Bank regulations in Singapore

[MiguelDelgado]

Dear All,

I am thinking of collecting all my different assets around the world into one single location. As I live in Asia and heard that Singapore does not take any taxes on interests, it looks like this is the place. I am interested in placing my cash into various FCT accounts in various currencies (like Euro, US$, SFR) and investing in equity mutual funds.

Do have a few questions and would be very thankful for any answers:
1. Is it really the case that Singapore does not take taxes on interests?
2. What about inheritance tax?
3. What about confidentially issues with our home governments?
4. Can I easily open an account with a major bank in having only a tourist visa?
5. Which bank can you recommend me (government bank is probably the safest)?
6. Can I easily switch my cash from one to another FCT with limited fees?
7. What about fees on purchase/sell mutual funds and safekeeping mutual funds?
8. Assume Singapore banking system is very developed so it should be possible to do all the dealings (apart of the initial account opening) through internet banking, correct?

Thanks so much!

Cheers

[carteki]

Do have a few questions and would be very thankful for any answers:
1. Is it really the case that Singapore does not take taxes on interests?
True
2. What about inheritance tax?
No inheritance taxes for non-residents
3. What about confidentially issues with our home governments?
All Singapore banks are bound by confidentiality, but since it sounds like you're breaking your home country laws if they make a request to the SG govt for information - well, you take your chances.
4. Can I easily open an account with a major bank in having only a tourist visa?
Yes, you can open a non-resident account
5. Which bank can you recommend me (government bank is probably the safest)?
Not going to answer that one - that is your choice
6. Can I easily switch my cash from one to another FCT with limited fees?
Depends on the bank specific charges, but there are no official limitations on what foreign currencies you hold
7. What about fees on purchase/sell mutual funds and safekeeping mutual funds?
Depends on bank specific charges
8. Assume Singapore banking system is very developed so it should be possible to do all the dealings (apart of the initial account opening) through internet banking, correct?
Depending on your bank and their operating procedures you can give instructions remotely. Few banks offer online trading options and you'll still need to speak to a relationship manager to transact. Definitely will need a fax machine in my experience.

[zzm9980]

for #3-

If you're an American, you'll generally find one of three things amongst most banks and other investment firm type places:

A) They will either flat out refuse to take you, or severely limit your available investment options. Almost to the point where that StanChar 1.88% interest special offer will be the best thing you can do.

B) While signing up for the account, they'll prepare and print all of the required IRS and Treasury forms for you and make you sign them. How nice of them, eh?

C) Some will let you sign up, but make you sign something to the effect that you're not currently a US Resident, you promise to make any notifications and filings you're legally required to, and if you do return to the US you will close out your account.



Just in my own personal experience:
A- I know DollarDex will refuse you, and DBS/POSB and OCBC will severely limit you.
B- Citibank did this to me. I'm told HSBC will do the same.
C- I got this from KimEng, before Maybank bought them, or at least before the MayBank branding was on their site, so not sure if they act less 'shady' now and do A or B. I also tried a few other random small places I saw bus adds for an such that did this.

I do have a PM sitting from Carteki with someone to call. (I swear one day I will; it's just that when I got it a long time ago I wasn't familiar enough with the forum to trust a PM from some random person on the Internet offering financial help )

Right now I'm just using eTrade though, and fulfilling all of my duties as a US citizen. Mainly because my employer puts a not-insignificant amount of RSUs into an account there for me, and it seems like a huge hassle to move them out.

[beppi]

Do have a few questions and would be very thankful for any answers:
1. Is it really the case that Singapore does not take taxes on interests?
True

All interest earned (except on POSB savings accounts) is taxable. Capital gains (e.g. profit from trading shares, etc.) is tax-free.

[aster]

http://www.iras.gov.sg/irasHome/page04.aspx?id=2720

Interest from the following sources is taxable

Deposits with non-approved banks
Deposits with finance companies not licensed in Singapore
Pawnshops
Loans to companies, persons etc.


POSB is not the only "approved" bank.

[BillyB]

Dear All,

I am thinking of collecting all my different assets around the world into one single location. As I live in Asia and heard that Singapore does not take any taxes on interests, it looks like this is the place. I am interested in placing my cash into various FCT accounts in various currencies (like Euro, US$, SFR) and investing in equity mutual funds.

Do have a few questions and would be very thankful for any answers:
1. Is it really the case that Singapore does not take taxes on interests?
2. What about inheritance tax?
3. What about confidentially issues with our home governments?
4. Can I easily open an account with a major bank in having only a tourist visa?
5. Which bank can you recommend me (government bank is probably the safest)?
6. Can I easily switch my cash from one to another FCT with limited fees?
7. What about fees on purchase/sell mutual funds and safekeeping mutual funds?
8. Assume Singapore banking system is very developed so it should be possible to do all the dealings (apart of the initial account opening) through internet banking, correct?

Thanks so much!

Cheers

Equity funds that have done well to date (5yr Benchmark, excluding Japan) are:

Pacific Capital
Fidelity
I think T-Rowe Price

Anything above 8-9% is a solid return.....

[aster]

6. Can I easily switch my cash from one to another FCT with limited fees?

8. Assume Singapore banking system is very developed so it should be possible to do all the dealings (apart of the initial account opening) through internet banking, correct?

For foreign currency conversions it's best to have status with banks like HSBC or Citi and do it over the phone with your relationship manager. I don't think any bank has equally decent spreads when doing such conversions via internet banking...

[aster]

2. What about inheritance tax?
No inheritance taxes for non-residents

Do Singaporeans still get hit with inheritance tax? I thought they did away with this altogether...

[sundaymorningstaple]

2. What about inheritance tax?
No inheritance taxes for non-residents

Do Singaporeans still get hit with inheritance tax? I thought they did away with this altogether...

aster, you are correct. It was done away with in 2008.


Okay, here it is from the horse's mouth as it were.....

http://www.iras.gov.sg/irasHome/page.aspx?id=778