Taxation of Trusts in Singapore
The tax treatment of trusts is dependent on the residency of the trust. Where there is residency in Singapore, and an exemption does not apply (exemptions applying to foreign trusts and locally administered trusts are considered in this article), income derived by trusts will be either taxed at the trustee level or in the hands of the beneficiaries. In any case, only one level of tax will be suffered.
Singapore Withholding Tax
Generally, corporates and individuals who are tax residents in Singapore are subject to Singapore tax.
Corporates and individuals who are not tax residents in Singapore (“non-residents”) may be subject to Singapore tax as well, via the withholding tax (“WHT”) system, by virtue of them having income of a Singapore source.
Holding Company in Singapore
A holding company or investment holding company, refers to one that owns assets from which passive sources
of income are derived, as opposed to an operating company which supplies goods, services, or both. For an operating company, there is often a natural jurisdiction for establishment based on the location of activities of the proposed business, this is not necessarily the case for a holding company.
Overview of Funds in Singapore
Factors including a stable political system, strategic geographical location, access to foreign investors, and the relative ease of doing business in Singapore as well as the pool of skilled professionals have assisted
Singapore to become one of the most attractive global asset and wealth management hubs.
Singapore Budget 2022
On 18 February 2022, Mr Lawrence Wong delivered his first Budget announcement in his capacity as the
Minister of Finance. This year’s Budget – “Charting our way forward together”, laid out the government’s vision
for Singapore as a place to study, work and to live.
Singapore COVID-19 Business Support Measures
Deputy Prime Minister and Minister for Finance Heng Swee Keat delivered the Ministerial Statement on 17
August 2020, further to the Unity, Resilience, Solidarity and Fortitude Budgets. As the pandemic continues
and the economic downturn protracts, the Government looks to roll out additional support for businesses and
Singapore Variable Capital Company
With the implementation of the Variable Capital Company (VCC) Act and the VCC framework, VCCs have been described to be a “game changer” for Singapore’s wealth management landscape, putting Singapore on par with global asset management hubs, providing an “onshore” solution for structuring investment funds.
Singapore is a major international financial centre located in South East Asia. Its remarkable growth story since independence in 1965 is such that Singapore is now a major international player in financial services, shipping, banking, manufacturing, and research & development. Indeed, Singapore is recognised as one of the world’s leading financial centres and its port is one of the five busiest in the world.
Taxation of Trusts in Singapore
The tax treatment of trusts is dependent on the residency of the trust. Where there is residency in
Singapore, and an exemption does not apply (exemptions applying to foreign trusts and locally
administered trusts are considered in this article), income derived by trusts will be either taxed at the
trustee level or in the hands of the beneficiaries.