SINGAPORE: Additional information on Inter Company Transfers (ICT) and Letter of Consent (LOC) changes

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Starting 1 May 2021, Dependant Pass (DP) holders who are currently working with a Letter of Consent (LOC) in Singapore will be allowed to continue working until the validity of their current approved Letter of Consent.
Singapore Update on LoC ICT Black Mountain HR Payroll Services

FOREIGN employees of multinational corporations who are posted to the company’s Singapore branch as an intra-corporate transferee can no longer bring their family members with them via dependant’s passes or long-term visit passes.

To be treated as an Intra-corporate transferee (employees must have worked for their company for at least one year before being posted to the branch, affiliate or subsidiary in Singapore.

There is however an exception that applies to intra-corporate transferees coming from a country that has a free trade agreement (FTA) with Singapore that allows them to bring their families with them.

This means that the family of workers from India and Australia, who are covered by the India-Singapore Comprehensive Economic Cooperation Agreement and the Singapore-Australia FTA respectively, can still apply for dependant’s passes or long-term visit passes, subject to prevailing criteria.

An ICT is also generally not eligible for future employment in Singapore upon the expiry/termination of his/her work pass, or for permanent residency

Starting 1 May 2021, Dependant Pass (DP) holders who are currently working with a Letter of Consent (LOC) in Singapore will be allowed to continue working until the validity of their current approved Letter of Consent. Subsequent to that, they will need to apply for a work pass in Singapore– either an S Pass or an Employment Pass, or work permit. Previously, if DP holders wanted to work in Singapore, a Letter of Consent had to be applied to the Ministry of Manpower by the employer, upon the approval of which they could start their employment.

If DP holders who run local businesses are either operating as the sole proprietor, a partner, or a director with at least 30% of the shares of the company and creating employment at their local locations, a letter of consent will allow them to continue to work their businesses. However, there are conditions.

For the business to meet the local employment requirement, it must hire at least one Singaporean or permanent resident earning at least S$1,400 and pay contributions to the employee’s Central Provident Fund (CPF) account for at least three months.

With this change, spouses and other dependents of Employment Pass (EP) and S-Pass holders will face the same requirements as other foreigners who want to work in Singapore.

Black Mountain Group

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