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Successful case: Company L was approved for its headquarters plan within 7 days. How does a multinational company apply for a 10% tax discount?

With a staggering investment of 8.4 billion, Alibaba is set to build a massive 64-story skyscraper that stands 305 meters tall in Singapore. This move highlights once again why big corporations are increasingly choosing Singapore as their preferred destination. The country’s favorable economic, technological, and tax incentives are some of the key factors driving this trend. One such incentive is the “International Headquarters Incentives” introduced by Singapore, which allows eligible companies to apply for a 10% tax incentive for a period of 5 years.

This tax incentive has proven to be highly attractive for multinational companies, as evidenced by the recent success of L Corporation in obtaining approval for the Headquarters Plan tax incentive with the assistance of Go Global Gem, a professional service provider specializing in international business expansion. What makes this incentive so appealing to companies like L Corporation?

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Advantages of International Headquarters (IHQ)

The International Headquarters, introduced by Singapore aims to encourage companies to establish and expand their businesses in Singapore, and use Singapore as their global or regional headquarters to carry out various headquarters activities such as management, coordination, and control of their business operations.

This tax incentive is managed by the Singapore Economic Development Board (EDB), and entities registered and operating in Singapore are eligible to apply for the Headquarters Plan.

1. Development and Expansion Incentive Under the International Headquarters Award

If your company meets the requirements of the relevant authorities in Singapore, you can enjoy a preferential tax rate of 10%. The tax exemption period is usually 5 years. If you plan to go overseas, don’t hesitate to get in touch with Go Global Gem, we have a professional team with rich industry experience to help you apply for the ideal tax incentives.

2. Go Global Gem International Headquarters service process

Preparation
According to the actual situation of the client, combined with the requirements of EDB, we will formulate solutions and business plans;

EDB interview
We will conduct interview guidance for the client and assist the client in conducting a formal interview with EDB, and deal with relevant follow-up questions;

Incentive application
We will submit an online application according to the EDB’s official guidelines.

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The venturing story of Company L

Company L, a vibrant and dynamic enterprise, has been making significant strides in the market since securing a ten-million-yuan A-round financing in 2014. Over the years, Company L has continued to grow with subsequent rounds of financing, including a 100-million-yuan B-round and multiple rounds of financing totaling hundreds of millions of yuan.

As part of its expansion plans, Company L decided to set up its headquarters in Singapore, recognizing the numerous advantages that the country offers. Singapore’s pro-business policies, alignment with the global economy, world-leading technological capabilities, and livable cultural environment were all key factors that influenced the decision-makers at Company L.

Through a deep partnership established with Go Global Gem, Company L received assistance in developing its International Headquarters plan. With well-prepared information and attentive follow-up from their dedicated account manager at Go Global Gem, Company L received official approval via email on February 27th. This successful collaboration has paved the way for Company L to establish its headquarters in Singapore and leverage the benefits of the Headquarters Plan tax incentives, further supporting its expansion plans and future growth prospects.

Picture: Screenshot of the email submitted by Company L to apply for the headquarters plan. If the picture is stolen, you will be investigated!


Application process:

On February 20th, the application was submitted;

On February 27, the application approved and Company L has received Letter of Award to confirm their iHQ status

Picture/Screenshot of the successful email application for the L company headquarters plan, theft of the picture will be investigated!

How to apply for the IHQ incentive?

If your company wants to receive a 10% tax incentive in Singapore by applying for the International Headquarters, the following conditions need to be met:

1. Requirements

Your entity will need to meet the following conditions, as well as all standard conditions in the Letter of Award (LOA):

  • Carry out at least one of the headquarters (HQ) activities in Singapore;
  • Employ at least 15 additional1 skilled employees, all of whom shall be based in Singapore by Year 3;
  • Incur additional2 annual Total Business Expenditure (TBE) of at least S$5.5 million by Year 3;
  • Employ at least 25 additional skilled employees, all of whom shall be based in Singapore by Year 5;
  • Incur additional annual TBE of at least S$9 million by Year 5.

2. Application forms

To apply for IHQ, the entity will be required to submit a formal application which will include the following:

A Core Form, which requires the entity to provide information on its projected incremental investment in terms of employment, fixed asset investments and total business expenditure.

A Sub Form, which requires the entity to provide additional information on skilled employment and headquarters activities.

Note: leave your comment to get the application forms.

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Go Global Gem is an Internet comprehensive accounting firm, headquartered in Singapore. We have an overseas localization service team with more than 20 years of industry experience. The members include senior tax accountants, certified public accountants, senior financial experts, overseas identity planning experts and human resources experts of the Big Four accounting firms. We provide customers with business services, overseas asset allocation, overseas identity planning and other enterprise or individual integrated solutions to go abroad.

If you or your business plan to go overseas, please contact Go Global Gem immediately and we will evaluate for you and tailor a solution for you.

If you have any questions, please feel free to contact:Ho Kah Chuan
Email: kahchuanho@goglobalgem.com