Singapore company and Foreign Income tax confusion ?

[troubled soul]

If I own 100% Singapore company...does not conduct business in Singapore...do not open bank account in Singapore..
All my Digital Business done international with using non Singapore bank .....
Do I have to pay corporate tax ? As I do not remit any money in Singapore and do not conduct any business in Singapore ..
Very confusing information online available..
Can anybody simplify this ?

Thanks

 

[Marzio]

Do I have to pay corporate tax ?

Not in SG but in the place where the business is conducted because the Singapore company will become tax resident in that place. It's not different than operating a US LLC from UAE.

 

[uranium]

@troubled soul plz update if Singapore worked for you. It seems that if you do not conduct business in Singapore + fo not have a local bank account, you do not have to pay taxes. You only need auditing.

 

[troubled soul]

@troubled soul plz update if Singapore worked for you. It seems that if you do not conduct business in Singapore + fo not have a local bank account, you do not have to pay taxes. You only need auditing.

Actually It is not tax free......Only in Singapore If you pay tax is other country.....Tax is inevitable from 2023 it seems for serious business...

 

[uranium]

Actually It is not tax free......Only in Singapore If you pay tax is other country.....Tax is inevitable from 2023 it seems for serious business...

If I live in tax free country, do I pay taxes for my company in Singapore?

 

[troubled soul]

If I live in tax free country, do I pay taxes for my company in Singapore?

Yes...It is not pass though entity like USA LLC

 

[uranium]

Yes...It is not pass though entity like USA LLC

But i heard that as long you don't have customers from Singapore and don't have a local bank account, you don't pay taxes

 

[troubled soul]

But i heard that as long you don't have customers from Singapore and don't have a local bank account, you don't pay taxes

confusing online material.....I am also not sure

Singapore - Corporate - Taxes on corporate income

Detailed description of taxes on corporate income in Singapore

taxsummaries.pwc.com

Companies (resident and non-resident) that carry on a business in Singapore are taxed on their Singapore-sourced income when it arises and on foreign-sourced income when it is remitted or deemed remitted to Singapore. Non-residents are subject to WHT on certain types of income (e.g. interest, royalties, technical service fees, rental of movable property) where these are deemed to arise in Singapore (for details, see the Withholding taxes section).

 

[uranium]

confusing online material.....I am also not sure

Singapore - Corporate - Taxes on corporate income

Detailed description of taxes on corporate income in Singapore

taxsummaries.pwc.com

"when it is remitted or deemed remitted to Singapore."
If I have a company in Singapore with emi in Europe, I don't need to pay taxes in Singapore

 

[JustAnotherNomad]

I'm pretty sure that SG companies always need a resident director and always have to pay tax in SG.
However, if there is income from a foreign PE that has been subject to tax in that other country, then such income is only taxed by SG if it is remitted to SG.
At least that's how I have understood it, but I don't have any experience with it.
I also think there is no capital gains tax, so it can make sense to use SG for a holding company.

 

[uranium]

I spoke to accounting firm in Singapore and they clarified the matter
Basically if you run Singapore company from offshore tax free jurisdiction, let's say Monaco.
You still have to pay taxes 17% to Singapore even if you income is from outside.
So if your country of residence doesn't tax you, Singapore will.

 

[troubled soul]

I spoke to accounting firm in Singapore and they clarified the matter
Basically if you run Singapore company from offshore tax free jurisdiction, let's say Monaco.
You still have to pay taxes 17% to Singapore even if you income is from outside.
So if your country of residence doesn't tax you, Singapore will.

thanks for reply...As I said "confusing".....online and offline

 

[Marzio]

if there is income from a foreign PE that has been subject to tax in that other country, then such income is only taxed by SG if it is remitted to SG

If income was already taxed in another country then dividends could be remitted to SG tax free (or this is how I understand Uber is doing).

 

[EliasIT]

But i heard that as long you don't have customers from Singapore and don't have a local bank account, you don't pay taxes

that is true but your forget the reporting to your home country if you don't live in Singapore!

 

[uranium]

that is true but your forget the reporting to your home country if you don't live in Singapore!

I was mistaken
Read my post above:

I spoke to accounting firm in Singapore and they clarified the matter
Basically if you run Singapore company from offshore tax free jurisdiction, let's say Monaco.
You still have to pay taxes 17% to Singapore even if you income is from outside.
So if your country of residence doesn't tax you, Singapore will.

 

[slink]

I spoke to accounting firm in Singapore and they clarified the matter
Basically if you run Singapore company from offshore tax free jurisdiction, let's say Monaco.
You still have to pay taxes 17% to Singapore even if you income is from outside.
So if your country of residence doesn't tax you, Singapore will.

I also heard this from one Singapore accounting firm, but another firm told me that I won't need to pay Singapore corporation taxes if the foreign income is remitted to a bank in a different country. They said I may need to pay taxes in the country where it's remitted and I'm a resident, but if that country is zero tax then I don't need to pay.

I'm here right now for clarity as I'm being told lots of different things by different people - and have no idea what's right!

 

[uranium]

I also heard this from one Singapore accounting firm, but another firm told me that I won't need to pay Singapore corporation taxes if the foreign income is remitted to a bank in a different country. They said I may need to pay taxes in the country where it's remitted and I'm a resident, but if that country is zero tax then I don't need to pay.

I'm here right now for clarity as I'm being told lots of different things by different people - and have no idea what's right!

I don't believe what your firm told you
Basically they are saying; open company in Singapore + bank account in Europe and pay 0% tax
If this was the case, why all other firms didn't tell me this
And it doesn't make sense, you still have to file tax returns in Singapore

 

[slink]

I don't believe what your firm told you
Basically they are saying; open company in Singapore + bank account in Europe and pay 0% tax
If this was the case, why all other firms didn't tell me this
And it doesn't make sense, you still have to file tax returns in Singapore

I agree it doesn't make sense to me and conflicts with what I've been told elsewhere. I'm meeting another firm for a third opinion.

 

[uranium]

I agree it doesn't make sense to me and conflicts with what I've been told elsewhere. I'm meeting another firm for a third opinion.

Please update us

 

[Marzio]

Both you guys have correct info.

The discrimating factor is if you remit money to SG or not.

If you don't remit money to SG your income doesn't need to be taxed offshore.

If you remit money to SG your offshore income needs to be subject to tax elsewhere.