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Singapore: Domestic Corporate Taxation

Branch or Subsidiary

There are distinct tax and other advantages to establishing a Subsidiary in Singapore, compared to a Branch.

A Subsidiary must be registered as a private company limited by shares, with the parent company as the majority or sole shareholder. This means the Subsidiary operates as a legal entity in its own right, and that the parent as shareholder is not liable for the debts and obligations of the Subsidiary. Moreover, as a Singapore-registered business, the Subsidiary can benefit from the same tax exemptions and incentives as exist for other local businesses.

In the case of a Branch, on the other hand, the parent is liable for the debts and obligations of the Branch, and the Branch cannot qualify for local tax exemptions and incentives.



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