Singapore is a good place to set up a trust: Asiabiz Services
Singapore (PRWEB) April 22, 2014 -- Singapore is a good place to set up a trust as it has recently emerged to be one of the top 4 wealth management hubs in the world, says Asiabiz Services, a leading incorporation services company. The republic offers not only a safe and stable environment to do so, but provides ample opportunities to invest and grow wealth.
Commenting further, Mr. James Nuben, Head of Taxation at Asiabiz Services, said, “As the word suggests, trusts naturally gravitate towards safe jurisdictions, where there is consistency in tax policies, long-term stability and an abundance of investment opportunities. Singapore offers all that and more, including a legal framework which facilitates trusts as well as licensed trust companies to be established.”
Some of the reasons to set up a trust in Singapore are as follows:
SINGAPORE TRUSTEES ACT FACILITATES WEALTH MANAGEMENT
As part of the Singapore government’s goal to boost the city-state’s position as a leading financial and wealth management center, the Singapore Trustees Act was amended in 2004 to facilitate wealth management in Singapore via trusts and trustee services.
Foreigners are encouraged to use Singapore trusts. In some cases, they are excluded from forced inheritance and succession rules, which do not allow a person to dictate who will inherit the estate. This is provided that they can do so under either Singapore law, the law of their domicile or the proper law of the transfer.
Under the Trustees Act, the reservation of a settlor’s power is permitted. This means that no trust or settlement of property on trust shall be invalid just because the settlor reserves certain powers to himself. In addition, a 100-year perpetuity period has been introduced, making the trust valid for up to 100 years unless a shorter period is specified in it.
THE TRUST COMPANIES ACT ENSURES SINGAPORE TRUST BUSINESSES ARE LICENSED, BONAFIDE
The Trust Companies Act (TCA) 2006 Revised Edition is the legislative and regulatory framework for all financial institutions that provide trust services for investment and wealth management purposes, whether the trusts are established under Singapore law or other law.
It ensures that persons conducting trust businesses in Singapore are fit and proper for their role and have Trust Business Licenses. They are also to facilitate the prevention of money laundering as well as financing of terrorism.
POLITICAL AND ECONOMIC STABILITY
The Singapore brand is associated with trust and integrity because of the political and economic stability it offers. According to Transparency International’s Corruption Perceptions Index 2013, it is the 5th least corrupt country in the world and the least corrupt in Asia. The city-state is also known for its business-friendly policies, regardless of world economic crises. Singapore has been named the easiest place to do business for 7 years running by the World Bank not without good reason.
ATTRACTIVE AND CONSISTENT TAX POLICIES
Per Deloitte's recently released 2014 Asia Pacific Tax Complexity Survey, Singapore has one of the most consistent, least complex and most predictable tax policies in Asia Pacific. This reinforces the accolades it has received to date.
In addition, with effect from 2006, under the Income Tax Act (Exemption of Income of Foreign trusts), certain income derived from Qualifying Foreign Trusts (QFTs) and Qualifying Domestic Trusts (QDT) are tax free if administered by a Singapore licensed trust company.
RESPECT FOR RULE OF LAW
According to the IMD World Competitiveness Report 2013, Singapore has a very stable and enduring competitiveness model partly due to the respect to rule of law, effective governance, political stability and reliable infrastructure.
The city-state also has an internationally-acknowledged reputation for being vigilant against illicit funds that could threaten its integrity, and cooperates extensively with global authorities e.g. the Interpol, to deter and prevent such crimes. It also implements the internationally agreed Standard for Exchange of Information for tax purposes in its tax treaties.
ABUNDANCE OF INVESTMENT OPPORTUNITIES
Singapore allows trusts to invest and offers access to world class investment management services. According to the Monetary Authority of Singapore (MAS), there are also over 500 players in Singapore’s Asset Management industry operating under various license schemes.
In addition, it revealed that assets under management (AUM) grew 22% from S$1.34 trillion in 2012 to S$1.63 trillion last year.
“Singapore’s ascent to one of the top four wealth management hubs in the world has placed it alongside traditional hubs Switzerland, London and New York, and on the radar of high net worth individuals from all over the world. This in turn reinforces Singapore’s good standing to service trusts, as a means of managing wealth securely,” affirmed Mr. Nuben.
Start your Singapore incorporation journey at http://www.asiabiz.sg/services/incorporation.
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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 company incorporation, offshore company setup, accounting, taxation and other related corporate services. Asiabiz Services also provides work visa and immigration services professionals wishing to relocate to Singapore.
120 Telok Ayer Street, Singapore 068589
Phone: +65 6303 4614
http://www.asiabiz.sg
James Nuben, Asiabiz Services Pte Ltd, http://www.asiabiz.sg, +65 63034622, [email protected]
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