There are several tax advantages to setting up an offshore company in Singapore.

1. About the profit received on the territory

In the first 3 years of the company’s existence, profits up to S $ 100,000 are tax-free. Then between S $ 100,001 and S $ 300,000 the company will have to pay 8.5% and finally 17% on top of S $ 300,000.

To benefit from this exemption, a company must meet the following criteria:

• Be registered in Singapore
• Be a tax resident in Singapore
• Not have more than 20 shareholders, at least one of whom owns at least 10% of the shares.

2. About profits received abroad.

Companies are completely exempt from all taxes on all profits earned abroad, as well as on profits from financial securities.

In addition, Singapore has adopted a unified tax policy; that is, if the company was taxed on its profits, the dividend could be distributed to shareholders who would not be taxed.

Tax return

Each year, Singapore companies are required to submit the following documents to IRAS, Singapore Internal Revenue Authority:

• Assessment of a company’s taxable income (ECI)
• Company Income Tax Declaration (Form C)

An estimate of taxable income (ECI) must be submitted within 3 months of the end of the company’s fiscal year; and this date must be notified to IRAS if it is not December 31st.
If the ECI is filed on time, the company will be able to pay taxes in multiple installments; the sooner the ECI is sent, the more the company will have the ability to distribute payments.

Then, in March or April of each year, IRAS submits Form C, which is the company’s income tax return. The declaration must be completed by November 30 of each year. The tax return must be accompanied by the financial statements of the company, checked or not checked in accordance with the level of profit made.

Finally, Singapore allows companies to declare their income directly online, on the IRAS website.