Uses of a Singapore Offshore Company
International Tax Planning Vehicle
Crypto related activites
Investment Vehicle | Holding Company
Why form an offshore company in Singapore?
A Singapore Offshore Company is a multitool when it comes to international tax planning. A Singapore Company can be used as a tax exempt entity by being classified as a non tax resident, be classified as a tax resident company with access to Singapore Tax Treaty Network, can also benefit from an exemption on foreign earned income for tax resident companies that do not remit their foreign sourced income to Singapore, it can be used as a tax resident company with tax exemptions, as a holding company, and among other tax strategies.
Companies in Singapore do not only offer from tax benefits, they also offer a business friendly legislation, being a popular jurisdiction for family offices, crypto related businesses, payment institutions, and much more.
Singapore Companies are not subject to Economic Substance Requirements.
In adittion, Singapore companies benefit from an excellent international reputation in tax and business, stable banking system, low level of corruption, etc.
Taxation in Singapore
Singapore is the Swiss-army knife when it comes to taxation. Companies formed in Singapore can elect to be a tax resident in Singapore by having its place of control and management and control in Singapore, or can electo to be a non-resident by having its place of control and management in a foreign jurisdiction.
Tax resident companies will not be taxed on their foreign-sourced income as long as they don't remit or receive this foreign-sourced income in Singapore, i.e. receiving foreign-sourced income into a bank account in Singapore.
On the other hand, tax resident companies that remit their local and foreign-sourced income in Singapore will benefit from tax exemptions where an effective tax rate of 2.85% or 3.19% is applied, even though the official corporate tax rate is 17%.
Tax resident companies can access Singapore's tax treaty network, and these companies will not need to have Economic Substance Requirements to be able to be considered a tax-resident, which is a key requirement to be able to profit from these Double Taxation Avoidance Agreements
Those companies formed in Singapore but that are not managed from Singapore, are tax exempt on their foreign sourced income, even if remitted to a Singaporean bank account.
In addition, capital gains is not taxed in Singapore, making it a great option for international tax planning.
Click the button below to read our full tax guide on taxation in Singapore
Singapore Offshore Company Yearly Maintenance Compliance Requirement
Compliance with the Accounting and Corporate Regulatory Authority (ACRA)
Companies formed in Singapore are required to submit an Annual Return to ACRA. This is an information return, not a tax return
Compliance relating to the Inland Revenue Authority of Singapore (IRAS)
Estimated Chargable Income
ECI is an estimate of your company's taxable profits (after deducting tax-allowable expenses) for a Year of Assessment (YA).
Corporate Income Tax Return
Companies in Singapore are required to submit a Corporate Income Tax Return. Depending on the company net income, it will file Form C, Form C-S, or Form C-S Lite.
Our Services in Singapore
Singapore Offshore Company Formation
-
Company Registry.
-
Corporate Documents
-
Company Secretary
-
Nominee Director
Company Management and Compliance
-
Corporate Secretary
-
Annual Return
-
Estimated Chargeable Income
-
Corporate Tax Returns.
-
Bookkeeping
Legal and Tax Counseling
-
Corporate and legal counseling.
-
Counseling Singapore Taxation
-
International Tax Counseling.
Requirements to open a Singapore Offshore Company
Shareholders: 1 shareholder minimum required. The shareholder(s) can be foreigners and/or non residents.
Director: one local director is required (Singaporean Citizen or Permanent Resident). A nominee director is often appointed to comply with this formation requirement. The other directors can be non-resident foreigners.
Corporate Tax Residency: Corporate Tax Residency in Singapore in determined by where the company is controlled and managed. So a company can be incorporated in Singapore but not be a tax resident in Singapore if the control and managed is exercised outside of Singapore
