Singapore options

[treblepebble]

I understand that Singapore is 0% capital gains, which I assumed would make it a crypto tax haven. However, I don't see it mentioned much as an option on here with many opting for Dubai , Portugal.

I wondered if there was a reason for this.

Also, doesnt anyone know where one would start if they were to take Singapore as an option. (Assuming a person has a few million dollars in the bank ready to open an account)

Thanks

 

[BlueMist]

Get in touch Rikvin - they will help. The reason why people opt for Dubai‌ vs Singapore is simplicity. To be a legal resident in Singapore you need company +‍ work permit (Employment Pass). Those are 2 different processes and in Singapore it is a⁠ bit more complicated, also you can't take things (EP) for granted. You need to prove⁤ that you are required for this job to be present in Singapore and have a⁣ good salary band e.g. S$10,000 per month (which will be taxed). The company should also⁢ be operational showing some financial activity / paying tax.

In UAE it is tax free,︀ most don't even pay themselves a salary, they just take a dividend. Since both corporate︁ and personal income is tax free, it doesn't matter how it is paid.

 

[Martin Everson]

@BueMist You nailed it thu&¤#

Just try and become a resident of Singapore without being a‌ serious business person. The only backdoor is to obtain a student visa by picking some‍ random approved course to do.

 

[JackAlabama]

Besides being more expensive and⁢ way more difficult, it is also a much less nice place than Dubai or Portugal.︀

 

[treblepebble]

This would be my⁠ intention, just to reside there, no business or company (unless it helped to form one),⁤ and conduct my overseas personal trading, which I assume would be 0% CGT.

Are you⁣ saying even doing just this is quite difficult?

Thanks

 

[Mercury]

Another option would be to set up a Singapore company to invest/trade cryptos and reside‌ in a territorial tax non CFC neighbouring country (Malaysia, Indonesia, Thailand, Philippines, ...). Singapore company‍ dividends are tax free.
Singapore company set up/maintenance including yearly local nominee director (mandatory) salary⁠ and accounting is still cheaper and undoubtedly more reliable than a UAE company and banking⁤ set up/maintenance.

 

[treblepebble]

Thanks for this. This could be what I'm⁣ looking for. Although I don't really trade frequently and I'm more of a long term⁢ holder. I would be doing a few trades per month though on which the CGT︀ could be in the millions. Also some of the above posters seem to indicate that︁ its very difficult to setup a company for a foreigner?

I wonder though.. If I︂ was to do this, would I be able to donate my existing crypto holdings to︃ this company? or would it require the company to begin afresh from FIAT and invest︄ the funds directly?

Thanks again

 

[backpacker]

At least with regards to the Philippines this does not work. The⁠ Philippines does not have a territorial tax system even though some obscure Internet/Nomad/Whatever advisors say⁤ so. The Philippine tax code simply states that resident aliens and OFW will be taxed⁣ on their Philippine sourced income which means it excludes a certain group of people from⁢ the principle of worldwide taxation.
In practice the taxman works as follows: You work for︀ a company. Company abroad, work performed on Philippine soil. Since you are the owner of︁ that company (not publicly traded or listed on any exchange) the entity is considered to︂ be "with you" since it can not act without you.
So, in the case of︃ @treblepebble /Philippines a "company" is counterproductive. Specifically since -according to his post #7- the number︄ of trades is relatively low.

 

[Mercury]

According to KPMG: "No CFC regime exists in the Philippines."

The nominee director is supposed‌ to manage the Singapore company. As the owner/shareholder, one will receive dividends (that will not‍ necessarily be remitted in the Phillippines) not salaries.

Obviously, the SG company owner/Phillippines resident who⁠ performs the few trades per year is technically working in the Phillippines .... however I⁤ can't figure out how the local IRS will know and prove it, especially using VPN.⁣

 

[treblepebble]

Assuming I wanted to set something like this up, some form of setup in Singapore‌ with a company doing the sells of my holdings over time, but residing in a‍ country like Thailand, who would be the best people to contact?

