Singapore company and Foreign Income tax confusion ?

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troubled soul

troubled soul

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Aug 23, 2020
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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
 
azb1 said:
azb1 said:
Do I have to pay corporate tax ?
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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.
 
@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.
 
uranium said:
uranium said:
@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.
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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 said:
uranium said:
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
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confusing online material.....I am also not sure
https://taxsummaries.pwc.com/singapore/corporate/taxes-on-corporate-income

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).
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Last edited: Aug 11, 2023
 
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.
 
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.
 
uranium said:
uranium said:
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.
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thanks for reply...As I said "confusing".....online and offline
 
JustAnotherNomad said:
JustAnotherNomad said:
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
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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).
 
uranium said:
uranium said:
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
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that is true but your forget the reporting to your home country if you don't live in Singapore!

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EliasIT said:
EliasIT said:
that is true but your forget the reporting to your home country if you don't live in Singapore!
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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.
 
uranium said:
uranium said:
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.
Click to expand...
Click to expand...
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!
 
slink said:
slink said:
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!
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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
 
uranium said:
uranium said:
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
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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.
 
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.
 
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