Tax Haven Singapore

Home / Tax Havens of the World / Tax Haven Singapore

Singapore tax haven is internationally known as a reputable financial center and quickly growing as a location for centralizing services. As a result, multinational corporations are increasingly being headquartered in Singapore tax haven.

Singapore is endowed with a multicultural work force to which many scholarship programs are made available through the government of Singapore tax haven along with educational institutions and private corporations. This allows people to receive high level training in various fields and helps to develop human resource and capacity in Singapore tax haven.

Country Overview

Singapore tax haven has a geographic location which is considered strategic and advantageous for trade and commerce. As a result, Singapore tax haven was long identified as a transshipment point and today is one of the leading transportation centers for air and sea cargo. Container ports are therefore busy, while there are at least 200 shipping line with connections in around 600 ports spread over 100 countries. Such extensive trade connections allow Singapore tax haven companies to access a larger number of markets and even more so due to lowered duties and exemptions which were achieved through free trade agreements.

Singapore tax haven lies at the southern end of the Malay Peninsula and is officially named the Republic of Singapore. Singapore is as an island-city state and was once inhabited by the Orang Laut who were an indigenous people to the island. At that time, fishing was the main activity of the people, until the British East India Company established themselves by setting up a post for trading. Spice was one of the commodities traded through Singapore tax haven and eventually, the island became known to house one the British Empire’s largest military and commercial zones.

The Japanese took over from the British during the Second World War but lost Singapore shortly after in 1945 to the British whose rule was once again established. In 1963, however, Singapore tax haven became an independent country and joined a short lived merger with Sarawak, Malaya, Sabah and Malaysia. In 1965, Singapore tax haven became a member of both the United Nations and the Commonwealth of Nations.

Tamil, Chinese, English and Malay are the official languages spoken in Singapore tax haven. The population is estimated at about 4.99 million, consisting of Indians, Singaporean, Malay and Chinese ethnic groups. Singapore tax haven is a parliamentary republic.

Singapore Fiscal Incentives and Advantages

Reports issued by the World Bank and the Global Competitiveness Report rank Singapore tax haven as the easiest place for doing business in the world and the most competitive country in Asia, respectively. Singapore tax haven imposes taxes on a territorial basis and therefore Singapore companies are not liable to any taxation on income which is not earned in Singapore. As a country with numerous investment opportunities, Singapore tax haven also offers the following benefits:

  • Zero taxation on offshore income and profits
  • Cost-competitiveness
  • Developed infrastructure
  • Professional, innovative and talented labour force
  • Strategic location
  • Pro-business environment
  • Wide network of Investment Guarantee and Free Trade Agreements
  • Rigid IP protection laws

Singapore Legislative Framework

Singapore tax haven offshore legislative framework regulates company and financial services taking place in and outside Singapore. These measures cover a broad range of areas including banking, insurance, trust and Singapore companies, securities exchange and financial fraud. The following is a list of some of the Acts which makes up Singapore tax haven legislative framework:

  • Trust Companies Act
  • Finance Companies Act (Cap. 108) 2000
  • Banking Act (Cap 19)
  • Deposit Insurance Act 2005
  • Securities and Futures Act
  • The Monetary Authority of Singapore (Sanctions – Democratic People’s Republic of Korea (Regulations 2009
  • Business Trusts Act

Singapore International Services

Singapore tax haven international and offshore services are advanced and supported by excellent infrastructure. Singapore tax haven companies are strategically located and are able to access various capital markets. Over 500 Singapore based financial and local companies offer sophisticated financial services while another 4,500 provide an array of professional services. As an international center and tax haven, Singapore is a well rounded offshore jurisdiction for doing business and entrepreneurship. Offshore services in Singapore tax haven include:

  • International banking
  • Singapore firm production, like Seychelles company formation
  • Company management, auditing and accounting services
  • Brokerage services
  • Fund administration
  • Advertising
  • Human capital services
  • Consultancy services
  • Legal services
  • Market research

Monetary Authority of Singapore (MAS)

The Monetary Authority serves as the financial services commission of Singapore tax haven and as such regulates the financial services sector. The responsibilities of MAS are relatively extensive given the Authority’s role as the Central Bank of Singapore, while administering monetary policy, overseeing payment systems, managing foreign reserves, surveying and supervising the financial services sector.

The Monetary Authority was officially formed I January 1971, following the passage of the MAS Act in 1970. The enabled the central bank to operate as a consolidated organisation to deal with Singapore tax haven’s increasingly complex financial growth, instead of numerous government ministries.

In addition to its initial functions, MAs became the regulator for insurance services in 1977 for Singapore tax haven. MAS is therefore currently in charge of securities, banking, insurance and financial services in Singapore tax haven. An address in February 2010 by Mr. Kola Luu, Executive Director of MAS states that during the economic downturn, the asset management sector performed better than the market. In 2008, the total amount of assets that were being managed amounted to some S$864 billion. By the first half of 2009, the most importance asset managers in Singapore tax havens experienced a growth of 23%.

Get to top