Viewpoints

A company is considered as resident in Singapore if the control and management of the business is exercised in Singapore. Although the term “control and management” is not defined explicitly by authorities, a generally accepted consensus is that it refers to the policy level decision making at the level of Board of Directors and not the day-to-day decision making and operations. In general, a company is considered non-resident in Singapore if the directors manage and control the business and hold board meetings from outside Singapore. This is true even if, for example, the lower level operations are taking place in Singapore. A company’s residence may change from one year of assessment to the next depending on the circumstances. A Singapore branch of a foreign company is generally not treated as a Singapore tax resident since the control and management is vested with an overseas parent company. The basis of taxation […]

Stamp duty is computed on the consideration or total value of the shares transferred, whichever is higher. Newly incorporated companies are those companies incorporated less than 18 months from the transfer date. The following points must be noted: If the newly incorporated company does not own any properties, the allotment price can be used. If the newly incorporated company owns properties, management account has to be prepared to determine the NAV of the shares. This must be certified by the director or secretary of the company and accompanied by the last audited accounts.   Stamp Duty Computation An example on the computation of stamp duty on the transfer of ordinary shares in newly incorporated companies is as follows: What is the stamp duty payable Number of shares to be transferred 50,000 Value per share $1.00 Consideration $45,000 Transfer of ordinary shares in newly incorporated companies (1) Determine whether Total Value […]

Overview of Singapore Sole Proprietorship A Sole Proprietorship may be described as a business that is carried on by an individual on his or her own without the use of a separate and distinct business form. The sole proprietorship is the simplest form of business organization. The law does not regard the sole proprietorship business as a different entity from its proprietor (or owner). As such, all rights that the business has are rights that belong to the proprietor. Similarly, all liabilities or debts that are incurred by the business are in law the liabilities or debts of the proprietor. The assets and profits that the business generates are owned by the proprietor who is personally liable to pay whatever tax payable in respect of these assets and profits. Should the proprietor die, the business will cease to exist.   Registration and Compliance When a person wishes to carry on […]

1. Introduction to Singapore Representative Office A Singapore Representative Office provides a foreign company interested in establishing operation in Singapore an avenue to assess business opportunities in Singapore market prior to making any long term or large-scale commitment. A Representative Office cannot engage in direct business activities, i.e. commercial profit-making activities. If you choose to set up a Singapore Representative Office and relocate someone to Singapore to run the representative office, you must take the following steps: (1) Apply to International Enterprise Singapore (IE Singapore) to register the Representative Office. Kaizen can assist you in the registration of your Representative Office in Singapore. (2) Apply for an Employment Pass only after you have succeeded in registering the Representative Office. The Employment Pass application is for the Chief Representative who is the appointed staff member from the foreign company. The Employment Pass will allow the Chief Representative to relocate to Singapore […]