1. What is an EP? What is a self-employed EP? What are the differences?
EP stands for Employment Pass, a long-term work visa issued to senior management personnel in Singapore. Below EP is the S Pass for mid-level technical staff, and below that is the Work Permit for lower-level workers. EP can only be applied through a Singapore company/employer to the Ministry of Manpower. If you currently don't have an employer, you can register your own company to employ yourself to apply for EP; this is called "self-employed EP". Whether through another employer or your own company, the EP obtained is the same, with no difference.
2. After getting a self-employed EP, does the company need to be genuinely operating?
Yes. The initial EP approval is generally valid for 2 years. For PR application or EP renewal, the government will assess the company's actual operations, such as having a physical office, hiring local employees, signing contracts, and business revenue. Only genuinely operating companies can support subsequent PR applications or EP renewals.
3. How soon after getting an EP can I apply for PR? How soon for citizenship?
According to government rules, EP holders can apply for PR after 6 months, and after having PR for 1 year (2 years if applying as a family) they can apply for citizenship. However, unless the applicant is outstanding and the company grows rapidly, it is generally recommended to work and live in Singapore for 2 years before applying for PR for higher success. During this period, besides economic contributions, social contributions are also assessed.
4. After getting an EP, can I apply for long-term visas for my spouse, children, and parents?
Yes. Your spouse and minor children can be approved for Dependent Pass (DP), your parents can be approved for Long Term Visit Pass (LTVP), both valid with your EP validity. Note that EP holders can only apply for LTVP for their own parents, not for spouse's parents.
5. Can family members with DP or LTVP study or work in Singapore?
Minor children holding DP are eligible to attend government schools with higher priority than foreign students. Spouses with DP and parents with LTVP cannot work unless they apply for a Letter of Consent (LOC) work permit, which is easier to obtain given their long-term visa status compare to foreigners without a long term pass.
6. What conditions must the company meet to be considered compliant?
Generally, the company needs to meet these conditions: 1. Have a pysical office and lease contract; 2. Hire local employees and pay salary and CPF; 3. Continuously sign business contracts, issue invoices, and generate business revenue; 4. Maintain proper accounting, financial statements, and tax filing; 5. EP holder receives regular monthly salary and pays personal income tax annually.
7. How much personal income tax does an EP holder pay?
Singapore uses a progressive tax system with a top rate of 24%. The average rate for EP salaries is about 10%. For example, with an annual income of SGD 120,000, the tax is SGD 7,950 (6.6%); for SGD 240,000 income, tax is SGD 28,750 (12%); for SGD 300,000 income, tax is SGD 40,550 (13.5%). Actual rates can be lower due to reliefs and deductions.
8. Is there a residency requirement for EP holders?
No strict requirement, but you are recommended to stay in Singapore as longer as possible to take care of your company and demonstrate commitment.