The company should have paid up capital of S$ 200,000 at the end of year one and S$500,000 at the end of year 3 of the incentive period.īy the end of the third year, the company needs to have set up an entity such as a subsidiary, sister company, branch, joint venture, franchise or representative office in three countries outside of Singapore.
If the minimum requirements are fulfilled by the end of the third year within the incentive period, the concessionary tax benefit could be extended for another two years.Ĭorporations that are applying to setup a Regional Headquarter (RHQ) in Singapore are required to meet all the minimum requirements as follow to be considered for concessionary tax rates provided under the EEIA ( Economic Expansion Incentives Act) on their qualifying income. Key Benefits of International (IHQ) and Regional Headquarter (RHQ) ProgramĬompanies that meet requirements to setup IHQ or RHQ in Singapore will enjoy a concessionary tax rate of 15% (versus headline corporate tax rate of 17%) for 3+2 years on incremental qualifying income from abroad, which is defined as Income from approved qualifying activities less the base income (annual net profit before tax as shown in the company’s audited accounts) with the purpose of supporting the company’s international growth.
Political stability, excellent information and communications infrastructure, as well as the availability of skilled professionals are some of the popular reasons for the move, but one other critical factor has been the enormous tax benefits that are offered to businesses. In recent years, a great number of corporations are moving their international or regional headquarters to Singapore.
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