Amendments to Hong Kong’s Foreign-sourced Income Exemption Regime under Consultation

Amendments to Hong Kong’s Foreign-sourced Income Exemption Regime under Consultation

In June 2022, the Hong Kong SAR (HKSAR) government released a consultation paper proposing amendments to the foreign-sourced income exemption (FSIE) regime for passive income to address European Union’s (EU) concerns of non-taxation of passive income, where the income recipient has no substantial economic activity, highlighted on October 2021. HKSAR commits to amend its tax laws by 31 December 2022 and to be applicable as of 1 January 2023.

Image from unsplash website

 

Under the new proposed new FSIE regime, offshore passive income, including interests, income from Intellectual Properties (IP), dividends and gains from the disposal of shares or equity interests, would be deemed sourced from the HKSAR and deemed taxable if:

• the income received in the HKSAR by a constituent entity of a multi-national enterprise (MNEs)
• the receiving entity fails to meet the economic substance requirement for non-IP passive income or fails to comply with the nexus approach for IP passive income

In-scope offshore passive income would continue to be exempt from tax if certain conditions are met.

 

For enquiries, feel free to contact us:

Ho Kah Chuan
Email: kahchuanho@goglobalgem.com

Success case on the IHQ-DEI programme – Company C

Success case on the IHQ-DEI programme – Company C

Recently, with the help of Go Global Gem, Company C has successfully started on their Singapore “Headquarters Project Plan” through the approval of Singapore Economic Development Board (EDB) to  explore new markets and businesses.

 

1. What is the International Headquarters Development and Expansion Incentive (IHQ-DEI)?

IHQ-DEI is a Development and Expansion Incentive Under the International Headquarters Award, also known as the  Singapore ‘Headquarters Project’.

The Development and Expansion Incentive (DEI) aims to encourage companies to grow capabilities and conduct new or expanded economic activities in Singapore. Companies that conduct global or regional headquarters (HQ) activities of managing, coordinating, and controlling business activities for a group of companies may also apply for the DEI for the HQ activities. The Singapore Economic Development Board (EDB) administers the incentive.

The image from pexels  website

 

2. Artificial Intelligence (AI) + High Efficiency Computing and Two-wheel Drive

Company C is a chip design company, with “blockchain + AI” as its diversified business strategy, positioned in the new digital infrastructure and computing power, and with “enhancing social operation efficiency and improving human lifestyle” as its development vision.

Company C is one of the few companies in the world that have accumulated advanced technology in the ASIC design process. The company’s R&D centers are located in Beijing, Hangzhou, Shanghai and Shenzhen, China. Company C sets up a high efficiency computing department and an artificial intelligence (AI) business group, “AI + High Efficiency Computing” and “Two-wheel Drive”, where they build  the core computing engine for the new digital infrastructure.

In the process of enterprise development, Company C will further realize business diversification and explore new markets around the world. Through in-depth investigation and analysis,  company C decided to develop new business in Singapore.

According to the business development needs of  Company C, Go Global Gem has formulated a very suitable plan for  them. With Go Global Gem’s active follow ups on the entire submission process such as material preparation and liaising, on 29th April 2022, Company C has successfully gotten Singapore EDB approval!

Image/Company C has successfully passed the IHQ-DEI, any pirated act will be subjected to investigation.

 

3. What are the advantages of the DEI?

Companies approved under DEI are eligible for a corporate tax exemption or preferential tax rate of 5% or 10% respectively, on income derived from qualifying activities.

Companies which are prepared to make significant investments in economic contribution or capacity improvement in global leading industries can apply for DEI. DEI awards may also be accompanied by international headquarters, command and Command award status for companies committed to substantive command activities in Singapore to manage, coordinate and control regional operations.

The image from pexels  website

 

4. How does IHQ work?

Tax at a concessionary rate of 10% would be imposed on your entity’s qualifying income in excess of the base income. The qualifying income shall be income derived from the qualifying activities.

Qualifying headquarter activities only include the following:

• Management, coordination and control functions of business activities for the group
• Sourcing and procurement
• Supply chain management
• Marketing control and planning
• Human resource management
• Provision of legal services
• Provision of finance services
• Provision of brand management services

The base as well as non-qualifying income would be taxed at the normal corporate tax rate. Any loss (i.e. unabsorbed allowances, losses or donations) arising from qualifying activities would be treated as concessionary rate loss for the purpose of applying Section 37A of the Income Tax Act.

