What is tax residency, and why does it matter?
A company is a tax resident if control and management are exercised in Singapore. Tax residency status impacts eligibility for tax treaty benefits and exemptions.
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
- tax exemption on certain foreign-sourced incomes (dividends, branch profits and service income)
- tax exemption schemes for Singapore companies