<p>  When we hear "offshore zone", we have an association - "tax paradise". Unfortunately, the companies established in the territory of classical offshore jurisdictions today have a very low level of trust. Therefore, to conduct business, a country needs not only low tax rates, but also high prestige. We recommend that you pay attention to an offshore zone such as Singapore, which can be called a tax haven thanks to a <em>flexible tax system</em>.</p><p> </p><p><span style="text-decoration: underline;"><strong>Singapore - midshore zone with some offshore's advantages</strong></span></p><p> The popularity of Singapore among the entrepreneurs of the world is determined not only by the flexible tax system, which we will talk about below, but also with high prestige.</p><p> So, there is practically no bureaucracy in Singapore. This is the main difference between Singapore and many other countries, including CIS. This became possible due to the developed system of e-government. Even the registration of the company here is done remotely by means of a special service provided that SignPass is available. If you do not have one, you can apply to the services of the registrar, in particular, to specialists of Offshore Pro Group.</p><p> There ara low crime rate and high standard of living in Singapore, which makes the country an ideal place to move and create their own business.</p><p> It is worth pointing to a high index of the rule of law and protection of intellectual property. In Singapore, in comparison with other countries in the world, the court examines cases as soon as possible. Thanks to a transparent and rigid legislative system, investors, business owners and locals can count on an honest resolution of the dispute.</p><p> Singapore's strategic location makes it attractive for international investment and the creation of a company that will operate in the emerging market of Asia. Moreover, the jurisdiction is in the TOP-3 of the best countries for business for a long period.</p><p> The developed infrastructure (for example, the fastest Internet in the country and the highest coverage in comparison with other countries) is ideally suited for starting a business in the areas like IT technology, e-commerce and others.</p><p> The high level of education of the local population allows not to worry about the possibility of a problem finding staff. Especially, the government is implementing a program of retraining and improvement of knowledge and experience of experts in accordance with the latest trends in the labor market.</p><p> </p><p><span style="text-decoration: underline;"><strong>Singapore - a midshore zone with a flexible tax system</strong></span></p><p> First of all, it is worth noting the quasi-territorial principle of taxation, which implies the payment of taxes only from the income received in Singapore. Also in the jurisdiction there is a single-level tax collection system. This means that the company's dividends received by shareholders are not subject to taxation.</p><p> Yes, Singapore has a corporate tax of 17%. However, the government has developed many tax incentives and incentives to reduce the tax rate to zero.</p><p> For example, there is a scheme for supporting young companies - start-ups. It provides for full exemption from taxation of the first 100 thousand SGD of annual income, 50% exemption of the next 200 thousand SGD, and all that over 300 thousand SGD is taxed at the full 17% rate.</p><p> In 2018, there is also a tax discount of 50%, but not exceeding 20 thousand SGD.</p><p> There are many benefits and incentives for companies established in various areas of the country's economy, especially in the field of robotics and R &amp; D. In particular, the PIC scheme, which implies full exemption of companies from taxation, provided that their profit for the year is 28 million SGD. Also, international trade companies have the right to tax incentives. They are granted preferential tax rates of 5-10% for a period of 5-10 years, subject to compliance with the provisions of the Global Tradere scheme. Qualified offshore funds do not pay taxes on dividends, income and interest on traditional types of investments (from shares, securities, bonds, deposits, etc.).</p><p> It is worth noting the flexible system of taxation of individual income. Tax rate varies depending on the amount of individual income from 0% to 20% (for an amount over 320 thousand SGD).</p><p> In Singapore, there is no capital gains tax, inheritance and luxury tax.</p><p> There is no additional value tax in the jurisdiction, but there is a tax on goods and services that apply to goods and services supplied or imported to the territory of the state. The amount of tax is 7%. It is not levied from the supplier company, but from the final buyer. The tax on goods and services does not include exported goods, international and financial services, sales and leasing of residential real estate.</p><p></p><p>It is worth noting also the tax at the source, the amount of which depends on the type of payment of non-residents of the country:</p><ul><li>Percentages, commissions and other types of payments on arrears - the tax rate is 15%.</li><li>Royalties and other payments for the use of real estate - 10%.</li><li>Management of economic activity and provision of services - 17%.</li><li>Rent, transferred to the account of a non-resident company - 15%.</li></ul><p> However, dividend received by a resident company from a foreign source, profits from branches in other countries and provision of services in the territory of other states are exempt from taxation.</p><p> The withholding tax for individuals who are non-residents is 15%.</p><p> </p><p> Summarizing, we are quite sure to declare that Singapore is a midshore zone through a flexible tax system with tax incentives and incentives.</p><p></p><p style="text-align: center;"><em><span lang="EN-US"><span face="Calibri" size="3"><strong>CASTLE FAMILY OFFICE</strong> experts are certified specialists in various fields. You can get professional advice on the Singapore tax system by writing to us via email <strong><a href="mailto:info@castle-familyoffice.sg">info@castle-familyoffice.sg</a></strong></span></span></em></p><p></p>