5. Application Process
The DEI application process is as follows:
Step 1. Preparation of Business Plan
Step 2. Arrange for a consultation with the EDB
Step 3. Review incentive application form
Step 4. Submit the application form
Step 5. Evaluate of draft incentive approval letter and review of final letter

The image from pexels  website

Go Global Gem has a team of professionals that specialise in this area of expertise. The company has a track record of working on a variety of capital investment programmes and global business planning for a number of enterprises.

 

If you would like to know more, please consult our business manager.

For enquires:
Desmond Chew
desmondchew@goglobalgem.com

Case: T Company Successfully Applied For Tech@SG Program To Develop Overseas Smart Technology Market

Case: T Company Successfully Applied For Tech@SG Program To Develop Overseas Smart Technology Market

Singapore is a country that places great emphasis on technological developments. Since 2019, a total of S$ 4.6(about RMB 23 billion) will be invested in related to the new economic initiatives over three years to help companies upgrade their industrial skills. (Date source: Economic Daily News)

Innovation is a key driver of Singapore’s economical development, and for this reason, Singapore has launched the Tech@SG program to attract more research companies and talents. Recently, T Company has successfully applied for the Tech@SG program with the help of Go Global Gem. Next, we will bring you a case study sharing in this regard.

 

01、Advantages of Tech@SG Singapore

Tech@SG, is a major programme launched by the Economic Development Board(EDB). it aims to help fast-growing companies access the key talent they need to grow and expand their business in Singapore and the region.

For eligible companies, Tech@SG can provide support to the Ministry of Manpower(MOM) of Singapore to reduce the risk of rejection of their Employment Pass(EP) applications to MOM.

Should your company qualify, you will receive:
① Provide up to 10 EP work permits for your Singapore core team of expatriate employees over a two-year period;
② Thereafter, coverage for the first renewal of an EP permit obtained under the program (each renewal is valid for a maximum of 3 years).

·Image From pixabay

02、Why Should Companies Apply To Tech@SG

T company is a leading technological company dedicated to making life smarter by providing a cloud platform that connects everything, creating a connected development standard that connects brands, OEMs, developers, retailers and industries with their smart needs.

Previously, T Company has been successfully listed on the New York Stock Exchange and has established companies in China, Germany, the United States, Japan, India, Colombia and other countries. To better manage the Group’s business in each country/region and to accelerate its expansion into the global smart technology market, T Corp plans to set up its international headquarters in Singapore.
After being introduced by industry insiders, the executives of T Company established a close contact with the team of Go Global Gem. After understanding T Company’s needs, we developed a detailed Tech@SG project plan for them.

After Go Global Gem’s careful planning, T Company successfully passed the approval of Tech@SG project in Singapore. In the future, T Company will set up its international headquarters in Singapore, and will also establish an overseas business center, including R&D, finance and sales departments, to continuously accelerate the layout of overseas markets.

03、Application Requirements and Processes

1、Tech@SG Application Requirements

① Requirements for companies:
1) Incorporating a business entity in Singapore with the Accounting and Corporate Regulatory Authority (ACRA).

2) Having a digital or technology product as your core business product or service, this includes situations where the company has a business model based on proprietary hardware or software technology.

3) Received more than US$10 million (cumulative) in investment capital in the last 36 months.

4) Received funding (no minimum amount) from a program-approved investment company within the last 36 months.

·Image From pixabay

②Requirements for individuals:
The EP card is issued by the Ministry of Manpower of Singapore. After ensuring that the company is eligible to apply for Tech@SG, you must also ensure that the individual applying for the EP meets all of the following requirements:

1) The applicant’s fixed monthly salary meets MOM’s minimum EP wage.

2) The applicant passes MOM’s background and due diligence checks.

3) The applicant’s function and qualifications meet the following conditions, i.e., he/she is a core member of the team.

4) Functional role: Applicants should be in either business function or technical function role.

5) Qualifications: The applicant’s position should be at the managerial level and above.

Note: Applicants in analysts, associates, executives and representative level positions will not be considered for the core team.

·Image From pixabay

2、Tech@SG Application Process

①Pre-application:
Before applying for the Tech@SG program, be sure to establish a business entity with ACRA, check that your company meets the eligibility criteria for the program and that you have prepared the relevant information for the application form.

②Apply For Tech@SG Accreditation:
-For local shareholding exceeding 30%, application to Tech@SG may be submitted to EDB.

-Local shareholding ≥ 30%, application should be submitted to Startup SG, an entity under the Enterprise Singapore.

-If you do not already have one, please consider setting up an EP Online (EPOL) account at this stage, which requires an EP application to be submitted to MOM.

③Application for Individual EPs:
After ensuring that the Tech@SG scheme is approved by the Economic Development Board of Singapore, you can submit an EP application for your employees.

