KNOWLEDGE BASE

INTERNATIONAL TRADE

Utilising Singapore

Overview Taxation The Non-Resident Company The Limited Liability Partnership

OVERVIEW

Singapore is a major International Financial Centre and considered as one of the best places in Asia from which to conduct International Trade and Investment.

At the heart of Singapore’s thriving business culture is a unique blend of competitive strengths that makes Singapore the location of choice for global enterprises. The combination of core competencies, physical location, Western sophistication and Eastern growth potential confers a host of benefits to businesses. Back to top

TAXATION

The Singapore taxation system is territorial and therefore income tax is only levied on net income from Singapore sourced revenue or on foreign sourced income remitted to Singapore.

The corporate tax rate is currently 17%. There is no capital gains tax and Singapore does not impose withholding tax on the payment of dividends, rentals or technical assistance. It is also important to note that Singapore provides certain exemptions on foreign income remitted to Singapore. If such income has suffered taxation of at least 15% in the remitting country.

Singapore has an extensive double taxation treaty network covering 80 countries including China, Indonesia, Korea, Malaysia, Pakistan, Taiwan, Thailand and Vietnam. A limited treaty exists with the United States of America which covers only income from shipping and/or air transport.

Back to top

THE NON-RESIDENT COMPANY

A Singapore Company is deemed to be resident if the central management and control is exercised in Singapore. Therefore if the Directors and Members reside outside Singapore the company would be deemed to be non-resident for tax purposes thus foreign sourced income, which is not remitted to Singapore, would not be chargeable to taxation.

THE LIMITED LIABILITY PARTNERSHIP

Taxation

From a tax perspective, Singapore LLPs are not taxed at the entity level and profits are treated as part of each partners’ personal income and are taxed at personal income tax rates. Where the partner is an individual, his share of income from the LLP will be taxed based on his personal income tax rate. Where a partner is a company, its share of income from the LLP will be taxed on the tax rate for companies.

Members & Management

  • There must be a minimum of 2 partners. However there is no cap on the maximum number of partners in a LLP.
  • The partners can be natural persons or companies
  • A partner may cease to be a partner upon his death or dissolution or in accordance with the limited liability partnership agreement (if any) or, in the absence of such agreement, by giving 30 days’ notice to the other partners.
  • A proposed new partner requires the consent of all existing partners. Other matters are decided by majority vote, with each partner having one vote.
  • Unlike private limited companies, an LLP in Singapore does not have directors, shareholder or secretary, instead the partners own and run the business.
  • Every limited liability partnership must appoint at least one manager who is a natural person of at least 18 years of age and who is ordinarily resident in Singapore, a Singapore Citizen, Permanent Resident, or Employment Pass holder.

Back to top
CONTACT A CONSULTANT

A bespoke 'offshore' solution can be complex and requires careful planning and execution. We therefore encourage our clients to contact us directly, without obligation.

While all of our consultants in our offices provide a Free Initial Consultation, the office and consultant listed below has particular expertise in this area and will gladly assist with advice on how to approach your unique challenge.

Alternatively, to select one of our multilingual offices, click here for a list of our office contact details.

OCRA (Singapore) Pte Limited
8 Temasek Boulevard
#35-03 Suntec Tower 3
Singapore 038988
Tel: 
Fax: 
Email: 
+65 6535 3382
+65 6535 3991
singapore@ocra.com.sg

Languages spoken in this office: English

REQUEST A CALLBACK

Simonne Toh (Director)
SINGAPORE OFFICE
Tel: 
Fax: 
+65 6535 3382
+65 6535 3991
Email: singapore@ocra.com.sg
Legal Warnings | Privacy Policy | Feedback     OCRA Worldwide 1995 -
Disclaimer: Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal or other
professional advice. OCRA Worldwide does not accept any responsibility, legal or otherwise, for any errors or omission.