A Singapore “resident” company is one for which the control and management of the business is exercised in Singapore while a company which is “not resident” in Singapore will not be subject to its taxation system in Singapore e.g. branch office of a Foreign Company.
Because of certain benefits which are available only to a resident company, many companies chose to become resident companies.
Some benefits of a resident company include:
- benefits conferred under Singapore’s vast network of Double Tax treaties
- benefits under Singapore’s wide network of Investment Guarantee Agreements (if the company wants to invest abroad)
- tax exemption on certain foreign-sourced incomes (dividends, branch profits and service income)
- tax exemption schemes for Singapore companies