Tax Residency of a Company/ Certificate of Residence

Key requirements

IRAS generally examines control and management in the preceding calendar year for the relevant YA. Board meetings where genuine strategic decisions occur are relevant, but a Singapore meeting is not conclusive on its own. Directors’ location, decisions by the local director and key employees are among the facts considered. For a virtual board meeting, IRAS generally treats strategic decisions as made in Singapore where at least half of authorised directors, or the board chairman, are physically in Singapore. Foreign-owned passive investment holding companies and foreign branches face additional considerations. Residence can change between years. A Certificate of Residence supports treaty benefit claims; it is not a certificate that merely confirms Singapore incorporation. Residence may also affect specified foreign income exemptions, foreign tax credits and start-up exemptions.