Singapore has signed Avoidance Double Taxation Agreement (“DTA”) with around 100 countries. This extensive DTA network allows Singapore tax resident companies to avail tax treaty benefits (i.e., lower withholding tax rates or tax exemptions) on certain income derived from treaty countries.
However, to enjoy such tax benefits, the Singapore company must prove that it is a Singapore tax resident by providing a Certificate of Residence (i.e., a letter issued by IRAS to certify that the company is a tax resident of Singapore) to the foreign payer company that will submit the document to their local tax authorities.
To obtain the Certificate of Residence, the Singapore company will have to apply to the Inland Revenue Authority of Singapore (“IRAS”), who will assess if the Singapore company is a Singapore tax resident before providing the Certificate of Residence.
Please note that by incorporating a company in Singapore does not automatically means you can obtain a Certificate of Residence. There are conditions that IRAS will look for to determine if your company is a Singapore tax resident. You can refer to our Singapore corporate tax residency article here for more details on this topic.
Letter of Tax Residence
Further if you are not claiming any tax treaty benefits but wishes to obtain a letter certifying that your company is a tax resident of Singapore, you can write to the IRAS to obtain a letter of residence.
In your letter to the IRAS, you must provide your reason(s) for requesting for the letter of residence and support that the control and management of the Singapore company is exercised in Singapore for the calendar year which the letter is required.
This is not a straightforward process as your letter will need to include information and supporting documents to prove to the IRAS that the control and management was exercised in Singapore.
How NovoPlus can help?
Are you looking to apply for a Certificate of Residence? Or you like to write to the IRAS to get a letter of residence? Or you are wondering if your company is eligible for a Singapore Certificate of Residence?
Our team of experienced tax consultants are here to help. We have assisted many of our clients in successfully obtaining their Certificate of Residence or letter of residence from the IRAS. Please feel free to contact us at finance@novopluscorp.com or reach out to us on Whatsapp using the button on the right of the website to discuss the matter.
Last Updated on 23/05/2024 by Dennis Chew