What Are The Most Effective Strategies To Reduce The Burden Of US Taxation In Singapore?


The month of February is yet not too late to plan for 2021 New Year Resolutions to make this year full of convenience with no tax fuss and dig the ground for tax savings in the upcoming year. The professional of US taxation in Singapore believes that an effective US expat tax strategy that is planned at the beginning of the year brings fruitful results in the favor of US expatriates. 

How to lower the burden of US taxation is one of the most talked-about concerns among US expatriates living overseas. The increasing complications in annual federal tax return provision and its exclusions, making it difficult for expats to file the return. US expat taxes in Singapore are difficult to overcome, but there are many effective tax strategies that may help to ward them off.

  • Hire a USA tax expert in Singapore- The most difficult thing to understand in the world is the US taxation provision for expatriates. To overcome this concern, it is the unparalleled expertise and knowledge of US taxation specialists that may help you create an effective plan to reduce the complications involved in working overseas by managing compensation and US taxation issues. The professionals of US taxation in Singapore will create the most effective strategies to reduce the tax amounts and make expatriates eligible for exclusions.
  • Pay consideration to deductions- Another smart piece of effective tax reduction strategy is that US expats are allowed to claim IRS deductions in order to reduce their tax amount. A list of deductions for US tax in Singapore are available for expatriates to lower their annual taxable income for the year and avoid dual payment of tax. US tax expats in Singapore can avail one of two tax deduction options to reduce their tax liability.
  • Foreign Earned Income Exclusion- Expats are allowed to claim the Foreign Earned Income Exclusion (FEIE) by filing the IRS Form 2555 to reduce a certain amount of the US tax. To claim the FEIE, expats need to qualify the FEIE eligibility criteria which again needs a strategy of US expat tax experts. For this, you need to prove that either you have lived outside the US for 330 days or you’re a permanent resident of a foreign country. To prove any of these criteria requires a well-planned strategy of an experienced tax specialist.
  • Foreign Tax Credit (FTC) – The income tax rates of Singapore are usually higher than those in the US and many other foreign countries. So, the US expats living or working in Singapore are burdened with higher tax rates. To reduce their annual tax stress, they can claim the FTC as an exclusion allotted especially to US expats in Singapore to reduce their annual tax obligations. Also, expats are allowed to carry forward the FTC for up to a maximum of 10 consequent years.
  • Don’t overlook tax withholding- As a self-employed individual, if you received a bonus, commission, or faced a tax windfall in previous years, be prepared to see a huge tax bill or penalty for underpayment of tab obligation. To avoid such dreadful situations, it is recommended by the expert on American tax in Singapore to make payment quarterly of at least 110% of the previous year’s tax liability. To resolve the tax windfall issues, for instance sale of stock or business, consult the tax expert to get a better understanding of your overall tax obligation and how to survive your tax liability for this year.

There are several strategies that can be imposed by US expat tax experts in Singapore which will not only help you eliminate your current tax bill but also allow you to save for the future. To know more about the expat tax deduction and saving strategies, consult the most experienced US taxation expert in Singapore.


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