I’m a non-resident director of a pte ltd in Singapore (I’m French, the other partner is Singaporean). I’m not on any EP.
I’m planning to pay myself for the first time from our company account. After reading some of the posts here I come to the conclusion that the best way tax-wise is to pay myself dividends. I’m the only shareholder. This way the company doesn’t have to pay any taxes - as opposed to 20% tax for director’s fee and 15% for income.
What is the procedure for paying out dividends? I know that we first need to pass the directors’ resolution. Then what?
Do I have to declare the dividends paid out in our accounts? I know that dividends are paid from the profit after corporate tax has been paid, which means after we have filed our accounts for the current FY. So do I declare the dividends in the next FY or not at all?
Also can dividends be paid out only if we have made profit for the FY? If for example we made profit last FY, this year we just broke even, can I pay out dividends from the cash assets brought over from last FY?
Thanks in advance for your help.