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Paying oneself dividends

Discuss your views about Singapore business & economy, current policies & issues, starting a business in Singapore.

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Joined: Thu, 11 Nov 2004
Location: Still Fishing!

Postby sundaymorningstaple » Thu, 29 Dec 2011 12:02 am

Considering it's a spammer from Sri Lanka, it doesn't surprise me. Do your thing SE!

Posts: 5
Joined: Sun, 25 Dec 2011

Postby ericsha » Sat, 31 Dec 2011 6:07 pm

Hi StrongEagle.

Guess that is a misunderstanting.
I wrote before "end of year" not "end of this year"...

For sure, I was not asking how to get dividend before to get incorporated.

I'm not in Singapore by now, No more I visited the island since I've the contract.

My activity is going to start by Januray 2012, that's why I plan to incorporate on the same month.

As I'm well aware about the EntrePass, I was looking to know how to pay myself before i get it or an EP.

Should be ok if I pay me as a foreign director, isn't ?

Posts: 5
Joined: Sun, 25 Dec 2011

Postby ericsha » Sat, 31 Dec 2011 6:20 pm

Hello sundaymorningstaple,

What is your definition of a spammer ?

Have you read any message from me here advertising for something ?

You refered to my location ("sri lanka").
You're right, i do post today from Sri lanka.

However, i'm European, I do have a white skin, and I've been residing in a Western country most of of my life.

Hope this details will make you feel better about me.
You're a moderator, and i don't really want you to ban me just because your own considerations of asian people...

Posts: 8
Joined: Tue, 21 Jul 2009

Re: Paying oneself dividends

Postby kevin_al » Wed, 04 Jan 2012 3:41 pm

Setup a PTE LTD, and pay salary to you (as director).

wingnut wrote:Hi,

I have found this forum to be a wonderful repository of information, and have some queries which I hope will be answered here.

I am engaged in a line of self-employed work which some would call day trading (although I consider it multi-year trading actually!).

Doing so as an individual as opposed to a company means I am not required to pay tax, nor contribute to CPF. BTW, I'm local, and I'm not looking to cheat the system in any way.

It's all great except that now my wife has ceased employment to look after household affairs, there's no one in my family who's actually 'earning an income.' Or at least one that's easily identified as some sort of formal income.

Now as it turns out, I am looking at a personal venture which requires proof of income, not to mention the possibility of additional property purchases which will require financing.

Can I simply set up a private company for the sole purpose of paying myself annual dividends? The company won't actually be doing anything at all. Is there anything unlawful about this?

If it is viable, will the only way this dividend income show be in the annual tax return?

And does anyone have any idea how banks view this sort of income when assessing lending suitability? I do not expect to be approaching a bank for a loan until I have paid myself annual dividends for at least 2-3 years?

Again assuming it's a viable option.

Many thanks.

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