{"id":823,"date":"2024-02-28T10:24:16","date_gmt":"2024-02-28T10:24:16","guid":{"rendered":"https:\/\/ledgengroup.com\/my\/?p=823"},"modified":"2025-11-07T07:03:01","modified_gmt":"2025-11-07T07:03:01","slug":"tax-residency-of-a-company-control-and-management","status":"publish","type":"post","link":"https:\/\/ledgengroup.com\/my\/tax-residency-of-a-company-control-and-management\/","title":{"rendered":"Tax Residency of a Company: Control and Management"},"content":{"rendered":"

Understanding Tax Residency in Singapore<\/h2>\n

Under the Singapore Income Tax Act (\u201cITA\u201d), a company is regarded as a tax resident1<\/sup>\u00a0<\/span>of Singapore if the \u201ccontrol and management\u201d of its business is exercised in Singapore.\u00a0 However, the ITA does not further define \u201ccontrol and management\u201d.<\/p>\n

For individuals, our Singapore income tax for foreigners<\/a> guide explains how tax obligations differ for non-residents and expatriates.<\/p>\n

What \u201cControl and Management\u201d Means for Companies<\/h2>\n

\u201cControl and management\u201d of a company is taken to mean important strategic decisions taken by the Board of Directors. This could include matters such as potential investments and business opportunities, divestment of investments, financing needs and company\u2019s policies. \u00a0The location of the board meetings where such decisions are made would determine the place of residence of the company for\u00a0<\/span>tax services in Singapore. Companies should also consider corporate tax planning<\/a> strategies to ensure their operations and decision-making processes align with Singapore\u2019s tax residency rules.
\n.<\/p>\n

With technological advancement, it is now common for board meetings to be held via conference calls and video-conferencing for more efficient decision making.\u00a0 This could well be the underlying reason for the Inland Revenue Authority of Singapore (\u201cIRAS\u201d) to reduce the emphasis of physical meetings and to amend its stance on how tax residency of a company is to be ascertained.<\/p>\n

With effect 29 November 2023, where a Board of Directors meeting of a company is held by means of virtual meeting technology2<\/sup>, it will generally be regarded that strategic decisions are made in Singapore provided that either of the following conditions is met:<\/p>\n

    \n
  1. At least 50% of the directors who have authority to make strategic decisions are physically in Singapore during the meetings; or<\/li>\n
  2. The Chairman of the Board of Directors (if such an appointment exists in the company) is physically in Singapore during the meeting.<\/li>\n<\/ol>\n