“On top of the various tax schemes offered to Singapore firms, the headquarters tax awards in turn equips international firms with additional tax savings that could be channeled towards their regional expansion needs.
Singapore (PRWEB) April 02, 2012
In a bid to serve a growing number of international firms that have chosen to be headquartered in Singapore, the Republic’s Economic Development Board (EDB) has recently pledged to attract more commodities and natural resources firms to opt for Singapore company formation.
EDB will also enhance its portfolio of trade treaties including avoidance of double taxation (DTAs), free trade (FTAs) and investment guarantees to enhance Singapore’s reputation as the best possible environment for business operations.
Singapore company registration consultancy Asiabiz Services supports this move and recognizes it as a means to further enhance its capabilities to meet the needs of a growing number of pharmaceutical, electronics, aerospace and financial firms that have set up their regional or global headquarters here.
Analysis by Asiabiz Services shows that in an economy consisting mostly of services (70%), the manufacturing sector, which makes up approximately a quarter of the economy, will remain vital to the nation’s future development. International manufacturers of pharmaceutical, electronic and aerospace products are also in good stead to benefit from a growing base of commodities and natural resources firms in Singapore.
Commenting on EDB’s plans, Mr. James Nuben, Head of Tax Division, Asiabiz Services said, “We recognize this as a step in the right direction. In the face of tightened immigration controls on basic-skilled foreign workers, these impending measures, together with existing policies, will help firms mitigate the short-term pains and compel them to take advantage of the various tax incentives as they participate in Asia’s growth story.”
AsiaBiz Services has recognized that firms are eligible for headquarters tax awards when they choose Singapore as their preferred location for a regional or global head office.
Regional headquarters award confers eligible firms with a 15% concessionary corporate tax rate for 3 to 5 years on incremental qualifying overseas income. The international headquarters award, on the other hand, is open to all firms that opt for Singapore company incorporation. Prospective firms that exceed the qualifying criteria for this award stand to receive customised incentive packages with lower concessionary Singapore corporate tax rates from EDB.
“On top of the various tax schemes offered to Singapore firms, the headquarters tax awards in turn equips international firms with additional tax savings that could be channeled towards their regional expansion needs. It is one of the incentives that has compelled firms like Rolls Royce, Abbott Laboratories and TriQuint Semiconductor Inc to set up their headquarters in Singapore. We therefore anticipate the impending measures to bolster Singapore’s manufacturing sector,” added Mr. Nuben.
ABOUT ASIABIZ SERVICES
Asiabiz Services is a Singapore-based consultancy that offers business solutions for both local and foreign professionals, investors and entrepreneurs. Our areas of expertise include Singapore company registration, incorporation, offshore company setup, accounting, taxation and other related corporate services. Asiabiz Services also provides Singapore employment pass and immigration services for foreign professionals wishing to relocate to Singapore.
120 Telok Ayer Street, Singapore 068589
Phone: +65 6303 4614