Singapore is one of the destination country for tax haven. This presentation will give you insights why Singapore is widely chosen.

1. Singapore:
An Increasingly Attractive
Offshore Tax Haven
Presented By:
Savi Arora
PGDM 2013-2015

2. Singapore
Jurisdiction Status – Independent Sovereign State
Population –
Official Language(s) – Mandarin; English; Malay; Tamil
Legal System – Anglo Saxon

3. Geograpgy

4. Singapore
Singapore’s aim is to become a major financial hub in the Asia-Pacific
region, and judging by its recent performance in the wake of the global
recession it appears to be achieving this goal.
Singapore achieved economic growth of 14.5% for 2010
Excellent telecommunications and good transport links
The Port of Singapore

5. Singapore
Singapore ranked fifth on 2013 Financial Secrecy Index.
Singapore is arguably the world’s fastest-growing centre for private
wealth management.
A WeathInsight report in April 2013 expects it to overtake Switzerland
by 2020 as the world’s largest offshore wealth centre.

6. Percent of Fortune 500 Companies with 2013
Subsidiaries in Twenty Top Tax Havens

7. Offshore Legal and Tax Regimes

8. Forms Of Operation
Foreign business entities can use the following forms:
 Limited liability company
 Branch, subsidiary or representative office
 Partnership (whether general, limited or limited liability)
 Holding company
 Bank
 Investment fund
 Offshore insurance company
 Shipping company

9. Tax Treatment Of Operations Of
Foreign Business Entities
Domestic Corporate Taxation for the general principles of Singapore corporate
taxation, which also generally apply to foreign business entities.
Note that branches located in Singapore do not qualify for tax and other incentives
available to Singapore businesses.
International and regional headquarters located in Singapore can benefit from
reduced corporate income tax rates of 10% and 15% respectively, compared to the
standard tax rate of 17% .
Qualifying foreign investment funds that are managed by a Singapore-based fund
manager are tax exempt on gains, dividends, profits and interest from designated
investments such as stocks, shares and bonds.

10. Exchange Control
There are no foreign exchange controls in Singapore. Payments, capital
transfers and remittances can be made in any currency and to any
country without prior approval.

11. Trust Law
Law of Offshore

12. Trust Law
Trust law in Singapore is governed by the Trust Companies Act of 2005,
which was revised in 2006.
Singapore reformed its trust laws in 2004, and since then has increased the
number of trust licences issued from around 15 (before the reform) to 40 (as
of March 2010).
The Singapore Trustees Association represents trust companies in Singapore,
also promotes Singapore as a location for trustee services and trust
administration abroad.

13. Banking Law
Law of Offshore

14. Banking Law
Banking secrecy is key to Singapore’s success as a financial centre.
Tax Information Exchange Agreements (TIEAs)
Information regarding a customer’s bank account can only be disclosed
under a court order.
Any disclosure that fails to meet Singapore’s banking secrecy rules can
result in a SGD78,000 fine or three years’ imprisonment.

15. Banking Law
A foreign offshore bank must maintain eligible assets of not less than SGD5m
in Singapore at all times.
Foreign wholesale banks operating in Singapore are required at all times to
maintain in Singapore the higher of an asset maintenance ratio of not less
than 0.15 or eligible assets of SGD5m.
Banking law in Singapore has also allowed for the fast development of
Islamic finance in the jurisdiction
Singapore has set up a financial intelligence unit to combat money
laundering and the financing of terrorism.

16. Domestic Corporate Taxation

17. Scope Of Corporation Tax
A company is resident in Singapore if its central management and control of
the business is exercised there.
Singapore-resident companies are generally taxed on their worldwide
income;
Non-resident companies are taxed on their Singapore-source income only,
which can prove attractive to international holding and trading companies.
Non-resident companies do not benefit from double tax treaties signed by
the Singapore government.

18. Corporation Tax Rates
The corporate income tax rate is 17% (decreased from 18% prior to
2010).
There is a partial tax exemption on normal chargeable income of up to
SGD300,000, as follows:
75% on the first SGD 10,000 of income; then
50% on the next SGD 290,000,
which gives a total exemption of SGD 152,500.

19. Corporation Tax Rates
New start-up companies benefit from full tax exemption on the first
SGD 100,000 of normal chargeable income for the first three
consecutive years of assessment,
plus a further 50% exemption (from tax year 2008) on the next SGD
200,000 of normal chargeable income.
Therefore, a new start-up company can qualify for a total exemption of
up to SGD 200,000 in each of the first three years of business

20. Corporation Tax Rates
International and regional headquarters can benefit from reduced
corporate income tax rates of 10% and 15% respectively.
There are also reduced corporate income tax rates and exemptions
available to companies involved in shipping and maritime activities.

21. Branch Or Subsidiary
A Subsidiary must be registered as a private company limited by shares, with
the parent company as the majority or sole shareholder.
This means the Subsidiary operates as a legal entity in its own right.
Subsidiary can benefit from the same tax exemptions and incentives as exist
for other local businesses.
Branch, on the other hand, the parent is liable for the debts and obligations
of the Branch, and the Branch cannot qualify for local tax exemptions and
incentives.

