Singapore is a well-established strategic hub for both domestic and international investments, offering significant tax advantages. To fully leverage these benefits, companies must maintain their tax residency status in Singapore. Failure to do so can lead to substantial tax liabilities and the loss of important tax incentives.
A company is deemed a tax resident in Singapore if its control and management are exercised within the country. This status allows access to tax exemptions on foreign-sourced dividends, foreign tax credits, and relief from capital gains tax. To secure tax residency, companies should hold board meetings in Singapore, make strategic decisions locally, and have key personnel based in the country. As global tax regulations become increasingly stringent, businesses must proactively comply with these residency requirements to optimise their tax position and avoid potential penalties.
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