Singapore

Singapore occupies a position few jurisdictions manage: genuinely competitive on tax while carrying a reputation that raises no questions with banks, regulators or counterparties anywhere in the world.

That reputation is the product of serious regulation, and it is not available to companies that want the standing without the substance.

The tax position

The headline corporate income tax rate is 17 per cent, with partial exemptions that reduce the effective rate meaningfully for smaller companies, and start-up exemptions available in the first years of trading subject to conditions.

Foreign-sourced income is taxed on a remittance basis, and exemptions are available where defined conditions are met, including that the income has been subject to tax in the source jurisdiction. There is no capital gains tax and no withholding tax on dividends paid to shareholders.

Singapore maintains an extensive network of double tax treaties, which is a substantial part of its value in group structures.

What it requires

Every Singapore company must appoint at least one director who is ordinarily resident in Singapore. This is a genuine requirement and it must be satisfied by a real person with real responsibility.

A resident company secretary must be appointed, a registered office maintained, and annual returns filed. Financial statements are required, with audit obligations depending on whether the company qualifies as a small company under the statutory tests. Goods and services tax registration applies above the prescribed turnover threshold.

Administration is efficient and predictable, but it is not light. Companies that fall behind on filings attract attention quickly.

Banking

Singapore banks are competent and internationally connected, and they apply compliance standards consistent with the jurisdiction’s reputation. Onboarding is thorough, source of funds is examined properly, and directors are commonly expected to attend in person.

Companies with genuine Asian operations, credible business plans and resident management are generally well received. Companies with no local connection are not.

When it fits

Singapore suits groups establishing an Asian regional headquarters, holding and investment structures where treaty access matters, and businesses whose counterparties or regulators would question a less reputable jurisdiction.

It is more expensive to establish and maintain than most alternatives in the region. Where reputation and treaty access are the objective, that cost is usually justified; where they are not, a simpler jurisdiction may serve better.