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What is the difference between a resident and a non-resident Singapore company?

Forum -Question and AnswerCategory: SingaporeWhat is the difference between a resident and a non-resident Singapore company?
Anitha asked 12 months ago
1 Answers
Best Answer
imc Staff answered 12 months ago

A resident company of Singapore will be the one whose business’ control and management is exercised in Singapore. Whereas a non-resident company will be the ones which are not resident in Singapore and hence are not subject to its tax system; for example, branch offices of any Foreign Company.
But there are many benefits that only to a resident company gets and therefore a lot of companies opt to become resident companies.
Some of the benefits of becoming a resident company are:

  • benefits under Singapore’s huge network of Double Tax treaties
  • benefits under Singapore’s vast network of Investment Guarantee Agreements (if the company wants to invest abroad)
  • tax exemptions that a company gets on certain foreign-sourced incomes like dividends, service income and branch profits
  • tax exemption schemes for Singapore-based companies