Family Office / Investment Holding Company

Singapore foreign trust an attractive planning vehicle for the international private client to achieve tax effective wealth preservation, estate planning, and succession planning objectives.

Why a Singapore foreign trust?

Section 13G of the Income Tax Act exempts specified income from designated investments derived by an eligible holding company or a foreign trust, which is administered by a

Trustee company. Under the Income Tax Act a “trustee company” means a trustee company licensed under the Trustee Companies Act 2005 or a company such as Paul Hype Page & Co, a Public Accounting Firm that is exempted under that Act from holding a trust business license.

For Client who wants 100% Confidentiality, The Singapore tax law does not require the disclosure of the identity of the settlor nor the beneficiaries of a foreign trust. There is no requirement for the foreign trust to be registered, nor for the trust ‘Deed of Settlement’ to be filed with any government authority.

Who is Suitable for Singapore Foreign trust

(i) individuals who are neither citizens nor residents of Singapore,

or

(ii) foreign companies1, and includes a unit trust that is beneficially owned wholly by such individuals

or foreign companies

A private trust company is a corporation formed for the express and sole purpose of acting as the trustee of a specific trust or group of trusts. It does not otherwise

carry on business as a trustee company.

Why a Singapore Private Trust Company?

The section 13G income tax exemption is available to a Singapore foreign trust which has a Singapore private trust company as its trustee.

If the Singapore private trust company is resident in Singapore for income tax purposes then it, and the foreign trusts of which it is trustee, may be able to obtain the benefits available under Singapore’s double tax agreements. If so entitled, then foreign withholding taxes on income remitted to the Singapore private trust company as trustee of the foreign trust, may be reduced.

Who is Suitable for Singapore Private Trust Company:

It is suitable for family members  as to qualified as a Singapore Private Trust Company each beneficiary of the trust(s) is a connected person to the settlor of the

trust(s), and each settlor of such a trust is a connected person in relation to any other settlor of any other trust

to which that corporation provides trust business services. “Connected person” is defined in the Regulations

and includes, inter alia, all relationships established by blood, marriage and adoption.

It is a Singapore company that that is widely used to hold foreign investments for both corporate investors and private clients.

Why a family owned Investment Holding Company?

It is useful for wealth management or success planning vehicle for its tax efficient as when qualifies as a Qualifying Family-Owned Investment Holding Companies  FIHC will be exempted from tax on all foreign sourced income remitted into Singapore as well as most types of Singapore sourced income.

Who is suitable for family owned Investment Holding Company?

– Suitable for carrying  on the principal activity of holding or making investments.

–  Be beneficially owned by an individual or individuals.