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
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