If you are not opening a company in Singapore, it means that you are opening a company in another country, and tax treaty agreements may apply.FKinSG wrote: ↑Mon, 09 Sep 2024 5:34 pmHi all,
I am DP holder living in Singapore, and have been working remotely for a company outside of Singapore with no business in Singapore since 2 years and also paid taxes in Singapore for this job. This worked smoothly.
In addition to this, I'd like to open up my own company outside of Singapore with no business in Singapore. Do you know the tax situation for this if I am co-owner of the company? I couldn't find any useful information on IRAS on this particular situation.
Thanks a lot in advance!
FKinSG wrote: ↑Wed, 11 Sep 2024 8:05 pmThanks for the detailed reply!
Concerning personal taxes: yes, I am taxed in Singapore and that has never been a problem even though I work remotely for a Danish company.
Concerning opening up a company outside of Singapore: I would open up the company in Denmark. My personal and company tax situation is clear inside of Denmark. There is a tax treaty between Singapore and Denmark, so I would avoid double taxation.
So, my main question is how my personal tax in Singapore would change if I was a director in a foreign company and either receiving salary and/ or dividends from the company. I can't find any information on this anywhere.
As I see it, you must pay income tax to the Danish authorities for your earnings while living in Singapore and working for the Danish company, and, you must also pay income tax to the Singapore authorities because you are tax resident in Singapore.Where a resident of Singapore derives income from Denmark which, in accordance
with the provisions of this Agreement, may be taxed in Denmark, Singapore shall,
subject to its laws regarding the allowance as a credit against Singapore tax of tax
payable in any country other than Singapore, allow the Danish tax paid, whether
directly or by deduction, as a credit against the Singapore tax payable on the income
of that resident.
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