Singapore tops the World Bank Ease of Doing Business

Singapore tops the World Bank Ease of Doing Business report for the fifth consecutive year. Various public agencies including ACRA played a part to make Singapore the easiest place to do business.

The Doing Business 2011 ranks 183 countries on how they do in 9 areas including Starting a Business. For 2010, Singapore’s rank under two indicators, Starting a Business and Closing a Business, held steady at the 4th and 2nd positions respectively. 
[ACRA]

Withholding tax - Non-resident director

For tax purposes, a non-resident director is:

• a member of the board of directors (board director) of a company incorporated in Singapore and
•  physically present in Singapore for less than 183 days in the year preceding the Year of Assessment.

If payment of income is made to the individual in his capacity as a non-resident Director sitting on the board of directors of a company incorporated in Singapore, the employer is required to file Form IR37 and withhold tax at the non-resident rate of 20% from the Year of Assessment 2005. It does not matter where the board meeting is held or that he was physically not working in Singapore. For tax purposes, the Board Director will be treated as a non-resident if he is physically present in S'pore for less than 183 days in a calendar year.

Executive director

For tax purposes, an executive director :

• holds the job title of director e.g. marketing director or managing director and
• is involved in the daily running of the business operations

 If payment of income is made to him as an executive director exercising an employment in S'pore, he has to report his employment income in an annual tax form. The income would be exempt from tax for employment exercised for not more than 60 days in the calendar year. If the employment is for more than 60 days but less than 183 days in a calendar year, he would be regarded as a non-resident for tax purposes and his income would be assessed at a flat rate of 15% or resident rate, whichever is higher. The executive Director will be regarded as a tax resident if his employment period / physical presence meets at least 183 days in a calendar year. As a tax resident, his income will be taxed at graduated rates and personal reliefs granted to him.

For further information on withholding tax issues, contact as via blog or at bernard@grobartigerhafen.org

Services we provide

Corporate Secretarial Services

Range of services include,

• Incorporation of Companies
• Provision of Nominee Residential Director
• Provision of Nominee Shareholder
• Provision of Registered Address
• Opening of Bank Account
• Accounting Services
• Tax Planning
• Application of Employment Pass/EntrePass

New Company Startup in SIngapore

Tax exemption scheme for new start-up companies in Singapore

Under this scheme, a newly incorporated company that satisfies can claim for full tax exemption on the first $100,000 of normal chargeable income (excluding Singapore franked dividends) for each of its first three consecutive YAs.
A further 50% exemption is given on the next $200,000 of the normal chargeable income (excluding Singapore franked dividends), also for each of the first three consecutive YAs.

To qualify for the tax exemption for new start-up companies, your company must:
a) be incorporated in Singapore (other than a company limited by guarantee);
b) be a tax resident in Singapore for that YA;
c) have no more than 20 shareholders throughout the basis period for that YA where:
i) all of the shareholders are individuals beneficially and directly holding the shares in their own names; OR

ii) at least one shareholder is an individual beneficially and directly holding at least 10% of the issued ordinary shares of the company.


For more infomation contact us at bernard@grobartigerhafen.org or 65-90293036