A Singapore branch of an overseas company is generally treated as a non-resident for tax purposes, because its control and management usually sits with the foreign head office. That limits, but does not entirely remove, its access to reliefs.
A branch cannot claim the Start-Up Tax Exemption (SUTE), which is only available to companies incorporated in Singapore. It also cannot claim benefits that depend on Singapore tax residency – most notably relief under Singapore's Avoidance of Double Taxation Agreements, and the exemption for certain foreign-sourced income.
However, a foreign company or its Singapore branch is eligible for the Partial Tax Exemption (PTE) on its normal chargeable income (75% of the first S$10,000 and 50% of the next S$190,000). A branch is also taxed at the same 17% rate and can benefit from the Corporate Income Tax Rebate where one is granted for the year.
Certain EDB or industry-specific incentives are assessed case by case and may require Singapore residency or a locally incorporated entity. If access to residency-based reliefs matters to you, a subsidiary is usually the better structure. Apexia can compare the two and advise on the right vehicle.