Holding Company
What is a holding company?
A holding company is a legal entity that owns shares in another company, also known as subsidiary, or an entity that exercises ownership or control over real estate, patents or other assets.
Holding companies are convenient legal vehicles to own shares, control other companies and most importantly to reduce associated risks for shareholders.
Advantages for starting a holding company in Singapore
Favourable domestic tax regime
- Singapore operates on a territorial-based regime. This means that profits are only taxed on locally sourced income and foreign income that is remitted back to Singapore.
- Singapore's Government offers generous tax incentives for specific industries and SMEs
- Companies can benefit from 0% tax on Capital Gains and Dividends Withholding
- Singapore has a low corporate tax rate capped at 17%
Find out more about Common Tax Reliefs for Singapore companies here.
Extensive tax treaty network for cross-border transactions
- Reduced withholding taxes on dividends, interest and royalty income across countries
- Relief from double taxation across different tax jurisdictions
- Clarity and transparency on tax treatment in different treaty countries
A full list of Singapore’s Tax Agreements can be found here.
A strategic location that is highly preferred by investors, VCs and entrepreneurs
- 0% withholding taxes on dividends and capital gains
- Tax exemption on foreign dividends, branch profits and technical services
- No capital control
- Stable government with highly digitised, efficient and transparent regulatory system - you will receive tax refunds in a reasonable time!
What are accounting and tax requirements for holding companies?
The following two reports have to be presented at the end of the financial year in the Annual General Meeting.
- A Consolidated Accounts of the company and its subsidiaries showing the consolidated assets and liabilities and hence the financial position of the entire group
- A Balance Sheet dealing with the state of affairs of the holding company which conveys the business activities and financial performance of the holding company
Sleek's accounting team can help you prepare the above documents for your holding company!
See our standard accounting and tax pricing here or else contact us now to get your own personalised quote!
See our standard accounting and tax pricing here or else contact us now to get your own personalised quote!