22. Tax rate
Nature of income
15%
•Interest, commission, fee or other payment in connection with any loan or indebtedness;
•Rent or other payments for use of movable properties
•Proceeds from sale of any real property by a non-resident property trader
10%
•Royalty or other lump sum payments for use of movable properties
•Payment for use of or right to use scientific, technical, industrial or commercial knowledge or
information
•Distribution made by REIT to unitholder who is a non-resident other than an individual
17% (standard corporate
income tax rate)
•Technical assistance and service fees
•Management fees
0% - 3%
•Time charter and voyage charter fees
•Bareboat charter fees
Withholding Tax
In the case of payments to non-residents or non-resident companies, tax
must generally be withheld as follows:
Withholding taxes may be reduced or eliminated where a double tax treaty is
in place.

23. Goods And Services Tax
Companies must register for goods and services tax (GST) if their turnover for
the previous 12 months exceeds SGD 1m.
Voluntary registration is permitted.
The standard rate of GST is 7%, and applies to most sales of goods and
services made in Singapore.
Exports and related international services are zero-rated. Financial services
and the sale or lease of residential properties are exempt from GST.

24. Personal Taxation

25. Residence And Liability For
Taxation
A person is tax resident in Singapore if he or she spends at least 183
days in a year or straddling two years in Singapore.
A foreign person who has become a Singapore Permanent Resident and
has established his or her home in Singapore is resident for tax
purposes.
All individuals pay tax on income earned or received in Singapore.

26. Personal Income Tax Rates
The income tax rate for non-
residents’ employment income is
either 15% or the relevant resident
tax rate, whichever produces the
highest sum.
Director's fees, consultation fees
and most other income are taxed
at 20%, which is generally withheld
at source.
Chargeable income Rate (%) Gross tax payable
(SGD)
First SGD20,000
Next SGD10,000
0
2
0
200
First SGD30,000
Next SGD10,000
3.5
200
350
First SGD40,000
Next SGD40,000 7
550
2,800
First SGD80,000
Next SGD40,000
Next SGD40,000
11.5
15
3,350
4,600
6,000
First SGD160,000
Next SGD40,000
Next SGD120,000
17
18
13,950
6,800
21,600
First SGD320,000
Next SGD320,000 20
42,350

27. Capital Gains Tax
Generally, capital gains realised from the sale of property in Singapore,
or derived from buying and selling shares or other financial
instruments, are not subject to tax.
If, however, such sale of property or buying and selling of shares and
other financial instruments are regarded as a trade, the gain may be
regarded as taxable income.

28. Estate Duty And Estate/Trust
Income
There is no estate duty in Singapore.
However, assets that continue to produce income during the period
one day after death until the end of the administration period are
deemed to be either estate or trust income;
such income is therefore subject to income tax until the assets are sold
or transferred.

29. Stamp Duty
Stamp duty is payable on certain executed documents relating to properties
and shares, or interest in properties and shares.
Such documents include a lease, sale, purchase, gift or mortgage of property.
Liability arises once the document is executed, even if the transaction itself
has been aborted.
The amount of duty payable varies according to the transaction.
For example, in the case of a mortgage, the duty is SGD4 for every SGD1,000
or part thereof, subject to a maximum duty payable of SGD500.

30. Real Estate Taxes
Property tax is charged on immovable property,
including a house, building and land.
Until December 31, 2010, the amount of tax due
was calculated based on a percentage (tax rate) of
the annual value of a property. The tax rate was
10%, or 4% where the property was granted an
owner-occupier concession.
From January 1, 2011, the 4% tax rate was
replaced by a three-tier tax rate based on the
annual value, as follows:
Annual value
Tax rate
First SGD6,000 0%
Next SGD59,000 4%
Above SGD65,000 6%

31. Double Tax Treaties

32. Introduction
A double tax treaty allows that tax paid can be offset in one of two
countries against tax payable in the other, thus avoiding double
taxation.
Singapore is a signatory to double tax treaties with many countries
throughout the world.
Some forms of income are exempt from tax or qualify for reduced
rates. These include royalties, dividends and capital gains.

33. Latest Singapore Treaty Updates
Treaty Update: Singapore – Various 21 January, 2015
Singapore signed DTAs with France and Uruguay on January 16, 2015, and
January 15, 2015, respectively.
Treaty Update: Singapore - United Arab Emirates 04 November, 2014
Singapore signed a protocol amending its DTA with the United Arab Emirates
on October 31, 2014.
Treaty Update: Singapore – Various 17 September, 2014
DTA protocols signed by Singapore with the Czech Republic and Kazakhstan
entered into force on September 12, 2014.

34. Table Of Treaty Rates
Jurisdiction Status Dividends Interest Royalties
Defaults 0% (1) 15% 10%
Albania Effective January 1,
2013
0% 0% when paid to the government or the
central bank 5%
5%
Australia Effective January 1,
1970
0% 10% 10%
Austria Effective January 1,
2003
0% 0% when paid to the government, the central
bank or between banks, or on a loan or credit
financed, guaranteed or insured by an
institution to promote exports 5%
5%
Bahrain Effective January 1,
2006
0% 0% when paid to the government or the
central bank 5%
5%

35. Other International Agreements
Singapore has entered into a number of tax information exchange
agreements, and has met the OECD's "white list" requirements.
The jurisdiction has also entered into international free trade
agreements with Australia, Brunei, Chile, the European Free Trade
Association, India, Japan, Jordan, New Zealand, Peru, South Korea and
the USA.

36. Wealth Management

37. The Wealth Management Industry
Singapore is reputed to have the highest density of millionaires in the
world.
A comparison with Switzerland is particularly apt.
Assets under management in Singapore are thought to total about
US$1 trillion, as against US$3 trillion in Switzerland, but the gap is
closing fast.
Shorex wealth management forum

38. Incorporation Packages
http://www.guidemesingapore.com/