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