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

A Singapore “resident” company is one for which the control and management of the business is exercised in Singapore. This means that a company which is not resident in Singapore will not be subject to its taxation system in Singapore e.g. branch office of a Foreign Company.

Because of certain benefits which are available only to a resident company, many companies chose to be become resident companies.

Some of the benefits include:

  • benefits conferred under Singapore’s vast network of Double Tax treaties
  • benefits under Singapore’s wide network of Investment Guarantee Agreements (if the company wants to invest abroad)
  • tax exemption on certain foreign-sourced incomes (dividends, branch profits and service income)
  • tax exemption schemes for Singapore companies