The Singapore Sling and HK Family Offices

I have been promoting the use of the Singapore company for 39 years. Now the choice is obvious. To re-domicile a company to Singapore is difficult. The use of a Singapore non-resident company which carries on business as a branch in Hong Kong as the Family-owned Investment Holding Vehicle (FIHV) is what I call: ‘The Singapore Sling’.

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The HK Inland Revenue Department has published:
IRD : Tax Concessions for Family-owned Investment Holding Vehicles.
The Monetary Authority of Singapore (MAS) approval of family offices in Singapore for tax exemption under Sections 13O & 13U of the Singapore Income Tax Act has become lengthy because of its success.

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Tax exemption for HK family offices avoids a lengthy process. For impatient families, going to HK first as an interim (or final destination), may be the solution. Why a Singapore Sling? Section 2 of the Income Tax Act (Cap. 134) defines a company which is ‘resident in Singapore’ as ‘a company… the control and management of whose business is exercised in Singapore’. Section 10(1) of the ITA provides that income tax shall be payable on the income ‘accruing or derived from Singapore [territorial basis] or received in Singapore from outside Singapore [remittance basis]’.
Therefore, a Singapore non-resident company (SNRC) can pay ‘tax free’ dividends to shareholders out of profits which have not borne corporate tax in Singapore (e.g., foreign-source income not remitted to Singapore). The branch in HK has tax exemption as an FIHV.

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The impatient family can still apply for Section 13U exemption by eventually collapsing the branch in HK when MAS grants approval. HK does not allow the redomiciliation of companies. The Singapore Sling obviates the use of offshore companies, which some families are averse to.

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Yours sincerely,
David Chong
PORTCULLIS GROUP
www.portcullis.co

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新加坡司令方案與香港家族辦公室

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近39年來，我致力於推廣於新加坡設立企業。然而這個選項已顯而易見：將企業遷冊至新加坡極其困難。設立新加坡非居民企業（以下簡稱「SNRC」）並於香港利用家族投資控權工具 （以下簡稱「FIHV」）作為分行開展業務；我將其稱為「新加坡司令」方案。

香港稅務局已頒布以下條例：
稅務局：家族投資控權工具的税務寬減

新加坡金融管理局（以下簡稱「金管局」）根據《新加坡所得稅法》（以下簡稱「所得稅法」）第13O節及第13U節所核准的新加坡家族辦公室，得適用稅務豁免。鑑於該稅務豁免之廣泛迴響造成目前的核准流程日漸冗長。

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然而，香港家族辦公室申請稅務豁免無需透過冗長的核准流程。因此，對某些較具急迫性的家族而言，先將香港做為過渡據點（或最終目的地），亦不失為可行的解決方案。

為何要採用「新加坡司令」方案呢？根據所得稅法第2節（第134 章）之定義，「新加坡居民企業」即為「於新加坡境內控制與管理其業務之企業」。所得稅法第10 (1)節則表明：「發生或來源於新加坡境內之收入（屬地制）或被匯回新加坡之海外收入（匯款制）」均需繳納所得稅。因此，SNRC可使用免於新加坡繳納企業稅之利潤（如未匯回新加坡之海外收入）向其股東支付「免稅」股利。位於香港之分行則可以FIHV的形式享有稅務豁免。

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較具急迫性的家族仍可於取得金管局核准時關閉香港境內之分行，並根據所得稅法第13U節申請稅務豁免。由於香港不允許企業遷冊進駐，採用「新加坡司令」方案，即可避免設立被某些家族辦公室反對之海外企業。

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謹啟

張國光
保得利集團
www.portcullis.co