Businesses are best undertaken in Singapore due to the city-states’s strong IP regime, transparent government, consistent and attractive pro-business policies.
Ideas are created and concepts are innovated in Singapore, where the entrepreneurial landscape is manned by least-corrupt government officials, well-educated population, progressing middle class, and remarkable international talent.
Consistently captivating investors from across the borders is Singapore’s tax exemptions and incentives apart from its relatively low taxation rates on corporate and personal level. In a brief conversation with one of Rikvin’s business specialists, says that companies earning monthly revenues beyond S$300,001 are taxed on a flat rate of 17%.
On their first three year of assessment following their incorporation year, “they do business without having to worry about taxes for revenues accrued at S$100,000. On their succeeding S$200,000 procured profits, an additional 50% discount is conferred upon them.”
Singapore’s Avoidance of Double Taxation Treaty maintained with fifty countries neighboring and distant, entitles constituents to certain reliefs such as tax exemption, reduced tax rate, tax credit, tax deduction, and tax sparing credit.
Nonetheless, not all newly registered companies revel in tax exemptions. Rikvin unravels more on this.
“Only tax residents can relish tax exemptions.” When asked for the scope of being a tax resident, say quips, “a company in which the operations, control, and authority stem in Singapore and does not have to report to its parent company, should there be.”
A perfect model of a tax resident is a private limited company, either solely existing or a subsidiary of another.
Both private limited companies and subsidiaries are favorable because they can assume financial accountability, without affecting the personal assets of their shareholders and directors. Rikvin explains that authorities recognize these business structures as separate legal entities, thereby, according them sense of responsibility for their own actions.
Foreign investors seeking to incorporate a Singapore company or foreign companies aspiring for a subsidiary office must engage the services of a professional firm to carry on with their goals. With an exception of individuals possessing a Singapore Personal Access and labor passes, foreign nationals are not eligible to involve themselves in legal transactions such as company registration.