Singapore Singapore



Singapore

For resident corporations Singapore is not particularly tax-friendly- the corporation tax rate is 18%, and it is charged on all income derived from sources in Singapore, together with income from sources outside Singapore if received in Singapore.

In place of VAT and import duty Singapore levies a 7% Goods & Services Tax from which exporting businesses are exempted. There are however a number of beneficial tax regimes available to the international investor, described on other pages.

Singapore is setting out to be a major 'conduit' country for Indian FDI. In April 2006 India responded positively to Singapore's request to broaden the scope of the CECA [Comprehensive Economic Cooperation Agreement] the two countries signed in 2005.

Whether a corporation is resident or non-resident depends on whether central management and control is exercised inside or outside Singapore respectively. Central management and control is deemed to be exercised outside Singapore where a majority of directors reside outside the jurisdiction. Thus a non-resident corporation is one in which a majority of directors reside outside the country.

Until 2002, non-resident corporations enjoyed some significant fiscal advantages over resident corporations, but these are being removed.

(N.B. Non-resident corporations cannot benefit from the provisions of double taxation treaties signed by the Government).


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