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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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