Originally posted by: Common Courtesy
Not outside the country, but having moved around plenty on anothers ticket:
Standard Relo packages usually cover what the IRS looks at.
2-3 days temp housing before move
Packing & shipping of furnishings May be taxed if Singapore has a VAT
Transportation of vehicles (one per person and possibly up to 4) May wanna put car in storage here, get company provided car if needed over there etc
30-60 days temp housing at new place (per diem or actual food/living/misc costs). For int'l moves there are companies in Singapore that specialize in finding expat housing. Often you take a pre-move trip and secure/approve housing. You don't wanna ship your possesions int'l and move into one temp place only to move again in couple months. You'll never get any work done.
Costs can be as a family or per person (I have had both) COLA salary increase based partly on family size
Transportation of self/family. Also annual trip to USA, their help on contingencies such as family death require yoiur return for funural etc.
Purchasing/selling costs of house Prolly don't wanna sell
Lease breaking and/or deposits
Utility deposits
Misc allowance for expenses at new place (I was given 2K once to cover registration / licenses, deposits, etc)
Expenses for 1 house hunting trip at new location prior to move
I used to work in this field (international relocaion).
Is your company large, and who is their CPA firm?
The CPA firm may have a divison specializing in int'l relocations. If so, you and your company should meet with them. They can tell you typical relo package for Singapore, and potential tax consequeces (more on this below).
How long are you planning to work in Singapore?
If it's for the typical 3 year assignment, prolly don't wanna sell your house here. Particularly if you're gonna return to your current area. Before getting into this further, let us know if you're gonna sell (despite my suggestion not to), and whether you'll rent in Singapore (best choice IMO unless you're gonna be there permantly).
Most keep their home. Be aware that homeowners insurance increases for a vacant home. Many keep some of their posessions in storage here, the company pays.
What is your family status? Do you have kids etc (private school may be necessary etc).
IMO, an important concept to establish from the begining is whether you expect to adopt a Singaporian lifestyle, or you want the company to help maintain the US lifestyle you have in CA.
Example, I've seen execs from Indiana sent to Paris. They expected the same lifestyle, a big house with a yard and a pool. That cost a ton of money in Paris where most people live in appts/townhouses. Should be given a COLA adjustment while in Singapore that allows to eat the same foods as here, or are you willing to go native?
Many of the reimbursements and /or expenses may not be tax deductible. So, some of the payments by the company on your behalf may need to be "grossed up". In other words, some of these payments may need to reported on your W2, and since you can't deduct the cost you'll have extra income taxed. They need to pay that in for you, plus that payment itself is taxable. You will also continue to be taxed in the USA while in Singapore. You may need professional tax help paid for by the company so you legally deal with the US and foreign taxes.
Int'l relos can be complicated and expensive. It's uaually no good for you or the employer if you're unhappy over there. Everything should be planned out and costs/taxes calculated before you commit so you know what to expect (and your expectations actually happen).
The CPA's can likely save you and the company much money by proper planning.
Fern
my home country is near Singapore...
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