Singapore The Low Tax or No Tax Haven
It’s common knowledge that Singapore is a low tax jurisdiction, but a tax haven? Ask around and most people will have no clue. Often there’s the misconception that Singapore is just a regular modern and sophisticated place to conduct international business with extremely high taxes too.
So, which is it? The truth is, it really depends on how the rules are followed and the execution of the established rules. Yes, Singapore can indeed become a Tax Haven of choice if you operate your affairs correctly.
Just be prepared that Singapore is an extremely established world financial player similar to Hong Kong in many ways. Expect the services to be costly and the maintenance of those services to cost a bit too. However, you also similarly get very sophisticated servicing of your incorporation too. The country at the same time, operates a very transparent and legally to the letter system. You’ll get the kind of protection against improprieties against you within Singapore laws – i.e. a foreign country can’t bully the Singapore government into divulging your corporate affairs if no proof (suspicion is insufficient) of illegal activities are shown.
Knowing all that, so why do people and businesses incorporate in Singapore from all over the world? The real answer is ASSET PROTECTION.
For Singapore Based Tax Residence Companies
“If you have offshore investments or businesses, it is possible to manage your affairs in a tax-efficient manner with the use of an offshore company. By ensuring that all directors’ meetings are held outside Singapore and with the company registered with the agents in the offshore jurisdictions, the tax on income arising from offshore investments and businesses could be deferred indefinitely, if not avoided altogether.”
This type of tax regulation is known as “territorial taxation”. With the strict rule in place for prevention of money laundering and terrorist financing, opening bank account for other tax haven jurisdictions can be difficult. On the contrary, to open a corporate bank account for companies in Singapore or Hong Kong is easier as these companies are more transparent due to the strict compliance control by the government – to read more – click here.
Since I’ve already made known one such company that offers their services for a Singapore incorporation, her are a few more - if just for your informational purposes. Here’re 7 more.
- Kaizen Corporate Service Limited
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Very nice information. Thanks for this. You really have a very informative site, thank you for sharing!