If you are a business person involved in different business activities in Singapore, you can become a resident of the jurisdiction? The answer is yes! You can do this by obtaining a Certificate of Residence in Singapore.
A Certificate of Residence is an official paper that the Inland Revenue Authority of Singapore (IRAS) issues as proof of Singapore tax residency. The certificate is commonly presented as proof of tax residence when claiming tax treaties to avoid double taxation, among others. The certificate of residence is issued after establishing that the individual or the company meets the tax law definition of a resident. In this blog, we will talk about different criteria that you need to keep in mind, along with the steps that you need to follow to obtain the certificate.
Who can get a Certificate of Residence in Singapore?
The Singapore residency certificate requirements vary according to the entity applying for the certificate. Although both companies and individuals alike can avail themselves of it, there are certain aspects that they need to meet. These specifically being:
- Individuals: Tax residents in Singapore are people who have stayed in Singapore for at least 183 days within a calendar year.
- Companies: Any company incorporated in Singapore that fulfils the tax residency requirements.
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Certificate of Residence Process in Singapore
The following are the Singapore residency certificate application steps:
Singapore Residency Verification
The first step is to undergo the Singapore residency verification. For individuals, generally, foreign workers who have worked in Singapore for at least 183 days in the previous year are eligible. On the other hand, companies need to meet requirements like having control and management exercised in Singapore, which means the central management and control of the company in Singapore. The location of the board of directors' meetings determines the control of power. The company should not be owned or controlled by another non-resident entity.
How to Apply
You can submit the IRAS certificate of residence application form online through the official website using a SingPass account for individuals or a CorpPass for companies. It can take anywhere between 2 and 3 weeks for the application to be processed. If further information is needed, the processing time will take longer. Once you have completed your Singapore certificate of residence application, you can download it from the IRAS website or get it in person at the nearest IRAS centre.
Required Documents
The following documents need to be submitted to the IRAS website to process the certificate of residence in Singapore:
For an Individual
- Passport copies of the individual
- Employment contract details
- Proof of residential address
- Other relevant documents may be required depending on the circumstances
For a Company
- Passport copies of the directors
- Employment contract details
- Proof of residential addresses of the directors
- Financial statements
- Tax returns
- Information on the company’s operations and management structure
Receive your Certificate of Residence
Once all your documents are approved, you will receive your tax residency confirmation in Singapore. Your certificate of domicile in Singapore is valid for up to 5 years, after which you will have to apply for a renewal, which can be done by following the Singapore residency certificate application steps which you did the first time.
IRAS Guidelines for Certificate of Residence in Singapore
The Inland Revenue Authority of Singapore (IRAS) has issued specific guidelines for obtaining a tax residency certificate in Singapore. This certificate is an official confirmation that a company or individual holds the Singapore tax residency status. It is mainly used to claim Singapore tax treaties or get the benefits of international tax purposes. The following are the specific guidelines issued by the IRA:
- The entity applying for the Singapore residency for tax purposes should be eligible.
- This new law will take effect in 2025. Under it, companies must have at least one key employee based in Singapore or demonstrate that they are managed by a related company based in Singapore.
- Companies that deal in foreign income are mandated to have a tax residency certificate in Singapore.
- The entity applying for the tax exemption Singapore residency certificate must provide accurate and up-to-date information.
- Once the certificate of residence in Singapore expires, it must be renewed to maintain the tax residency status.
Benefits of Successfully Completing the Certificate of Residence Process
Some of the benefits of obtaining the Singapore tax residency status are:
- Avoidance of double taxation
- Reduced withholding taxes
- Tax residency recognition internationally
- Enhanced credibility
- Proof of compliance with tax obligations
- Simplifies the process of tax filing
By now, you are well aware of why you should get a certificate of residence in Singapore and the process you need to follow to get the certificate. But the bigger question is how can you navigate the complexities of the process. Even though the procedure looks straightforward, it hides multiple twists and turns. Failing to provide any information as per the guidelines can hinder the entire process. And that is why it is recommended to seek the help of a professional who can help you glide through the process.
Why BSW?
At Business Setup Worldwide, we hold more than 8 years of experience in helping business people grow their businesses. Our team of experts are well versed in the legalities of the system and can help reduce your time and effort. Our experts will help you through the process of obtaining the certificate of residence in Singapore, prepare the documents, and keep you updated on the status of your application. Contact us today to get your tax exemption Singapore residency certificate.
