- Hong Kong
- Sint Maarten
- United Kingdom
Due to its strategic location in the heart of Southeast Asia, for centuries, Singapore has been a hub between the East and West. Historically, the port has been its main source of growth — and still ranks amongst the largest ports in the world. In addition, Singapore has grown into an established financial center for this region and the world.
Thanks to its highly educated, multilingual and flexible workforce, Singapore is a leading destination to set up business. The city-state is renowned for its political and economical stability, with the government actively creating one of the world’s most open economies. Singapore’s pro-business attitude is further enhanced by a robust and transparent legal system.
Singapore applies a territorial tax system, so a company is only liable for taxes on income accrued in or derived from Singapore, and on foreign income received in Singapore.
However, an exemption is available for certain foreign-sourced income received in Singapore. This applies to dividends, branch profits and service income, if certain conditions are met.
In addition to the favorable corporate tax rules, Singapore has no taxes on capital gains, no withholding taxes on dividends or on management fees, as long as the services are performed outside of Singapore and no thin capitalization rules.
Singapore also has double taxation treaties with over 70 countries, to further accommodate cross-border transactions. To further strengthen its, the authorities comply with the guidelines of the OECD with respect to the exchange of information for tax purposes, and therefore is part of the OECD white list.