Need assistance navigating remote work role for a SG startup

[jfay]

Hi all. Malaysian here.

I was recently offered a remote role based in KL for a Singaporean startup/SME that has no legal entity/vehicle in Malaysia. On the contract, I am considered as an “independent contractor”, and this is my first foray going into freelancing/contracting work.

Looking through online and on this subreddit, I’ve seen some conflicting answers so far, so I would like to seek confirmation on the below questions I have -

1) I do plan to negotiate for a higher salary. Depending on the outcome of my negotiation, if my monthly gross salary exceeds RM 10,000, will I be contacted by my banks (Maybank/CIMB) to explain these funds coming in or face any issue?

2) One thing I did ask the company is if my salary would be paid in RM or SGD. The answer I received is that the amount would be stated in RM on the invoice/payslip, but it will be remitted as SGD from the company to my bank account, as my salary receiving date is “within 7 days of the end of month” and they explained that it would take time for the banks to process the remittance. Would this mean that my basic salary will fluctuate depending on the forex rate?

3) Due to the above 2 factors, would it be a good idea to open a multi-currency account like Wise or Paypal to receive my salary?

4) Would it be a good idea to open a sole proprietorship with SSM for tax purposes? Are there any major benefits to doing so?

5) To confirm, I would be paying Malaysia’s income tax and not Singapore’s income tax right? How do I declare my tax without an EA form from my employer?

6) Would I face issues in the future if I’m applying for credit cards, fixed deposits or car/housing loans? I do plan to submit 12% from the basic salary as my personal contribution to EPF, as well as the additional 12% provided for the “employer’s contribution”.

7) Would it be overkill to hire a lawyer or tax accountant to cover my ass in case anything goes wrong?

8) Anything else that I’d need to take note of? Any tips/advice on going into remote work would be much appreciated too as I’m stressing out over this offer due to overthinking.

Thank you in advance!

 

[allenkrookham]

@jfay

1. Just furnish your salary slip when asked for proof.
2. Yes. After deducting TT fees etc.
3. Up to you. Please note on the restrictions from Wise when doing withdrawal.
4. Better that way as you are seen as independent contractor. Payment goes to that sole prop and you can operate/use it to buy things like laptop etc. Easier for accounting too.
5. Yes you pay to lhdn not iras. You will be filling in the form B. If unsure, engage an accountant/tax agent.
6. No difficulties if you have proper paperwork (salary slip, bank statement, consistent cashflow etc)
7. No it’s not overkill, only be wary of overcharged.
8. Nothing to stress out. Probably only during filing taxes time, but if you stress, hire an accountant/tax agent to ease your mind.

Been there done that. All the best!

 

[jfay]

@allenkrookham Thanks for the answers! Could you share any resources on where I can look for affordable lawyers/tax agent since you've had experience in remote work?

 

[allenkrookham]

@jfay Urm to each of their own ser due to proximity. Maybe can start asking contacts around relatives/friends. If no, can dm me.

 

[biblequestions]

@jfay Just want to point out for 2 and 3:

(2) I don't think it will fluctuate too much on your side. If your salary is MYR 10,000 and the exchange rate is 3.52 (as it is now), the company pays you S$2844.29. If the exchange rate is 3.50, the company pays you S$2857.14. Either way, you still get MYR 10,000 per month (less any transaction fees). The only fluctuation should only be on their end.

(3) Don't use Paypal, it's ridiculously bad. I would highly recommend opening a CIMB Singapore account (and a CIMB MY account if you don't already have one). CIMB SGD-MYR is consistently the cheapest transfer from SGD to MYR because there are no fees. You could ask to be paid in SGD (CIMB SG Account) and transfer to your CIMB MY account with 0 fees. The only caveat to this is that the rates are only good during working hours ie. 9am-6pm. Anytime outside of those hours, you are probably better off using Wise to transfer. Would still recommend opening CIMB bank accounts

 

[jfay]

@biblequestions Hi there, thanks for the reply! Just to clarify further on the CIMB Singapore account -

1) In that case, would there be a difference if the employer remitted SGD or MYR to the CIMB SG bank account?

2) Looking online, are you referring to the Fastsavers account?

 

[biblequestions]

@jfay (1) I would suggest opening a Singapore account and asking to be paid in SGD. That could also speed up the payment so you'll receive it before the 7th of the following month because bank transfers are instant. Notwithstanding that you are to be paid in MYR, Finance can just use the exchange rate that day (https://www.cimbclicks.com.sg/sgd-to-myr) and when you get the money, you can instantly transfer to yourself to minimise any Forex slippage. Alternatively, you can just suggest to be paid in SGD (good idea anyway because the currency seems stronger) and take the opportunity to negotiate your salary upwards, ~2700 SGD or even higher.

I'm not the biggest fan of this arrangement where they take up to 7 days to pay you and they pay in SGD. It literally takes 20 seconds to transfer on Wise (even Western Union takes 1 business day at most) and any local interbank transfer should be instant.

(2) Yes, that's what I have. The rates are technically not the best but the absence of fees ensures that you get the best bang for your buck.

 

[karmel]

@jfay Do you mind sharing what is your job?

 

[kimberl321]

@jfay In the same pickle, but just to point out Wise has RM20k limit, or sgd5k.

 

[kaccy]

@jfay No.1 - just update your personal details accordingly especially employment. If bank noted you are a freelancer, it is fine. The bank not only looking into your incoming funds, but outgoing as well. That's for money laundering. Trust thay you use for normal stuff like expenditure, bill payment, investment, then there is issues .

No. 6 - declare your taxes. Those are your documents for loan or credit card application down the road.