The Non-Resident Company
The Limited Liability Partnership
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
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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.
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.
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.
A bespoke 'offshore' solution can be complex and requires careful planning
and execution. We therefore encourage our clients to contact us directly,
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.
Languages spoken in this office: English
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