Singapore Emerging attractive as Tax Havens are "Grey Listed" by Regulations
The organization for Economic Co-operation and development’s (OECD) has "grey listed"
certain jurisdictions that were once deemed as tax havens. They include Monaco and
Liechtenstein. Bankers have orchestrated that with regulations for offshore financial
centers increasing it appears that the number of players in the offshore financial field will
diminish particularly if they seek to function only as a venue to park assets.
At a private Banking summit it was stressed that a greater scrutiny was being imposed
by developing countries on offshore financial centers who operate only as a tax haven
and a place to hide money. Now these jurisdictions are at a risk of loosing their
businesses. The OECD and other regulatory parties will force these "grey listed"
jurisdictions to divulge a lot more information.
In the light of the current situation with these tax havens being "grey listed", Singapore
has merged as an attractive place to do business because of its sound tax policies .The
tax rates are attractive to both local and foreign entrepreneurs alike and it continues to
slide down. Singapore practices territorial and single tier tax system. It’s low tax rates
and impressive infrastructure has proved extremely attractive to global trotting
businessman.
The tax residence of Singapore is dependant on the control and management of its
business. A company is non tax resident if the control and management is exercised
from Singapore and non resident if the control is vested with an overseas parent
company.
Though the basis of taxation is similar in both the categories a resident company enjoys:
• Benefits conferred under the Avoidance of Double Taxation Agreements (DTA) that
Singapore has concluded with treaty countries.
• Tax exemption on foreign-sourced dividends, foreign branch profits, and foreign-
sourced service income under section 13(8) of the Income Tax Act.
• Tax exemption scheme for new start-up companies
A non resident company though not open to Singapore tax benefits stated above is not
liable to be taxed for income tax received out of Singapore. With its single tier tax
system profits earned by the Singapore business are taxed only once. Further there are
no taxes on dividends received in a Singapore Company and no capital gains tax. On the
whole Singapore offers a world class infrastructure excellent business opportunities and
an attractive tax system.
AsiaBiz provides complete range of corporate services under one roof for Singapore
company formation, foreign company registration, statutory administration, accounting,
tax filing, immigration and related corporate services to business individuals and
corporation worldwide.
Singapore Company Incorporation
www.asiabizservices.com
Tags: singapore tax, tax havens, taxation, agreement, tax, exemption, resident, company, residence, rates,
monaco