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Singapore company structure for offshore taxation

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It’s a shame you haven’t been online since last year, but maybe you’ll get an⁢ email or something and come across this thread again.

I’d really love to know how︀ you went about setting up your company in Singapore, if that’s what you ended up︁ doing.
 
As a tax resident company you can have both remitted and unremitted foreign sourced income.‌ You need to keep a separate book to record the history and documentary proof all‍ your foreign sourced income. For unremitted foreign sourced income, it won't be tax until remitted.⁠ For remitted income, if your company does not have a tax residency cert, it could⁤ be double taxed.
 
Оne of the tax consultants said:

Is this correct? Because I don't know how else the IRAS decision can be︃ made if I don't have an office/clients/bank/revenue in Singapore. Does anyone have real experience with︄ a non-resident SG company and taxation/communication with IRAS? Of course, I incorporated the company to︅ get SG benefits and don't have substance there.
 
What company did you recommend there, any link? interested in‍ a full blown solution in Singapore but need a reliable service.
 
Let's say you generate $1M from services outside of SG and all that, so it's‌ theoretically exempt. What does the annual tax return say? Do you mention this amount under‍ "exempt" section or something? Has anyone actually done this in practice for 3-5 years and⁠ hasn't been audited?
 
Please check the IRAS page:

With effect from the Year of Assessment (YA) 2024,‌ companies are required to provide the following information in their tax computation:
  • Unremitted foreign income‍ brought forward from prior YAs
  • Foreign income earned in the current financial year
  • Foreign income⁠ received in Singapore during the financial year
  • Foreign income used during the year and not⁤ received in Singapore
  • Unremitted foreign income carried forward
  • Tracking of allowable expenses attributable to the⁣ foreign income if the company is electing for the liberalised treatment of expenses incurred in⁢ Singapore
This reporting requirement will ensure that companies keep track of their foreign income and︀ accurately report their taxes when the foreign income is considered received in Singapore. To make︁ it easier for companies to comply with the reporting requirement, IRAS has developed the standard︂ template below for companies’ reference. While we strongly encourage companies to use this template, companies︃ may continue using their existing templates for tracking foreign income, as long as they include︄ all the required information. Companies may also modify the standard template to include additional information︅ and details.
 
Understood. So as long as you keep the︅ funds in Wise and say IBKR or a brokerage it is not taxable until it︆ hits SG banks?
 
I actually had a SG company back in 2020 but never used the offshore exemption.‍ Wish I tested this before striking it off.
In your opinion what are the cons⁠ of operating a SG company? Compared to HK it should be even lower maintenance fees⁤ (potentially).
 
Singapore has higher costs a you need a resident⁤ director. Hong Kong has mandatory audits for all company sizes and higher government fees each⁣ year. In the end, it is Scott the same.

Singapore has GST as additional nuisance⁢ as it requires quarterly fillings. And in Singapore, the money cannot pay through Singapore.
 
Did you read the whole tread? This⁤ is what Sovereign write about service income:
 
Yes I read the thread. So you would need to prove‍ that you have a foreign PE so it doesn't default back to SG?

Let's make⁠ an example scenario that's common:
1 shareholder (not based in high tax country, nomads around)⁤
1 SG based director provided by CSP (mandatory)
The company does software development provided by⁣ subcontractors
Banks are wise/statrys etc what daniels mentioned so non-SG

Is the company tax resident⁢ of Singapore?
Is the income classified as offshore hence exempt?
Does the company need to︀ prove foreign PE?
 
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