5 ms·

I've just relocated to Singapore from Australia, and there has to be a lot more to the story than just "we registered a Singapore company". If you are resident

I've just relocated to Singapore from Australia, and there has to be a lot more to the story than just "we registered a Singapore company". If you are resident in Australia (or the company's primary business operations are conducted out of Australia), Australia will tax you - doesn't matter if your company is nominally registered in Singapore. I assume the founder relocated to Singapore - if she's just running the Singapore company while living in Australia, she's just not complying with the tax law.

markdown 7y ago
> If you are resident in Australia (or the company's primary business operations are conducted out of Australia), Australia will tax you - doesn't matter if your company is nominally registered in Singapore. Well you'll be taxed on your income, but the company won't be taxed by Australia.
- nmfisher 7y ago
  Not true. If your company is deemed to be a tax resident of Australia, it will be subject to Australian tax, even if it's a foreign-registered company. I can't register a Singaporean company, conduct all business physically from Australia as sole director under the banner of that company, and not pay Australian tax on the company's income (or GST). Well, of course you can try and do this - but it's illegal, and if the ATO finds out, you're in trouble. It doesn't matter that you don't pay yourself a salary or declare dividends. If the company's principal operations are conducted physically from Australia, it will be deemed to be an Australian tax resident. Now, different story if the company has a physical presence in Singapore - say, your cofounder/codirector works there with a few other employees). Then, the company's Singaporean presence might be substantial enough that the company is not deemed to be a Australian tax resident. Then you would only pay Australian tax on your personal income/dividends. Similar story if you're the only one conducting the company's operations, but you do so physically outside Australia for more than 6 months of the year.
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markdown 7y ago

> If you are resident in Australia (or the company's primary business operations are conducted out of Australia), Australia will tax you - doesn't matter if your company is nominally registered in Singapore. Well you'll be taxed on your income, but the company won't be taxed by Australia.

nmfisher 7y ago
Not true. If your company is deemed to be a tax resident of Australia, it will be subject to Australian tax, even if it's a foreign-registered company. I can't register a Singaporean company, conduct all business physically from Australia as sole director under the banner of that company, and not pay Australian tax on the company's income (or GST). Well, of course you can try and do this - but it's illegal, and if the ATO finds out, you're in trouble. It doesn't matter that you don't pay yourself a salary or declare dividends. If the company's principal operations are conducted physically from Australia, it will be deemed to be an Australian tax resident. Now, different story if the company has a physical presence in Singapore - say, your cofounder/codirector works there with a few other employees). Then, the company's Singaporean presence might be substantial enough that the company is not deemed to be a Australian tax resident. Then you would only pay Australian tax on your personal income/dividends. Similar story if you're the only one conducting the company's operations, but you do so physically outside Australia for more than 6 months of the year.

deleted 7y ago

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