Knowledge base

How to set up a Singapore trust

Singapore is gaining more attraction as a trust jurisdiction internationally. A range of factors have contributed to achieving a reputable offshore trust status, including but not limited to the following reasons:


Withholding tax in Singapore: when to file and pay

Any person who withholds tax from interest, royalties, management fees, Directors’ remuneration or other payments paid to a non-resident person must complete and submit the IR37 form to the Comptroller together with the relevant amount of tax withheld.


Withholding tax in Singapore: non-resident Director's salary

Income subject to tax and its tax rate Section 45B (1): Section 45 shall apply in relation to the payment of any remuneration by a company to any non-resident Director of the company. Section 45(B) (2): subject to tax at 20%. For tax purposes, a non-resident Director is: A member of the board of…


Withholding tax in Singapore: management fees and services

Income deemed to be derived from Singapore Under Section 12(7)(c), payment for the management or assistance in the management of any trade, business or profession that are: Borne by a person resident or with permanent establishment in Singapore; OR Which are deductible against any income accruing…


Withholding tax in Singapore: Rental income

Rental Income Subject to Withholding Tax Under Section 12(7) (d), rent or other payments under any agreement or arrangement for the use of any movable property shall be deemed derived from Singapore if they are: Borne by a person, resident or a PE in Singapore; OR Deductible against any income accruing…


Withholding tax in Singapore: Royalties

What is Royalty? Royalty is the consideration for the use of, or the right to use any copyright of literacy (Software), or any artistic or scientific work. It consists of patent, trade mark, design or model, secret formula, information or process which is usually a secret and not commonly available…


Shareholder's continuity test: Singapore

Shareholders’ continuity test The shareholders’ continuity test holds that the same shareholders must hold at least 50% of the company’s total shares as at both the relevant dates. If the test was not fulfilled, the losses would be dismissed permanently unless a waiver to fulfil the test is obtained…


Withholding tax in Singapore: Interest

Definition: Whether a payment is considered "interest" depends on the substance of the transaction. The intrinsic nature of said interest is compensation for not being able to use or the delayed payment of money by another. The interest must be charged against a primary sum of money which must be owed…


Royalties in Singapore

The Income Tax Act does not give a definition for royalties. However, royalties can be defined as a payment for the right to use a patent, copyright and other intellectual property. E.g. payment for every book sold or an artist album sold on VCD. Royalties are defined in Article 12 of the OECD Model…


Withholding tax in Singapore - Introduction

Concept of Withholding Tax When income is paid to a non-resident of a country, it is typical of the country to collect tax from the non-resident; the payee is required to withhold tax before paying the net amount to the non-resident. It is a tax subsidised by a non-resident on income derived or deemed…