing, we play a critical
role in building a better working world for our
people, for our clients and for our
communities.
EY refers to the global organization, and may
refer to one or more, of the member firms of
Ernst & Young Global Limited, each of which
is a separate legal entity. Ernst & Young
Global Limited, a UK company limited by
guarantee, does not provide services to
clients. For more information about our
organization, please visit ey.com.
Ernst & Young LLP is a client-serving member
firm of Ernst & Young Global Limited
operating in the US.
About EY’s Human Capital services
Our global mobility team advises many of the
world’s largest global employers – as well as
those just venturing into their first foreign
country. Our performance and reward
professionals help you design compensation
programs and equity incentives that really
engage your key people. We help you meet
your executive tax compliance obligations,
stay on top of regulatory change, manage
your global talent effectively and improve
your function’s strategic alignment. It’s how
EY makes a difference.
© 2014 EYGM Limited.
All Rights Reserved.
EYG no. OC00000357
ED None
This material has been prepared for general
informational purposes only and is not
intended to be relied upon as accounting, tax,
or other professional advice. Please refer to
your advisors for specific advice.
Grahame Wright
Tel:
+65 6309 8701
Email: [email protected]
Lily Cheang
Tel:
+65 6309 8670
Email: [email protected]
2
www.ey.com
HR and tax alert