Singapore

11 Chapter Q&A

• Chapter

  •  1 Chapter Importance of Management by Regional Headquarters

    1.1 Importance of Asian market

    1.2 Regional management of the Asian market

    1.3 Comparison of countries as headquarters

    1.4 References

     2 Chapter Regional Headquarters System and Utilization Examples

    2.1 Institution in Singapore

    2.2 References

     3 Chapter How to Utilize Regional Headquarters

    3.1 Method of Consolidating Profit by Dividend and Making it as Reinvestment Base

    3.2 Utilization as a Finance Company (Loan Function)

    3.3 Example of Utilization of Efficiency by Consolidating Settlement Functions

    3.4 Example of Reviewing Supply Chain Functions and Risks

    3.5 References

     4 Chapter How to Make Regional Headquarters

    4.1 How to Set Up a Regional Headquarters

    4.2 Singapore as a Business Base

    4.3 Corporate Law in Singapore

    4.4 References

     5 Chapter Overseas Relocation of Head Office Functions

    5.1 Head office relocation to low tax rate country

    5.2 References

     6 Chapter M&A

    6.1 Trends in M & A in Singapore

    6.2 Points to keep in mind when doing M & A

    6.3 Laws and regulations concerning M & A

    6.4 M & A process

    6.5 Tax on M & A

    6.6 M & A trends in Singapore

    6.7 Investment regulatory environment of Singapore

    6.8 Reference

     7 Chapter Accounting

    7.1 Accounting System in Singapore

    7.2 Accounting Standard in Singapore

    7.3 Disclosure System in Singapore

    7.4 Accounting Audit in Singapore

    7.5 Reference

     8 Chapter Tax Risk of Regional Headquarters

    8.1 Tax · Haven Countermeasure Tax System

    8.2 Foreign Subsidiary Dividend Income Non-inclusion System

    8.3 Transfer Price Taxation

    8.4 PE Certified Taxation

    8.5 Taxation of Country of Residence and Double Taxation by Source Taxation

    8.6 Tenuous Capital Tax System

    8.7 References

     9 Chapter Tax

    9.1 Tax system in Singapore

    9.2 Personal income tax in Singapore

    9.3 Corporate income tax in Singapore

    9.4 VAT in Singapore

    9.5 Other taxes in Singapore

    9.6 Singapore withholding system

    9.7 International tax in Singapore

    9.8 References

     10 Chapter Labor

    10.1 Work environment in Singapore

    10.2 Labor law in Singapore

    10.3 Social Security System in Singapore

    10.4 Points to keep in bringing Japanese to Singapore

    10.5 References

     11 Chapter Q&A

    11.1 Tax

    11.2 Labor

• 11.1 Tax

  • Q&A1

    Q.

    We borrowed it from the head office and withhold the withholding tax in Singapore for the interest payment.

    What are the procedures required in applying the reduced tax rate?

     

    A.

    Certificate of Residence (COR) of the Japanese headquarters is required to apply the reduced tax rate based on the tax treaty. COR is issued by the competent tax office and it is sufficient to submit once in a (tax) year. Take note that it is necessary to submit the latest in order to continue applying the reduced tax rate in the next taxable year. The form of COR shall be somewhat different depending on the country but it is issued by the Japanese tax office and there is no problem in Singapore and it prefers to check once when applying reduced tax rate in other countries.
• 11.2 Labor

  • Q&A1

    Q.
    I heard that Paternity Leave has changed. How should the enterprise side respond?
     
    A.
    Since 2017, the number of days of so-called father's child care leave has changed from one week to two weeks by Paternity Leave. As a company, it is necessary to grasp this information naturally, and it is necessary to check whether information such as employment rules are old. The salary at the time of vacation is a mechanism to charge the government after payment by the company. Take note that, do not forget to make a claim after obtaining childcare leave.

  • Q&A2

    Q.
    I heard that Maternity Leave has changed. How should the enterprise side respond?
     
    A.
    Maternity Leave Although it is a so-called maternity leave, this shall vary depending on the nationality of the child. This change shall only be made when giving birth of a Singaporean nationality. Until now, even when giving birth of a nationality of Singapore, 16 weeks if legally married, 12 weeks of maternity leave if not legally married had been granted. In this change they shall give maternity leave of 16 weeks even if they are legally married. In the 16 weeks, the company shall be responsible for the company for the remaining 8 weeks, but the maternity leave shall pay the salary and shall charge the government after the maternity leave. They need to check the status of employees who get the maternity leave and they will respond.

  • Q&A3

    Q.
    What is the current EP application requirements? I plan to have three new Japanese posters, but is there any problem?
     
    A.
    There was a change in payroll requirements from January 2017. The minimum salary so far was S $ 3,300, but now it has reached S $ 3,600.
    In addition, the following are requirements.
    I have a job offer in Singapore
    Engage in managers, managerial positions and special skill-intensive tasks
    Monthly fixed salary of S $ 3,600 or more
    I am a good university degree or I am qualified as a professional, or I have a special skill
    It is very ambiguous.
     

    First of all, about 1, if you are not an employee you cannot get an EP. The employer applies for EP. About 2, EP targets more than the position of the manager at the end. As for 3., S $ 3,600 is not enough, it is required to be salary according to employment history, and now it is considered that at least S $ 5,000 is necessary for Japanese. As for 4., basically 4 university degree is required, and it is considered that it is better that the higher ranking of the world ranking is better.

    Although this is a requirement presented from MOM, Singapore obviously requires Singaporean recruitment.
     
    Therefore, there are cases where attention letters have arrived from MOM to companies with a high percentage of foreigners, and in that case it can be said that it is difficult to acquire new EPs.
     
    As a matter of initial question, whether three assignees can take an EP is decided by comprehensively considering their job types and backgrounds, and the proportion of local recruitment in Singaporean companies. Due to a very vague system, every company needs to be concerned about staffing.