④More Support:
After 10 successful EP applications or two years of support, whichever is earlier, EDB/Enterprise Singapore will notify you at the end of the support. In addition, EDB and Enterprise Singapore offer a suite of services to assist companies in setting up and expanding their business in Singapore.

·Image From pixabay

In the future, Singapore will inject more resources and investment in research and innovation to support research and innovation in local universities and research institutions, nurture more talents in science and technology innovation, and establish wider international partnerships to integrate existing domestic and international talent programs to form a comprehensive international talent cultivation program.

If you want your enterprise to accelerate technological innovation and expand its market, Singapore will be your best choice. At the same time, Overseas Treasure will help you achieve your grand strategic goal of overseas expansion by integrating Internet + technology + finance and other multi-channels to empower your enterprise development!

 

For enquiries, feel free to contact us:

Ho Kah Chuan
Email: kahchuanho@goglobalgem.com

Everything You Need to Know About Singapore Permanent Resident (PR) Application

Singapore has continuously been regarded as one of the best countries in the world for living standards.

Healthcare, crime rates, educational institutions, infrastructure, housing quality, business prospects, and unemployment rates are all examples of tangibles. Or intangibles like racial peace, a multi-cultural and multi-national society, and access to some of Asia’s most beautiful tourist destinations. Singapore stands out from the crowd!

The city-state has been rightfully dubbed Asia’s business capital and the continent’s best destination to live, work, and play.

As a result, gaining a permanent resident (PR) status in Singapore, which may serve as a bridge to Singapore citizenship, makes sense. Even more so when this PR status comes with Central Provident Fund benefits as well as a variety of personal tax exemptions.

In this article, we’ve included all the information you’ll need when applying for Permanent Resident (PR) status in Singapore:

 

Permanent Resident (PR) Application

 

PR Application Requirements

As a foreigner, you may be eligible to apply PR if you are a/an:

  • Spouse of a Singapore citizen (SC) or Singapore permanent resident (PR)
  • Unmarried child aged below 21 born within the context of a legal marriage to, or have been legally adopted by, a SC or PR
  • Aged parent of a SC
  • Holder of an Employment Pass or S Pass
  • Student studying in Singapore
  • Foreign investor in Singapore

Note: Factors such as the individual’s family ties to Singaporeans, economic contributions, qualifications, age, family profile and length of residency, to assess the applicant’s ability to contribute to Singapore and integrate into our society, as well as his or her commitment to sinking roots.

Here’s a guide on how you can start applying for Singapore Permanent Resident (PR), Click here.

 

Required Documents (Important)

You must read the explanatory remarks below and submit the appropriate supporting documents stated below via the e-Service if you are a/an:

Spouse of a Singapore citizen or PR, or unmarried child of a Singapore citizen or PR under the age of 21:

Explanatory Notes/Document List for Spouse with/without accompanying child(ren)

Explanatory Notes/Document List for Child(ren) Only  

Explanatory Notes/Document List for an Aging Parent of a SC

Explanatory Notes/Document List for Employment Pass or S Pass Holders

Explanatory Notes/Document List for students studying in Singapore.

If you are a foreign investor in Singapore, Go Global Gem can assist you to apply for permanent residence under the Global Investor Programme (GIP). GIP is administered by the Singapore Economic Development Board (EDB).

 

Procedure

The e-Service must be used to submit all permanent residence applications. Applicants have the option of entering their information online or downloading and filling out the PR application form before submitting it online.

You can submit a PR application online if you have a valid Singpass account and you are a:

  • If you are a Singapore citizen or PR filing for PR for your spouse or unmarried kid under the age of 21,
  • You are a Singapore citizen who is applying for permanent residency for your elderly father.
  • Holder of an Employment Pass or S Pass who is filing for PR for themselves, their spouse, or an unmarried kid under the age of 21.

If you are a student studying in Singapore, you can use your Foreign Identification Number (FIN) and the issuance date of your valid immigration pass to access the e-Service.

If you are a foreign investor in Singapore, you can apply for permanent residency under the Global Investor Programme at the Singapore Economic Development Board.

 

Submission of PR fees

Each applicant must pay a non-refundable processing cost of S$100 when submitting a PR application.

Payment options include:

Visa or MasterCard credit/debit card, American Express (AMEX) credit card, Internet Direct Debit (Internet Banking accounts in Singapore), or PayNow.

 

PR Approval

If your application is accepted, you will be required to fulfill PR requirements in our ICA office. Each candidate is responsible for the following fees:

S$20 for Entry Permit

S$50 for 5-Year Re-Entry Permit costs

S$50 for Identity Card

S$30 for each Entry Visa (foreigners requiring a visa).

