<p>A well-developed infrastructure, a favorable economic climate, a huge number of qualified specialists, a strategic location and a tax policy - all these definitions are described by Singapore. Thanks to these advantages, the country attracted more than 7,000 transnational companies to conduct business in the Asia-Pacific region through Singapore.</p><p>The last of the companies that chose the location of Singapore's headquarters was GM - the company moved from its main office in China to its headquarters in Singapore.</p><p>Next, we want to present to your attention the reasons why international companies choose Singapore.</p><p><span style="text-decoration: underline;"><em><strong>Incentives to create a presence in Singapore</strong></em></span></p><p>The Department of Economic Development offers incentives for regional headquarters apartments (RHQ) and international headquarters apartments (IHQ). Companies that are RHQ status holders can take advantage of Singapore tax credits at a 15% tax rate for up to 5 years for incomes that arise as a result of operations and operations from Singapore.</p><p>Companies with IHQ status can use a more attractive tax rate from 0% to 10%. Regional headquarters of the apartment, which use Singapore as a holding to protect intellectual property, may receive partial depreciation to cover the costs associated with the protection of intellectual property.</p><p>In Singapore, the territorial principle of taxation is used, which means that holding companies and headquarters located in Singapore can repatriate dividends from their direct foreign subsidiaries to Singapore without any taxation. The same companies that are involved in the main types of economic activities, but can not comply with the qualification conditions for exemption from taxation, can apply for exemption from taxes on an ad-hoc basis.</p><p> </p><p><span style="text-decoration: underline;"><em><strong>Attractive taxation system</strong></em></span></p><p>Singapore also has a progressive tax rate, which is designed to stimulate business and the business environment. Rates of corporate taxes and taxes for individuals can be from 0% to 20%. There is no capital gains tax in Singapore. Similarly, the government offers every company registered in Singapore an automatic 400% reduction in the tax burden or an annual return of 60% for investment under the Productivity and Innovation Credit (PIC) scheme. It is also important to note that, thanks to this scheme, the government motivates entrepreneurs to register intellectual property. This can be explained by the fact that Singapore offers an excellent environment for the protection of intellectual property.</p><p> </p><p><span style="text-decoration: underline;"><em><strong>Singapore International and Trade Agreements</strong></em></span></p><p>Singapore can also offer entrepreneurs a large number of free trade agreements, as well as agreements to avoid double taxation - a total of 71 agreements. These agreements not only facilitate cross-border trade, but also protect investors in Singapore.</p><p> </p><p><span style="text-decoration: underline;"><em><strong>Global trade program "GTP" of Singapore</strong></em></span></p><p>Singapore offers preferential tax rates for a three-year, non-renewable period for fast-growing mid-sized trading companies that have chosen Singapore as their regional base for business activities. During this period, companies can create and develop their regional or global trading network, with Singapore as their trading base. After companies are able to show steady growth in accordance with GTP requirements - the requirements for the company's turnover and business expenses, they will be able to apply for a five-year renewable period under the GTP program.</p><p> </p><p><span style="text-decoration: underline;"><em><strong>The system of combining preferential taxation of foreign income (FTC) in Singapore</strong></em></span></p><p>Singapore introduced a new system of preferential taxation of foreign income for residents of taxpayers, allowing to combine benefits for foreign income, if the requirements are met. Foreign income must meet all of the following requirements:</p><ul><li>The profit tax must be paid in the jurisdiction from which it was received;</li><li>The tax rate in foreign jurisdictions must be at least 15% at the time of making a profit in Singapore;</li><li>Your foreign income must be taxed in Singapore;</li><li>And you have the right to claim the FTC in accordance with sections 50, 50A or 50B in the Income Tax Act.</li></ul><p>This federation system provides greater flexibility for taxpayer residents in Singapore, thereby reducing taxes paid from foreign incomes.</p><p> </p><p>In conclusion, we can say that Singapore is one of the most financially stable jurisdictions in the world. It is located in the heart of Asia and is the hub for commercial activities in this region. Due to the many incentives for companies and employees, the headquarters in Singapore can become one of the best business solutions ever made by multinational companies.</p><p></p><p style="text-align: center;"><em>If you have any questions, <strong>Castle Family Office</strong> specialists are ready to answer them! Write to us at: <strong><em><span face="Calibri" size="3"><span lang="EN-US"><span face="Calibri" size="3"><a href="mailto:info@castle-familyoffice.sg">info@castle-familyoffice.sg</a></span></span></span></em></strong> </em></p>