Establishing Tax Residency in Singapore for Foreign Investors
Foreign investors can gain access to treaty relief and lower tax rates by establishing genuine management and control in Singapore.
For multinational groups, obtaining Singapore tax residency is a strategic decision that can improve regional tax efficiency. Residency status determines whether a company can utilize Singapore’s network of more than 90 double tax agreements to lower withholding taxes and prevent double taxation on cross-border income.
The Inland Revenue Authority of Singapore (IRAS) reviews where control and management are genuinely exercised, as this status is not granted automatically upon incorporation.
The Certificate of Residence (COR) serves as evidence for foreign tax authorities to grant treaty benefits, potentially saving around US$200,000 annually.
Such savings can justify relocating strategic decision-making to Singapore for many groups.
Author's summary: Singapore offers tax benefits for foreign investors with genuine management and control.