The fees shown above can be paid using NETS, a credit card (Visa/Mastercard), or a mobile payment.

 

PR Application Processing Time

ICA thoroughly considers and reviews all applications for PR. PR applications typically take six months to process, if all relevant paperwork is presented. Some applications may take more than six months to process, depending on the complexity of the situation.

The outcome will be sent to you via mail or email. Meanwhile, you or your sponsor can use MyICA or the e-Service to check the status of your PR application.

While the application is being processed, there is no need to contact ICA.

(Important) While the current application is being processed, new or repeated applications for the same person(s) will not be allowed.

 

How to Appeal a Rejection of a Singapore PR Application

If your Singapore Permanent Residency application was been rejected, you should file an appeal with the ICA within 30 days of the rejection date (despite the appeal window period being up to 6 months).

It is usually best to complement your appeal letter with relevant supporting documents backing up your appeal claims when submitting an appeal to the Immigration and Checkpoints Authority (ICA) to request a reconsideration of your Permanent Residency application.

It’s best to avoid expressing that you’d like to stay in Singapore because of its cleanliness, decent economy, or other reasons why you appreciate being there. Instead, to make a strong appeal and boost your chances of being reconsidered, you should concentrate your appeal letter on:

1. Activities that demonstrate your integration into Singaporean society

2. Singaporean family relationships (if any)

3. Personal achievements of note

4. Extraordinary contributions to your work

5. Your goals for the future if your application is approved

6. Other aspects that you believe will highlight your assimilation into Singapore

 

Singapore PR Renewal

 

Request/Renew for Re-Entry Permit

 

Renewal Application Eligibility

To apply or renew a Re-Entry Permit, you must be a permanent resident and have a valid travel document that is valid for at least three months.

 

Required Documents & Procedure (Important)

Within three months of its expiration date, you must renew your REP online through e-Service. Unless ICA requests it, you are not needed to submit any documentation.

You can refer to our email on the documents required for your Re-Entry Permit application, as well as instructions on how to upload documents if ICA asks them.

If you are outside of Singapore and do not have a Singpass account, you can apply at the nearest Singapore Overseas Mission. It must be submitted at least two months before the expiration of your current Re-Entry Permit.

 

Renewal Fees

For each year or part of a year, of your granted Re-Entry Permit, you must pay a cost of S$10 (REP).

Each REP given is subject to a separate cost.

If you apply online, you must pay the cost within 14 days of receiving approval, otherwise, your application will be withdrawn. The Re-Entry Permit fee can be paid in these ways:

Visa or MasterCard credit/debit card, American Express (AMEX) credit card, Internet direct debit (Internet banking accounts in Singapore: DBS/POSB, OCBC, UOB, and Standard Chartered Bank), PayNow

Payment can also be made over the counter at ICA using the following methods:

NETS, Visa or MasterCard credit/debit card, mobile payment (Apple Pay, Samsung Pay, Google Pay, etc.)

 

Renewal Processing Time

The average processing period for a Re-Entry Permit (REP) application is one week (excluding the day of submission). Some applications may take longer to process than others.

If you applied for a REP online, you can use e-Service to monitor the status of your application. You will be notified of the outcome through email if you provided an email address during the application process.

 

For enquires please reach out to us:

Email: info@goglobalgem.com

 

Credits: 

ICA: https://www.ica.gov.sg/reside/PR/apply

Singapore PR Application: The Guide To Becoming A Permanent Resident

Singapore PR Application: The Guide To Becoming A Permanent Resident

With its iconic skyscrapers, “garden city” moniker and all-round stability and safety, it’s little wonder that Singapore is often considered as a country for immigration. Unlike many other choice destinations though, Singapore has a fairly open policy to receiving new permanent residents and it all starts with your PR application.

As of June 2021, there are 488,000 Singaporean permanent residents – one-eighth of the total resident population of almost 4 million (source: population.gov.sg). When you become a Singapore Permanent Resident, you are accorded much of the rights as a full citizen. Some of these include:

 

  • Able to live, enter and leave the country without the need for additional visa applications.
  • Be able to apply for long-stay visas for parents.
  • Gain access to better loans by institutions.
  • Permitted to buy resale public housing units (or HDB flats) from citizens.
  • Gain access to healthcare and work opportunities similar to citizens.
  • Be able to apply for full citizenship after committing a number of years as PR.

 

Sounds good? Then here’s how you start.

It all begins at the Immigration & Checkpoints Authority (ICA), where you can submit a PR application online as your first step.

