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Offshore Taxation in Singapore

When it comes to company incorporation, one of the significant thoughts that turns out to be a big concern for business investors is the concept of tax. Yes, you heard it right! There are numerous destinations like Dubai, where the personal tax doesn’t get levied but hold the idea of corporate tax. On the other hand, there are nations like India, where a business owner or investor needs to pay both income and corporate tax, which turns out to be a compulsion.

On the flip side, there are tax-haven like Singapore that provides tax-exemption benefits to business owners and investors with the flexibility to set up their offshore company. In this guide, we will have a look at the offshore taxation scenario in Singapore, which will turn out to be beneficial for you. If you are looking forward to investing in Singapore offshore, then do read till the end!

Singapore: A Growing Tax-Haven Jurisdiction

One of the fastest-growing and modern world economies, Singapore is tagged as a profitable offshore business destination. It is a gateway to Asia’s banking and investment markets and holds numerous Free Trade Agreements (FTAs) and Double Taxation Treaties (DTTs), and is one of the competitive open markets globally.

Singapore’s legal tax system is based on English Common Law and holds numerous tax-incentives that grabs the attention of foreign investors. Certain benefits that make the tax-haven jurisdiction a remarkable place involves the following considerations:

  • Tax incentives for SMEs
  • Tax-free on all foreign capital held
  • Favourable immigration policies
  • Premier finance and banking services
  • One of the most competitive markets (based on tax concerns)

The points, as mentioned above, turn out to be a boon when it comes to offshore company incorporation in Singapore.

How to Set Up an Offshore Company in Singapore?

Business owners who look forward to starting an offshore business in Singapore can proceed with two options:

  • Setting up a new offshore company
  • Purchasing an offshore shelf company

The former option is preferred by business owners who are newbies in the market and look forward to incorporation by following the legal formalities at ease. On the other hand, the latter option is usually followed by experienced offshore players who wants to deal with primary business operations.

Also, establishing an offshore company in Singapore needs to be backed by a solid banking process that needs to be completed to carry out the financial transactions. Offshore banking has got numerous benefits and if you want to know more about it, have a look at our latest guide on the Advantages of Offshore Banking, which will give you a complete scenario about the benefits that you can derive.

A shelf company is usually an established legal entity that needs to be purchased by the business owners. The business operations can be carried out in a speedy manner because one doesn’t have to go through the company set up process, and turns out to be a time-saver. To know more about offshore company incorporation in Singapore, have a look at our latest guide, How to Register Offshore Company in Singapore.

Dealing with the taxation process turns out to be an issue if one is not aware of the documentation process. Most of the business owners prefer to proceed ahead with business experts who are well-versed with the process.

Since it turns out to be time and cost effective, it is preferrable to proceed with the advice of legal experts. To know more, have a look at the Core Reasons for Hiring an Offshore Business Consultant, who will help you to understand the benefits that you can avail.

If you are looking forward to offshore taxation in Singapore, feel free to have a have a word with our business advisors. Contact us today-we’d be glad to assist!