A thriving economy in Asia, Singapore presents an ideal destination for investors and high net worth individuals to park their money in the country. Not only does it provide sound investment opportunities, but it is also one of the best places to live.
As such, family offices and investment holding companies are fast booming in Singapore. Find out the differences and the advantages of setting up an investment holding company and/or family office.
Differences Between Family Office & Investment Holding Company
The difference between a family office and an investment holding company is as below:
There are 2 types of family offices:
What are the Advantages of Having a Family Office/ Investment Holding Company in Singapore
What makes Singapore an attractive location for setting up a family office? The advantages of doing so are listed below.
Tax Incentives for Singapore Family Office
There are 3 key tax incentives for setting up a family office in Singapore:
FAQs
Singapore’s personal income tax rates for resident taxpayers are progressive. This means higher income earners pay a proportionately higher tax, with the current highest personal income tax rate at 22%
The countries to which these tax exemptions apply are heavily involved in shipping and air routes to and from Singapore. Therefore, these exemptions encourage the people of these countries to continue to engage with and conduct business activities in Singapore.
The countries to which these tax exemptions apply are heavily involved in shipping and air routes to and from Singapore. Therefore, these exemptions encourage the people of these countries to continue to engage with and conduct business activities in Singapore.
Singapore’s current maximum personal income tax rate is 22%. This represents an increase from the prior maximum rate of 20%. On the other hand, the corporate income tax rate has steadily declined over the years. It once sat at 26% but is now at 17%.
Not all business entities in Singapore are eligible for the government’s tax exemption. Only private limited companies, foreign subsidiary companies, foreign branch companies, and Singapore offshore companies qualify for it. Therefore, business entities such as sole proprietorships, partnerships, and limited liability partnerships may not receive the tax exemption.