My main goal to run my setup from Singapore was to avoid bureaucracy and stupid EU laws, but still have a reputable jurisdiction to run a business in with 0 questions asked on outgoing (and incoming) payments. Again, this was the best choice I've made moving my business there. Regarding taxes check pwc.com they have a great overview on all countries. Btw regular IT business here, 10 year history. In the EU I had my accounts closed down, funds frozen etc
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Company in Singapore - crap or not?
- Thread starter Overtrade
- Start date
Sure, but your profit is just 50k? What if your business goes well and you have 1M in profits? You intend to just pay tax in Singapore and pay yourself dividends?
If that's the case you structure it in a way where the company getting this profit is in a low tax jurisdiction + substance + your residence also matters.
Example: Dubai + Singapore
But don't do any direct transfers between them if you're the ubo + director that will classify as profit shifting which can cause problems later.
Or if you have clients that pay only with crypto any banana republic company can work.
Why this is needed in my case - can't transfer anything from UAE to EU or other way around without AML bs, from Singapore to EU - zero problems.
You mean your Singapore company is not actually tax resident there. You just have one employee for fun and a bank account to remit what you pay him as salary?
You have 1M profit, remit 50k which you later pay out as salary locally. Thus no taxes? And management is in UAE and they don't care about any P(o)E(M)?
You have 1M profit, remit 50k which you later pay out as salary locally. Thus no taxes? And management is in UAE and they don't care about any P(o)E(M)?
Not a tax resident in SG yes. They only cared about shareholder's residence.
However we have a local director which is their requirement + 10 employees based around the world. We pay their salary (freelancer agreements) and they pay taxes based on their residence.
It depends on the business, where is the profit coming from? Investments, payments from clients for you services, real estate flipping...? If you have clients who pay in USDT for example you can use the UAE company for those payments, if they pay fiat use your Singapore company. Cover your business costs from your Singapore company.
What does the 10 employees do for your setup, it has no influence for having the company ?
Now it's beginning to make a bit more sense.
So a client pays fiat to the SG company and the SG company purchases services from the UAE company, lowering the profit of the SG company?
And then you also keep all/most expenses of the business in the SG company, further lowering profits, while the UAE company has very low expenses and hence high profits?
SG probably doesn't even apply transfer pricing checks since the company isn't tax resident in SG?
But then why would you have to pay any tax in SG at all? What do you tell SG where the company is actually managed?
Or do you tell them it is managed from SG (and thus tax resident in SG)? But then how do you get around the transfer pricing restrictions?
Also, is the UAE company exempt from tax? On what basis (which qualifying activity)?
Sounds very interesting.
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