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What is the difference between a resident and non-resident Singapore company?

In Singapore, the tax residence status of a company depends on where the control and management of its business is exercised. A company is tax resident in Singapore if the control and management of its business is exercised in Singapore.

The basis of taxation for a resident company and non-resident company is generally the same. However, there are some benefits that a resident company can enjoy that a non-resident would not, for example benefiting from any applicable Avoidance of Double Taxation Agreements and various tax exemptions.

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What is the difference between full exemption and partial exemption for Singapore start-ups?

Full corporate tax exemption is on normal chargeable income up to $100,000 for the first three consecutive tax filing years. Thus is only granted to start-ups that meet the following criteria:

  • Singapore incorporated company
  • Tax resident in Singapore for the applicable year
  • Have no more than 20 shareholders in that year,
  • At least 10% of the shareholders must be individuals
  • Should a company not meet the requisite criteria, it would still be eligible for a partial exemption.