How to live and trade offshore (Singapore, etc)?

[xandman]

in Singapore you can create a company and hire yourself and pay a minimum salary approx. 3k~5K SGD per month and you get visa.

A phantom company with no care about your revenue sources?

 

[bpr]

A phantom company with no care about your revenue sources?

it could be a financial company where the income is from trading and a flat tax at 17%.
if you trade personally highest tax bracket 21% A company has highest tax at 17%.
This arrangement allows you to get a work visa and move in to Singapore in the first place. The visa can be extended for many years(not sure if there is a cap) till you meet the salary requirements.

This company tax is only applicable to income derived from Singapore only.
If you have any foreign income then there is zero tax as long as the money is not brought into Singapore.

So you can trade in Singapore exchange make enough to meet the salary requirement.
or you can trade foreign market and bring in enough to pay the salary req and park rest at foreign country and pay zero tax.

this is as per my research on internet some time back .. I am no expert ...You have to consult some expert to validate all of this...

 

[xandman]

it could be a financial company where the income is from trading and a flat tax at 18%.
if you trade personally highest tax bracket 21% A company has highest tax at 18%.
This arrangement allows you to get a work visa and move in to Singapore in the first place. The visa can be extended for many years(not sure if there is a cap) till you meet the salary requirements.

This company tax is only applicable to income derived from Singapore only.
If you have any foreign income then there is zero tax as long as the money is not brought into Singapore.

So you can trade in Singapore exchange make enough to meet the salary requirement.
or you can trade foreign market and bring in enough to pay the salary req and park rest at foreign country and pay zero tax.

this is as per my research on internet some time back .. I am no expert ...You have to consult some expert to validate all of this...

Can you make a rough guess if you can still contribute to the Singapore pension and get the match?

 

[bpr]

Can you make a rough guess if you can still contribute to the Singapore pension and get the match?

My guess would be yes.

This is how Company tax on Singapore looks like

Tax rate on corporate profits for up to 300,000 SGD 8.5%
Tax rate on corporate profits above 300,000 SGD 17%
Tax rate on capital gains accrued by the company 0%
Tax rate on dividend distribution to shareholders 0%
Tax rate on foreign-sourced income not brought into Singapore 0%
Tax rate on foreign-sourced income brought into Singapore 0 – 17% subject to conditions

as the minimum req for salary for 1 person can be met below 300K SGD you have to pay 8.5% corporate tax.
Again obviously you have to pay personal income tax on the salary that you are receiving.

Again when you set up new company they give some tax break some for initial years.

 

[carrer]

My guess would be yes.

This is how Company tax on Singapore looks like

Tax rate on corporate profits for up to 300,000 SGD 8.5%
Tax rate on corporate profits above 300,000 SGD 17%
Tax rate on capital gains accrued by the company 0%
Tax rate on dividend distribution to shareholders 0%
Tax rate on foreign-sourced income not brought into Singapore 0%
Tax rate on foreign-sourced income brought into Singapore 0 – 17% subject to conditions

as the minimum req for salary for 1 person can be met below 300K SGD you have to pay 8.5% corporate tax.
Again obviously you have to pay personal income tax on the salary that you are receiving.

Again when you set up new company they give some tax break some for initial years.

Thanks for the answers. I have a few things to clarify.

1. When the company is taxed at 17% a year, will it be imposed on the profit I made where I don't cash out the money (reinvested)? Or will it be only taxed when I cash it out.

2. When the money is cashed out, let's say 1 million after 3 years, it would be taxed at a corporate rate. Will I be taxed again at a personal level if I were to use the money for my personal expenditure?

If yes, How do we avoid being taxed twice?

 

[bpr]

Thanks for the answers. I have a few things to clarify.

1. When the company is taxed at 17% a year, will it be imposed on the profit I made where I don't cash out the money (reinvested)? Or will it be only taxed when I cash it out.

2. When the money is cashed out, let's say 1 million after 3 years, it would be taxed at a corporate rate. Will I be taxed again at a personal level if I were to use the money for my personal expenditure?

If yes, How do we avoid being taxed twice?

1) for singapore income No you pay 17% tax on profit made.
for foreign income yes 0% tax compounding until you move money back to Singapore.(I won't used the word cash out as it is inaccurate)

2) actually there is no double taxation the salary you give urself as employee is deducted as expense for the company.

You can actually spend on behalf the company as you also happen to be the owner of the company.

But if you still want to move money from company entity to personal entity you can do so via giving yourself dividend and capital gains both are 0% tax..but I think these will require more regulatory stuff/maintenance ...overkill imo ...