Taxes Remain One of the Main Attractions for Singapore Offshore Company Setup
February 16th, 2012February 8th, 2012—Singapore—Although Singapore offers several advantages as well as benefits for foreign entrepreneurs, as far as offshore company owners are concerned, taxes remain amongst the top attractions in Singapore. Foreign business owners who setup a company in Singapore and reside overseas catering to foreign markets prefer the liberal taxation policy as well as incentives such as zero taxes for foreign sourced income available in Singapore.
According to sites such as SingaporeStartup.com (www.singaporestartup.com) that provide information to foreign entrepreneurs interested in setting up an offshore company in Singapore, many business owners first look at the taxation policy in the offshore location and then check out rest of the laws and policies. Most offshore companies prefer a location that either offers a zero taxation policy for international companies or at least a maximum tax rate that is much lower than what they would pay in their home country. The advantage of taxes in Singapore is firstly the country has the second lowest corporate tax rate in entire Asia. Apart from that, Singapore also provides the possibility of zero taxes to offshore companies since it follows the territorial system of taxation. As per this system, foreign sourced income is completely tax free as long as that income has not been deemed as remitted to Singapore. Besides no taxes for foreign sourced income, there are a host of other benefits such as zero taxes for capital gains, tax incentives such as concessions for companies having revenue less than SGD 300,000 for the first three years in operation etc.
Of course, SingaporeStartup.com also cautions foreign business owners to study the policies carefully and talk to a professional consulting firm if required to understand if the tax incentives apply to them. For example many foreign companies confuse what constitutes foreign sourced income and are under the impression that all revenue generated from overseas are completely tax free. These need to be clarified with a professional tax consultant based in Singapore and then only companies must finalize their plans.
About SingaporeStartup.com
SingaporeStartup.com is a leading portal which focuses on offshore companies in Singapore. The site provides in-depth guides on how to setup an offshore company in Singapore and also provides information on laws as well as policies which affect offshore companies in the country. For more information, please visit http://www.singaporestartup.com/
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