By Vlad Cuc, specialist in company formation matters in Singapore
Holding companies are legal entities created with the purposes of gathering and administering the assets of other companies. This type of structure is very popular in Singapore because the shareholders of a holding company have various benefits.
The taxation of a holding company is also very advantageous in Singapore. Below, our company formation consultants in Singapore explain how holding companies are taxed in the city-state.
A holding company registered in Singapore will be treated as any other local company, therefore it will be subject to the corporate tax. The Inland Revenue Authority in Singapore (IRAS) is the main governmental body assessing the income of holding companies and levying the corporate tax.
The taxation of a holding company in Singapore is based on the following criteria:
We also offer accounting services in Singapore in order help foreign investors understands how the taxation of holding companies occurs.
Singapore is an attractive jurisdiction for setting up holding companies because of the advantages it offers from a taxation point of view. Compared to other states, Singapore offers the following tax benefits to holding companies:
The city-state is considered one of the best countries in the world for doing business in, so if you want to open a holding company here, please contact our Singapore company formation agents.