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- Why do it
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- Why do it
Empowering businesses as Permanent Establishments (PE)
A Permanent Establishment (PE) is a fixed place of businesswhere significant management and commercial decisions occur. It establishes the company’s tax residency and serves as the central hub for governance and compliance. For businesses seeking tax efficiency and regulatory recognition, qualifying as a PE in Singapore is crucial.
Why is a PE Important?
Tax Residency Benefits
A PE qualifies your business for Singapore’s extensive tax treaties, reducing withholding taxes and avoiding double taxation.
Regulatory Compliance
Directors must be actively involved in governance and compliance. This ensures that leadership is equipped to manage your company’s obligations effectively and is not merely a symbolic appointment.
Global Credibility
Operating as a PE strengthens your business’s global standing by showcasing a stable and recognized operational base.
3 Key Requirements to Qualify as a PE
Strategic Decision-Making Hub
Your company must be a location where critical decisions are made. This includes board meetings to discuss strategic initiatives like appointing stakeholders, market entry strategies, and adjusting business activities.
Fit and Proper Leadership
Directors must be actively involved in governance and compliance. This ensures that leadership is equipped to manage your company’s obligations effectively and is not merely a symbolic appointment.
Business Continuity and Legitimate Operations
The company must maintain solvency, use financial accounts properly, and conduct transactions that align with its stated business activities. Misuse of accounts or non-compliance risks disqualifying PE status.
What We Do to Ensure PE Compliance
Facilitating Strategic Decision-Making
We help your board of directors conveneregularly to discuss and execute key decisions, ensuring your company operates as a true decision-making hub.
Appointing Experienced Directors
We ensure only fit and proper directors with relevant expertise are appointed, aligned with your business activities. These directors actively oversee compliance and governance, never serving as passive or symbolic participants.
Ensuring Business Continuity
We works diligently to maintain your company’s financial stability by:
- Providing access to appropriate banking and payment facilities.- Upholding governance standards, including reporting money laundering (ML) and financing of
terrorism (FT) risks3 fun facts about Singapore's efficiency
Tax Residency Advantage
Companies qualifying as PEs in Singapore gain access to over 80 double tax treaties, reducing tax burdens on international operations.
One of the World’s Best IP Hubs
A PE in Singapore allows companies to benefit from the country’s tax exemptions for income derived from intellectual property.
Global Connectivity, Local Expertise
Singapore’s PE framework ensures businesses can operate globally while maintaining a solid, locally recognized presence for strategic decision-making.
Establish your permanent establishment today
Qualifying as a Permanent Establishment in Singapore is your gateway to tax efficiency, compliance, and global credibility.
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