What is tax residency of a company
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A company is generally considered a tax resident of a country if the control and management of its business is exercised in that control during a particular tax year.
Under Singapore tax law, the tax residency of a company is determined by where the business is controlled and managed. The residency status of a company may change from year to year. Generally, a company is considered a Singapore tax resident for a particular Year of Assessment (YA) if the control and management of its business was exercised in Singapore in the preceding calendar year.
A company is a non-resident when the control and management of its business is not exercised in Singapore. ‘Control and management’ is defined as the making of decisions on strategic matters, such as those concerning the company’s policy and strategy. Where the control and management of a company is exercised is a question of fact.
Usually, the location of the company’s Board of Directors meetings where strategic decisions are made determines where the control and management is exercised. Under certain scenarios, holding Board of Directors meetings in Singapore may not be sufficient and IRAS will consider all facts provided by the company to determine if the control and management of the business is indeed exercised in Singapore.
Some examples of scenarios where the control and management of a company may be considered not exercised in Singapore include:
We generally push all companies registered in Singapore to be fulfill tax residency requirements and that includes;
Speak to us about qualifying your company as a tax resident of Singapore.
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