I have a Singapore Company and a BVI Company. The services that I carry out in Japan are taken up in BVI company. But Singapore company signs the contract with my Japanese customers as agent for my BVI company. Will there be tax payable on the income from Japan that is paid to my BVI company? I think this is offshore services so should be tax-free?
2007-08-18 08:38:26 · 2 answers · asked by Blurr 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Your question is too complex with serious ramifications to trust an answer here. In theory a BVI company doing business outside of Singapore is not tax liable. However by signing the contract in Singapore you might have created a liability. Another question IRAS would ask is what is the remuneration of the BVI's Singapore Agent and what funds have been remitted to Singapore.
You really should contact a good Company secretary/accounting firm preferable with International exposure.
2007-08-19 14:29:11 · answer #1 · answered by Caretaker 7 · 0⤊ 0⤋
you may purely account for VAT once you're a VAT registered employer. you may sign up voluntarily in case you do no longer assume the previous 3 hundred and sixty 5 days turnover to exceed £sixty 8,000. given which you assume your turnover to exceed this could you may desire to sign up. BVI are a non-ecu united states so any aspects made to them could be exempt from VAT.
2016-12-13 11:40:18 · answer #2 · answered by ? 4 · 0⤊ 0⤋