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Singapore company structure for offshore taxation

#61
aidenaiden said:
I plan to open Singapore company for offshore taxation purposes with following sturcture:
Owners (two foreigners, non-US citizens, not living is Singapore)
Director (local resident as a service)

Company will have 100% operation/revenue outside of Singapore, including revenue from US customers.

Is this company considered a tax resident of Singapore? or a tax resident of director who owns most shares?
Will profit withdrawal will be taxable for this company structure?
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It’s a shame you haven’t been online since last year, but maybe you’ll get an email or something and come across this thread again.

I’d really love to know how you went about setting up your company in Singapore, if that’s what you ended up doing.
 
#62
As a tax resident company you can have both remitted and unremitted foreign sourced income. You need to keep a separate book to record the history and documentary proof all your foreign sourced income. For unremitted foreign sourced income, it won't be tax until remitted. For remitted income, if your company does not have a tax residency cert, it could be double taxed.
 
#63
Оne of the tax consultants said:
Singapore operates on a territorial tax system, which means that only income that is sourced in Singapore or received in Singapore from outside is subject to tax. Therefore, if your company’s income is entirely earned overseas and not remitted to Singapore, such income would typically not be taxable in Singapore.

However, it is important to note that if the company is set up solely to take advantage of Singapore’s tax regime without conducting substantive business operations, IRAS may scrutinize the arrangement and potentially disregard the tax benefits. This is especially relevant if the company lacks economic substance within the country.

To benefit from Singapore tax residency, the control and management of the company should be exercised from Singapore. This means that key strategic decisions should be made in Singapore, ideally through local directors, board meetings held in Singapore, and some operational presence.
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Is this correct? Because I don't know how else the IRAS decision can be made if I don't have an office/clients/bank/revenue in Singapore. Does anyone have real experience with a non-resident SG company and taxation/communication with IRAS? Of course, I incorporated the company to get SG benefits and don't have substance there.
 
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