The amendments introduced by virtue of the Protocol concern cutting the withholding tax rate for dividends, interest and royalties.
A 5% dividend tax rate will be applicable in case of US$100,000 investment to the Russian or Singapore economy. Otherwise the rate will amount to 10%.
The royalty and interest tax rate will amount to 7.5%.
Singapore offshore companies are becoming of more interest among former-USSR businessmen. We have noted a sustainable growth of orders for registration and servicing of Singapore offshore companies. Not being mediators between Singapore secretarial and audit companies, and the clients, we do everything by ourselves when providing registration and servicing, bookkeeping and tax reporting as per the IFRS, as well as effective tax planning, drafting and submission of tax returns for offshore companies of our clients. We successfully passed all professional exams; were awarded with an ACRA license and accumulated extensive experience in solving complicated issues within the offshore remit.
In addition, the tax system of Singapore is quite simple, but nonetheless has its own idiosyncrasies. For instance, the withholding tax is levied on any interest of a Singapore company’s debt to an overseas contractor. One easily can get mislead by not being aware of this regulation. To avoid this, we recommend attending our free webinars on Singapore’s tax system, where experts explain the basics and give recommendations with respect to offshore companies.