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Neat, Revolut or Transferwise for HK Company?

zeytin

New member
Neat declined my standard affiliate business with a Hong Kong company. Took weeks for the due diligence to be done. To me it seem they like to talk in big words about reinventing banking but in reality they are worse than most banks. Not a business for the future.
What is affiliate business? Is it a company to collect revenue share commissions from amazon/adult/others ?
 

VanguardFortuna

New member
I have setup with Airwallex and it seems relatively straight forward. I am looking at Currenxie as an option for a new Singaporean company, but maybe just open another Airwallex account for it.
 

JustAnotherNomad

Entrepreneur
I have setup with Airwallex and it seems relatively straight forward. I am looking at Currenxie as an option for a new Singaporean company, but maybe just open another Airwallex account for it.
How do the taxes work for the SG company? You find a lot of conflicting information on what income they will consider “foreign-sourced” and thus tax-free, unless remitted follows Singapore...
 

VanguardFortuna

New member
I’m actually looking for information on that now, as I thought the account needed to be elsewhere to avoid SG tax (i.e. Money not remitted to SG was 100% safe), and Airwallex is technically a HK bank I believe. However, I need to work out if they’re considered an SG account if the company is SG based.
 

JustAnotherNomad

Entrepreneur
Please keep us updated. I never found any information on the SG tax authorities’ website that anything except dividends from a foreign branch would qualify as “foreign sourced income”.
 

VanguardFortuna

New member
My understanding is HK won’t tax foreign income remitted to a HK bank but SG might if it does not fit certain criteria. So SG companies can use a foreign bank accountant to separate its foreign income from SG entirely. I’m in the process of getting that information clarified so will report back.

My scenario is selling services to Australian customers, who pay the SG company, which procures the staff to perform those staff in the Philippines through our company there. Basically having a SG company as the face for customer interactions and payments. No business will be done in SG itself.
 

JustAnotherNomad

Entrepreneur
Thanks. I would be really interested to hear your experience.

The way I understood it from the IRAS website was that it’s almost impossible to fulfill the requirements for the exemption, unless substantial tax has already been paid in some other jurisdiction. In other words, it’s very attractive if you want to live in SG because you can reduce you’re taxes substantially, but not really a great option otherwise because you’d likely be paying less if you incorporated somewhere else.
But of course theory and practice can differ greatly and I might also have misinterpreted what’s written on their website.
 

VanguardFortuna

New member
Yes I heard the same, but also heard if the money wasn’t remitted to SG, it was considered foreign exempt income. HK is simpler but there is too much political instability at the moment. I’ll report back when I find out more.
 

VanguardFortuna

New member
Okay, so I got swayed back towards a HK company despite the unrest and minor setup admin costs ($400 AUD difference with Singapore). It just seems a bit easier with the IRD and the extra $2000HKD to assess offshore status is minimal. The lawyer I was speaking with said he couldn't see how my setup would not be classed as offshore and exempt from local taxes, so this will be the way forward for me.
 

GAC Limited

Mentor Group Gold
Neat is absolutely HORRIBLE!! I used them for my company. First, they limit the amount of money you can receive and keep on account monthly. You will have to provide more documents than when applying for a mortgage when you receive and send funds. Real life example, I tried to send funds from my Neat account to another account that I own in another bank. I had to create an invoice and bill my own company. Keep in mind, my company invoiced my company, same name and details, in order to get my funds released 3 days later. Do yourself a favor and run away from Neat as fast as you can!
 

GAC Limited

Mentor Group Gold
Statrys provides one heck of a long account opening process. Very difficult and repetitive. Cancelled our application after 4 weeks of back and forth and multiple zoom calls. Ironically, they said here was never anything wrong it was just there process. Can't imagine what it would be like trying to send or receive a payment.
 
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