Today SIN has many overseas companies having operations here. Many of them leverage on SIN connectivity and industrial capabilities to expand their business globally.
Why overseas companies should consider setting up their regional HQ in SIN:
Economic Performance
• no. 2 worldwide as the city with the best investment potential for 16 consecutive years
• world leader in foreign trade and investment
Competitiveness & Business Environment
• 1st for having the most open economy for international trade and investment
• world’s easiest place to do business
• the most competitive country in world
• best business environment in Asia Pacific and worldwide
• Asia’s most “network” country
Business Legislation and Efficiency
• 1st in the world for having the best protection of intellectual property
• least bureaucratic place for doing business in Asia
Labour
• maintains top position in BERI’s Labour Force Evaluation Measure
• 7th in the world and 3nd in Asia for having the most motivated workforce
• among the top 5 in Asia for the best skilled labour
• labour regulations are the most business conducive in Asia
• has the best labour/employer relations in Asia
Expatriate Living
• foreign talent rank Singapore as Asia’s best country to work in
• first choice for Asian expatriates
• best place in Asia to live, work and play
• Singapore’s immigration laws for foreign talent highly-regarded for being business-centric
Government
• 5th in the world and 1st in Asia for having the least corruption in its economy
• most transparent country in the world and Asia
Expatriate Living
• foreign talent rank Singapore as Asia’s best country to work in
• first choice for Asian expatriates
• best place in Asia to live, work and play
• Singapore’s immigration laws for foreign talent highly-regarded for being business-centric
Low corporate tax rate – 17%.
Singapore's corporate tax rate is further reduced if a company qualifies for tax incentives, and all companies will now enjoy partial tax exemption on the first S$300,000 (US$196,141) of chargeable income. Therefore, the effective tax rate of many companies may be lower than the headline rate of 17 per cent.
Foreign income exemption
Foreign-sourced income is taxed only when it is repatriated back into Singapore. In addition, tax is not levied on foreign-sourced dividends remitted back into Singapore provided the dividends are received from a country with a headline corporate tax rate of at least 15 per cent.
Wide tax treaty network
Regional headquarters here can tap Singapore's extensive tax treaty network with over 50 countries to benefit from the reduced withholding taxes on dividends, interest and royalties. Tax treaties can also help to reduce instances of creating a taxable presence in foreign countries. Companies heavily involved in cross-border deals will find this useful to mitigate double taxation.
Regional HQ incentive
Companies which are conferred the RHQ status enjoy a concessionary tax rate of 15 per cent for qualifying income arising from headquarters activities and operations carried out from Singapore. Those awarded IHQ status enjoy even further attractive tax rates of between zero and 10 per cent.
Not Ordinarily Resident scheme
Employees who travel extensively can benefit from this scheme to reduce their personal Singapore income tax if specified conditions are satisfied. For those on tax equalization, this scheme will help to reduce the operating costs of the regional headquarters company.
Writing-Down Allowance (WDA) for Intellectual Property (IP)
Regional headquarters which use Singapore as an international IP holding location may claim WDA for the cost of acquisition of the IP.
Proactive Regulators and Agencies
Many countries in the region are in the race to be the choice regional holding or headquarters location. In the face of such competition, the responsiveness of our government is key to ensuring that Singapore continues to stay ahead in the race to be the preferred regional headquarters hub.
To have a successful business, one has to:
• Maintain focus on core businesses
• Effectively managing technological change
• Continue expansion of our South-East Asia presence
• Balance & work together as one group, while maintaining the strength of their individual product lines
• Become a better self-managed organization by becoming more responsive to change, more adaptive to the environment, and more dynamic.
Dividends are distributions by a company to its shareholders.
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