Singapore as an Offshore Company Tax Haven

Singapore is becoming increasingly important as one of the worlds low tax havens and is keen to attract Westerners. It's a good choice for offshore company formation if you're looking to dispose of assets because there is no capital gains tax. In addition Singapore does not levy a withholding tax on dividends. Interest and royalties paid to non-residents are, however, subject to a 10% or 15% withholding tax.

Singapore Offshore Companies and their Tax Liability

Singapore is not completely tax free, but like Panama and Costa Rica it applies the territorial basis of taxation. Therefore even if you become a tax resident of Singapore you can avoid paying income tax on your overseas pension or investment income. Over the past year or so the city state has also benefited from the introduction of the European Savings Tax Directive. As Singapore is outside the scope of the directive it has seen a sudden rush of cash into its banks by EU residents, keen to keep their money away from the prying eyes of governments.

In terms of company tax, the tax residence status of a company in Singapore depends on the usual test of where the management control of the business is exercised. If you use a Singapore resident company it will be taxed on any income accruing in Singapore or that is received in Singapore from overseas. There is a special rule for overseas dividends which mainly affects Singapore holding companies. This states that there is a tax exemption for the overseas dividends, provided they are not remitted into Singapore. The highest corporate tax rate of the country from where the income is received is at least 15%. The income has already been taxed in the overseas country. Singapore companies also enjoy some very attractive tax breaks. The current corporation tax rate is 17%.

Double Taxation Agreements

Singapore has an extensive investment protection agreement and double tax treaty network. This includes most countries in the Asia-Pacific Region and countries in Europe, Africa and the Middle East. These countries include China, Indonesia, Thailand, Malaysia, Philippines, Vietnam, India, Japan, Korea, Australia, New Zealand, South Africa, United Kingdom, Netherlands, Germany, Switzerland, Sweden, France, Belgium, Finland and the United Arab Emirates.

Singapore is also one of the very few countries to have a tax treaty with Taiwan. This explains the popularity of Singapore holding companies for Taiwanese investments into China and the region.

Singapore Offshore Company Formation / Registration

Offshore Trade Services are able to incorporate a Singapore offshore company. Company formation normally takes up to 5 days to register a new company.

Singapore Offshore Company Shares

The concept of authorised share capital was abolished in Jan 2006 and the minimum number of issued shares is 1. Ordinary shares, preference shares and redeemable preference shares are all permitted.

Our Services - Offshore Company Formation, Nominee Director, Nominee Shareholder, Mail forwarding and Bank Accounts

Offshore Trade Services specialize in Singapore company formations ranging from simple company registrations to complex structures including offshore Trusts and in providing a very comprehensive assortment of administrative services to Singapore companies, including the provision of Nominee Director, Nominee Shareholder, Mail Forwarding and Bank Account services. We are also able to offer a 'transfer in' service whereby we can take over the management of your existing Singapore Offshore Company, often for no cost at all.

Please read also about our Due Diligence Requirements.