Overview
of Singapore
Singapore is a major International Financial Centre
and considered as one of the best places in Asia from which to conduct
International Trade and Investment.
At the heart of Singapore’s thriving business
culture is a unique blend of competitive strengths that makes Singapore
the location of choice for global enterprises. The combination of
core competencies, physical location, Western sophistication and
Eastern growth potential confers a host of benefits to businesses.
Taxation
The Singapore taxation system is territorial and
therefore income tax is only levied on net income from Singapore
sourced revenue or on foreign sourced income remitted to Singapore.
The corporate tax rate is currently 22%. There
is no capital gains tax and Singapore does not impose withholding
tax on the payment of dividends, rentals or technical assistance.
It is also important to note that Singapore provides certain exemptions
on foreign income remitted to Singapore. If such income has suffered
taxation of at least 15% in the remitting country.
Singapore has an extensive double taxation treaty
network covering 50 countries but notably not with the United States
of America.
The Non-Resident Company
A Singapore Company is deemed to be resident if
the central management and control is exercised in Singapore. Therefore
if the Directors and Members reside outside Singapore the company
would be deemed to be non-resident for tax purposes thus foreign
sourced income, which is not remitted to Singapore, would not be
chargeable to taxation.
The Limited Liability Partnership
The Limited Liability Partnership is a body corporate
registered under the Limited Liability Partnership Act 2005 and
has a legal personality separate from that of its partners (Members)
and therefore offers limited liability.
The distinct advantage of the Singapore LLP is
that it has the features of a company but it is taxed and operated
as a partnership. Therefore assuming that there is no Singapore
sourced income and the partners reside outside Singapore there would
be no liability to taxation in Singapore.
In conclusion, the Singapore Company, whether resident
or non-resident or the LLP, if structured and managed properly is
an ideal corporate vehicle for International Trade and Investment.
For further information about the benefits of utilising Singapore
please contact a Director or Senior Manager at our Singapore
office or request
a Call Back.
|
