Singapore

Predominant features and advantages of Singapore Company:

  • Legislation - http://www.mas.gov.sg/
  • Straightforward and easy offshore company incorporation in only 1 or 2 days. Well developed computerized company incorporation system facilitates the process to be rapid, significantly reducing the red tape.
  • Tax rates for corporations are still relatively low where profits of up to $300,000 will have a tax rate of only 8.5% while those exceeding said profit is capped at a flat rate of 17%. However, if the income coming from a foreign source is received in Singapore and meets certain qualifying conditions, then the company does not have to pay any taxes.
  • A newly formed company is also 0 % exempt from paying taxes on the first 100K annual profits for its first three years given that it meets certain requirements such as having a maximum of 20 shareholders where are least one shareholder owns 10% of the shares.
  • Singapore companies are taxed at a rate of 22% on income generated in Singapore; foreign income is not taxed at all.
  • Singapore Companies are taxed at a lower rate than personal income.
  • All companies to enjoy approx. 8.5% corporate tax rate for profits up to 300K.
  • Overall company tax rate lowered to flat 17%.
  • There is no Singaporean capital gains tax.
  • Specific licenses are required for specific businesses (e.g. Tour Operators requires license from Singapore Tourism Board).
  • Relaxed immigration and foreign ownership policy allows 100% foreign shareholdings in all sectors. If you require settling perpetually in the country, Singapore has lenient immigration procedures which makes it simple to obtain Permanent Residence Status.
  • Singapore does not levy a withholding tax on dividends. Interest, royalties or rental of equipment payments to non-residents are subjects to a 15% withholding tax.
  • Dividends paid by a Singapore Private Limited Company are tax exempt.
  • The Singapore tax system is territorial. Income tax is levied on the net income of companies from sources within Singapore and on foreign source income if remitted into Singapore. Non-resident Singapore companies and businesses are taxed on the same basis.
  • Annual Accounts must be filed within 6 months of financial year end.
  • Audit must be completed for non-exempt companies (where the shareholder is a Company) and for small exempt companies (shareholders are individuals) where turnover is more than S$5 Million;
  • Small exempt companies are no longer required to audit their accounts but are still required to prepare the complete set of Directors’ Report according to the Standard Accounting Practice.
  • Singapore Company must file annual company returns and income tax returns.
  • Company’s Registered Office and licensed Secretary / Registered Agent must be domiciled in Singapore.
  • Singapore has an extensive double taxation avoidance treaty network with more than 40 countries including Australia, Belgium, Canada, France, Germany, India, Indonesia, Israel, Italy, Japan, Malaysia, Mauritius, the Netherlands, New Zealand, People’s Republic of China, Philippines, Thailand, Switzerland and the United Kingdom.
  • Two-Phase Implementation of Companies (Amendment) Act 2014.
  • Trading restrictions: if duly licensed by the Singaporean authorities, a company may conduct the business of banking, insurance, reinsurance, fund administration and etc.
  • “Small Company” Concept for Audit Exemption.
  • To reduce the regulatory burden on small companies and move further towards a risk-based approach, a new small company concept will be introduced for exemption from statutory audit.
  • The audit exemption applies to a company with respect to financial statements for a financial year.
  • Requirement for auditors of public interest companies and their subsidiaries to obtain ACRA’s consent for premature resignation.

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