But as with most immigration policies, some groups will have a smoother process. If you belong to these groups, it’s extremely advantageous to you securing that PR. Here are the schemes:

 

1. Professional, Technical Personnel and Skilled Workers scheme (PTS) Scheme

Available to those working in Singapore with an Employment Pass (EP) or Entrepreneur Pass (EntrePass), S-Pass, or Personalised Employment Pass (PEP) work permit.
This is usually the preferred route made available to foreigners working in Singapore. As candidates have lived and worked in the country for some time, it goes to reason that they will find it easy to integrate.
You’ll need: A relevant work permit, at least 6 months’ worth of documented payslips and be fully employed during the application process. To find out more about these work permits in Singapore, click here.

 

2. Sponsored Scheme

Available to a foreign spouse or unmarried children of the main sponsor who’s a citizen or PR.

Singapore understands how important family units are and so existing PR and citizens can file for their foreign spouse or single children to become PRs. This applies to those with a Dependent Pass (DP) as well, whether they are in Singapore or elsewhere during the PR application process.

You’ll need: Identification for the main sponsor who must be a Singapore citizen or PR, official documentation such as a marriage certificate for the spouse or birth certificates or legal adoption papers for the children.

 

3. Global Investor Programme (GIP)
Available to select foreign investors.
Unlike the other schemes which require a period of residence in Singapore, the GIP is a direct PR application that omits this requirement. As a country with few natural resources, Singapore’s economy leverages on attracting foreign investments as part of its strategy.  If you have a credible business track record or rich entrepreneurial legacies, you can submit your PR application through the Economic Development Board (EDB) website instead.
The qualifiers are more complex given the nature of the scheme, but some credentials you’ll need include: A 3-year track record with audited financial statements, having a minimum investment amount of S$2.5 million that goes into a local company, and having a turnover of at least S$200 million for three years before the application. More details – including those for investors – can be found here.

 

4. Foreign Artistic Talent Programme (ForArts)
Available to select artists.

While Singapore is globally-established as a financial hub, it’s not yet seen as an arts and cultural leader even though the scene has grown considerably in the last decade. This is why the government is looking to induct foreign artistic talent under this scheme. If you have shown promise and talent in creative skills such as those in dance, music, photography, fine arts, literature, film, or theatre, you’re in luck.

PR applications are assessed by the ICA but screened by the National Arts Council (NAC). You’ll need: Official documents showing relevant training and education in fields such as performing arts, visual arts, literary arts, design, media etc, proven professional experience in related fields, proven contributions to the local scene, and demonstrate an established wish to continue contributing to Singapore’s art scene.

 

5. Student Scheme
Available to foreign students.
Many education institutions have found Singapore a good base to receive regional and global students, and so Singapore has also made it easier for those studying here to become a PR and become part of the society.
You’ll need: Your active Student Pass, official documentation from the school, prove that you’ve been in Singapore for 2 years, and papers to show you have passed a national exam or in an Integrated Programme (IP).

 

These schemes greatly improve your chances to become a Singapore PR, and all you’ll need to do is to fill up the form online at the ICA website. For Singapore citizens or PR who are applying on behalf of the applicants, they can also do so via their assigned Singpass account. This is also available to Employment Pass or S Pass holders. Foreign students can opt for the online PR application using their Foreign Identification Number (FIN) and the issuance date of their valid immigration pass. An administrative fee of S$100 is required during the PR application.

Upon approval, you’ll need to formalise the papers in person at ICA, and also pay an additional S$150 (S$20 for Entry Permit; S$50 for a 5-year Re-Entry Permit; S$50 for Identity Card; S$30 per Entry Visa).

That said, the approval process is a holistic and considered one, and there are advantages in submitting supplementary documents or being aware of certain conditions which can have an impact on your plans when living in Singapore.

For example, Singapore has compulsory military enlistment for all male citizens. So male children who come in under the Sponsored Scheme must conscript into National Service when they become of age.

A specialised agency like Go Global Gem can become a consultative partner for your Singapore PR application, to ensure that no aspect is overlooked when planning for your immigration. Additionally, because the ICA considers organic factors such as family profiles, length of residency and other soft factors like one’s interest in building their lives in Singapore, an agency can tease out these helpful supporting facts during interviews.

Did you know that for artists, having a portfolio that includes local engagements at a leadership level is a great factor to add to your application? Or that special commendations or awards can also expedite the approval?

An experienced agency will not only provide the best solutions for faster approval and seamless PR application but also ensure that your immigration as a Singapore PR will be a fulfilling and rewarding one.

Eager to become a Singapore PR? Let Go Global Gem increase your chances and take care of your PR application for you.