Thanks again

 

[bibing]

May I ask why you‍ state Singapore is much less nice place than Dubai? (genuinely curious, I have visited SG⁠ as a tourist but never lived there)
I thought a UAE company⁢ would be cheaper?

 

[Martin Everson]

It would be impossible without deep pockets. Just check out the residency options in Singapore‍ to see what I mean.

 

[Silvio]

What you're saying is⁠ that you can come to Singapore to "study", maybe take some courses in feminist dance⁤ therapy, open bank accounts, and then leave? Will they close your accounts after you leave?⁣
We need some people from the forum and try and let us know how it⁢ went 🙂

 

[JackAlabama]

Singapore was very good and⁤ easy like 7 years ago. But they become somewhat unreasonably picky and quickly priced one⁣ out.
I do not know these days how it is in practice.

 

[backpacker]

If and how BIR (Bureau of Internal Revenue) figures something⁢ out can not and should not be the base of any decision. When I write︀ something I look at legal procedures, local laws and the relevant tax code.
I do︁ not understand why you insist on your advice when it causes more harm than good︂ .... ca#"! !

On a more general note:
KPMG/PwC/Deloitte/EY and the like are mostly correct when︃ it comes to the core issue of a sentence. However, they rarely do take into︄ account the wider picture when it comes to those free-of-charge info sheets. After enjoying the︅ free-of-charge info it is up to the potential client to either hire a professional advisor︆ or to do his own research.
Look through this forum, enter "Georgia" or︇ "Portugal" and you see the result when relying on freely available "internet information".︈
Example: There are many countries who do not have a capital gains tax. More often︉ than not, capital gains are then taxed as regular income. Still, info sheets write that︊ there is no capital gains tax which is technically correct but does not help much.︋
Same is valid for CFC. Just because there is no CFC regime does not mean︌ that the country in question does not tax you on work performed in the country,︍ even if you try to hide behind an obscure "company"!

 

[treblepebble]

Ok thanks.

Out of‍ curiosity how much would I need. I have probably $2-3M I'd be prepared to move⁠ there but I am guessing they are interested in much more

 

[Mercury]

I don't give any advice, just share my personal thoughts on how things⁤ are managed in most of the countries in the south-east Asia region where I stay⁣ since several years.

There could be a (sometimes huge) gap between what you read and⁢ the real life.

From what I've seen, ever changing laws and rules exist but enforcement︀ is strongly lacking. Corruption is heavily rampant and any issue, if caught (meaning reported), can︁ easily be solved with a brown envelope for a tiny % of the fine. Wealthy︂ locals and smart foreigners are aware of that and use and abuse it.

Coming from︃ the western world, I've run businesses here and there always sticking with the law and︄ rules. The outcome is that I've paid the high price for no help/allowance when in︅ need (Covid situation for instance). Needless to say that, despite complying, some locals/officials will keep︆ trying to scam you at every corner.

As the old proverb truly says: "When in︇ Rome, do as the Romans do". But again, to each his own.

 

[JackAlabama]

That could work, but you would need a somewhat stronger⁠ case for a business, like some AI development project or something along the line.
But you need to pay yourself a not too low salary, pay the 17% tax on⁤ it and also pay the high local cost of living.

Im a bit dated on⁣ Singapore, as I left it years ago.

 

[backpacker]

You don't get the point ...

At least with regards to a resident alien in︆ the Philippines your suggestion of hiding something behind an obscure "company" is counterproductive: You pay︇ for something which you do not need (i.e. "company" set up) and in addition you︈ may face a tax bill for something that is otherwise tax-free!

Even the Romans (in︉ the Philippines) would not do that!

 

[Mercury]

Where did I suggest⁣ to hide something behind an obscure company??

Of course @treblepebble may not need a company⁢ to cash out his cryptos but he's the one who asks about the benefits of︀ incorporating a SG company for such a purpose. Then raised the point of the residency.︁
As residence in SG can be difficult to obtain, I just add that an option︂ could be to reside in a territorial tax country to receive the dividends tax free︃ from the SG company.

Your turn, what is your point in this thread? Can you︄ answer the OP question? ... or just elaborate on what the Romans would do in︅ his shoes as it seems you know them well smi(&%