SINGAPORE (PRWEB) April 30, 2014
Germany’s electronic behemoth Rohde and Schwarz has established their Asian headquarters last week in Singapore. The sprawling 12,000 square metre facility in Changi Business Park is the Munich-based company’s flagship research and development centre outside their country. On the back of this announcement, AsiaBiz Services anticipates that more global companies will be coming to set up headquarters in the Republic.
“Singapore has multiple incentives in place to attract foreign companies like Rohde and Schwarz to set up headquarters here, which ranges from tax cuts to trade facilitation”, ratifies Mr. James Nuben, Head of Taxation at AsiaBiz Services.
REWARDS TO SET UP HEADQUARTERS
Foreign companies that relocate their headquarters to Singapore are rewarded by a slew of incentives that include concessionary corporate tax rate. In addition, these business enterprises are also eligible to repatriate dividends from their foreign subsidiaries to Singapore without subject to Singapore tax.
Businesses that set up headquarters in Singapore also benefit from Singapore’s progressive tax system that limits effective corporate tax rates from 10% to 15%. This is 2% lesser than the marginal corporate tax rate for other companies. In addition, there is also no capital gains tax in Singapore in order to stimulate entrepreneurship and businesses.
MULTIPLE TRADE AND TAX AGREEMENTS
“In order to facilitate cross-border trade and to protect the interests of Singaporean investors, Singapore has forged a wide grid of (Foreign Trade Agreement) FTAs and (Double Taxation Agreement) DTAs”, said Mr. James Nuben. There are over 20 FTAs and 74 DTAs in Singapore that ensure Singapore remains an ideal destination for investors to reap maximum returns.
GLOBAL TRADER PROGRAMME (GTP)
Fast-growing and moderate-sized global trading businesses that set up regional headquarters in Singapore qualify for the GTP that offers concessionary tax rates during the initial three years of establishing headquarters. Upon satisfying the requirements on a minimum turnover and local expenditure, the trading enterprises can extend the incentive for another five years.
FOREIGN TAX CREDIT POOLING
Singapore also allows foreign tax credits (FTC) to be pooled on the income generated by the foreign companies from overseas, provided that the income meets several requirements. The FTC pooling is introduced by the Singapore Government to allow more leeway to resident taxpayers to reduce their Singapore tax expenditure based on the remitted foreign income.
NOT ORDINARILY RESIDENT PROGRAM
The NOR scheme rewards top professionals with a time-apportioned tax for five years of their employment in Singapore. This scheme is especially attractive for expatriates who spent at least 90 days outside the country.
“Thanks to all these incentives, AsiaBiz Services strongly believes that more global businesses will be attracted to register their headquarters in Singapore”, declares Mr. James Nuben.
Register your company in Singapore at http://www.asiabiz.sg/services/incorporation