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Tax residence of company in Singapore

A company is considered as resident in Singapore if the control and management of the business is exercised in Singapore, if board meetings take place outside Singapore and management and control is exercised outside Singapore it will be considered non-resident. A company’s tax residence may change from one year of assessment to the next depending on the circumstances. The basis of taxation for a resident company and non-resident company is generally the same, with the exception of certain benefits that are only available to resident companies, including:

  • income tax exemption scheme for start-ups;
  • income tax exemption on foreign-source dividends, foreign branch profits, and foreign-source service income under section 13(8) of the Income Tax Act; and
  • benefits under the Double Taxation Agreements (DTA) concluded between Singapore and the treaty countries.
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