Singapore company questions

[zeytin]

Hi,

I've decided to incorporate in Singapore and benefit from EPC (Exempt Private Company). My source of income is from a company in the USA, and I have two independent contractors overseas as my expenses.

While the Secretary service provider answers my questions in detail, IRAS.gov.sg is confusing me.
1. Does anybody knows if my independent contractors (not employees, but they'll get paid every month) needs to pay withholding or income tax in Singapore (they don't live in Singapore)
2. Singapore EPC companies are exempt from annual audit if turnover or total assets are less than SGD 10M, anybody has experience with this?
3. The tax rate for the first 100K SGD = 4.25%, 100K-300K SGD is 8.25%, and over 300K is 17%, and it looks too good to be true.
4. Does Singapore banks open accounts to Singapore companies whose UBO is a foreigner (and the company incorporated with a nominee director as you can guess) easier?

PS: Singapore ain't cheap but HK is not an option for me and my location is in the SEA region and I prefer somewhere close to me (Not cyprus)

 

[zeytin]

Edit:
3. is for first 3 years only if you're eligible. Which is still cool I guess, especially if you don't make much money.

 

[bnpsu]

3. The tax rate for the first 100K SGD = 4.25%, 100K-300K SGD is 8.25%, and over 300K is 17%, and it looks too good to be true.

Why does this look too good to be true?

 

[zeytin]

3. The tax rate for the first 100K SGD = 4.25%, 100K-300K SGD is 8.25%, and over 300K is 17%, and it looks too good to be true.

Why does this look too good to be true?

Because there is always a chance that I may not be eligible for it? Imagine you plan to pay low taxes and then hit with 17% flat taxes because somehow your secretary or accountant did something wrong or didn't explain you everything etc.

 

[bnpsu]

Because there is always a chance that I may not be eligible for it? Imagine you plan to pay low taxes and then hit with 17% flat taxes because somehow your secretary or accountant did something wrong or didn't explain you everything etc.

I see.. from what I heard, if the funds hit your Singapore bank account, it's taxable.. even if foreign sourced

 

[zeytin]

I see.. from what I heard, if the funds hit your Singapore bank account, it's taxable.. even if foreign sourced

It's true. That's why I need to make sure this 3 year new startup exemption will work for me. Director's renumeration is also taxed, so does Director's salary (withholding tax).

 

[zeytin]

Also, does anyone know if American banks will open a corporate account for a Singapore company? If so, will they cut 30% as withholding tax for US based income?