Tax Residency - Benefits of being a SG tax resident

According to section 2 of ITA (Income Tax Act), the residency status of a company is dependent on the location where the control and management of its business is exercised. As control and management of a company is vested with the board of directors, therefore the place where the board meets is the place where management and control is exercised. 

Question:

Is a Singapore branch of a foreign company a tax resident in Singapore?

Answer:

No.

Benefits of being a resident company:

1. It is entitled to benefits conferred under the Avoidance of Double Taxation Agreements (DTA) that Singapore has concluded with treaty countries.

2. It can enjoy tax exemption on foreign-sourced dividends, foreign branch profits, and foreign-sourced service income under section 13(8) of ITA.

3. It can enjoy tax exemption scheme for new start-up companies.