That makes sense, but I don't see that written anywhere on corporate residence in Singapore.
How can a SG company use US PayPal?
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Gibraltar vs BVI
- Thread starter Roo
- Start date
I once sent you the link in the old thread where you were angry at me and refusing to call Sovereign. Maybe this one
IRAS | Taxable & Non-Taxable Income
Determine the taxability of income earned by companies and the existence of trade, as well as the tax treatment of grants/payouts and digital tokens.
Just open it. You need a US bank account. And an ITIN. There is a discussion on this in the other forum.
This is what I got from my service provider regarding offshoare taxation:
If they are right then it's not possible to do this in Singapore.
They are wrong.
Companies Receiving Foreign Income
Companies may enjoy tax exemptions and concessions on foreign income received.
We all checked with the lawyers of Sovereign already. Please call them as well.
I asked for an opinion from Sovereign on the reply I got, I'll let you know what they say as they were very nice and keen to help out.
You may want to read the long conversation I had with xshore
www.offshorecorptalk.com
There I posted even the law to provide a clear answer. Foreign income is tax free if not remitted. Just be sure not to believe that a local guy there can do consulting for a US client as this is not foreign income but local income.
10.—(1) Income tax is, subject to the provisions of this Act, payable at the rate or rates specified hereinafter for each year of assessment upon the income of any person accruing in or derived from Singapore or received in Singapore from outside Singapore in respect of —
(25) To avoid doubt, it is declared that the amounts described in the following paragraphs are income received in Singapore from outside Singapore whether or not the source from which the income is derived has ceased:
(a)any amount from any income derived from outside Singapore which is remitted to, transmitted or brought into, Singapore;
(b)any amount from any income derived from outside Singapore which is applied in or towards satisfaction of any debt incurred in respect of a trade or business carried on in Singapore; and
(c)any amount from any income derived from outside Singapore which is applied to purchase any movable property which is brought into Singapore.
Singapore company structure for offshore taxation
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...
www.offshorecorptalk.com
There I posted even the law to provide a clear answer. Foreign income is tax free if not remitted. Just be sure not to believe that a local guy there can do consulting for a US client as this is not foreign income but local income.
10.—(1) Income tax is, subject to the provisions of this Act, payable at the rate or rates specified hereinafter for each year of assessment upon the income of any person accruing in or derived from Singapore or received in Singapore from outside Singapore in respect of —
(25) To avoid doubt, it is declared that the amounts described in the following paragraphs are income received in Singapore from outside Singapore whether or not the source from which the income is derived has ceased:
(a)any amount from any income derived from outside Singapore which is remitted to, transmitted or brought into, Singapore;
(b)any amount from any income derived from outside Singapore which is applied in or towards satisfaction of any debt incurred in respect of a trade or business carried on in Singapore; and
(c)any amount from any income derived from outside Singapore which is applied to purchase any movable property which is brought into Singapore.
I just read the discussion but I see PE/office/branch outside of Singapore was mentioned so how would that apply in practice without incorporating one more company? Could rather just incorporate US LLC or BVI company (with know disadvantages) which are cheaper to maintain and zero tax I assume.
Sorry for some delay, I was a little bit busy... I see that the debate has evolved significantly – and interestingly, in the meantime.
Honestly, I do not consider myself being extremely knowledgeable re: company incorporation (re: banking I'm better oriented).
But from what I heard and/or witnessed:
1) US LLC in a state with zero state tax (NM, WY, NV, DE ...) is really not a bad option; although it's maybe less powerful as SG company (see debate above), the issues are quite simple and banking is well manageable.
2) Channel Islands are not so frequently used but I consider it as an alternative really worth checking.
3) Inside EU there are also some options that are used, as Estonia, Polish special IT regime or Romania, possibly somehow combined with Cyprus or Malta non-dom. Not zero tax in all cases but there are another pros, like quite easy banking etc.
EDIT:
4) I forgot about Bahrein. I heard that some use it, too.
Generally, I understand your position.
Well, I bet you that it will work until it stops
Seems OK.
Well...
Honestly, I do not consider myself being extremely knowledgeable re: company incorporation (re: banking I'm better oriented).
But from what I heard and/or witnessed:
1) US LLC in a state with zero state tax (NM, WY, NV, DE ...) is really not a bad option; although it's maybe less powerful as SG company (see debate above), the issues are quite simple and banking is well manageable.
2) Channel Islands are not so frequently used but I consider it as an alternative really worth checking.
3) Inside EU there are also some options that are used, as Estonia, Polish special IT regime or Romania, possibly somehow combined with Cyprus or Malta non-dom. Not zero tax in all cases but there are another pros, like quite easy banking etc.
EDIT:
4) I forgot about Bahrein. I heard that some use it, too.
Payoneer in unnecessarilly expensive IMO. Airwallex is OK but for a BVI company, my clear first option would be Statrys.
Well, in some jurisdictions it is not welcome to pay company expenses by a private card (and then reimburse) regularly, it should be just exceptional, they say. Nevertheless I do not know how it is with BVI re:this.
Generally, I understand your position.
Be advised that if you bank in an AEOI/CRS country and your residence is also in an AEOI/CRS country, your taxmen can be aware of your assets in any case. EMIs are mostly not reporting now (regardless of whether it is a company account or a private one) but it will change in the near future, e.g. in EU from 2025 (IIRC) all accounts with average 3 months balance over 10,000 will be reported.
Well, I bet you that it will work until it stops
Last edited:
Yes, that is also one of the use cases of the Singapore company. You register it as a PE in let's say Hong Kong. You still pay tax and all as a local company, but don't have to do audit in Hong Kong. Once you move to Bahrain, you close the PE in Hong Kong and register it in Bahrain. It gives you more freedom as you can keep the company. That's where Singapore comes handy as let's say a German company will challenge on every move and try to get some exit or whatever taxes. In Singapore, there won't be discussions as it is tax free from start.
Yes. If you live in HK, you have to pay tax in HK like local companies at normal rates. You can only chose whether to pay it for Singapore or Hong Kong company. The rates are same, you may save 10,000 HKD on the audit.
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