Tax rates in the British Virgin Islands (BVI)

• Corporate tax: 0%. Companies are exempt from tax in the BVI on all sources of income, including capital gains, dividends, royalties & interest.
• VAT/GST: 0%. There is no VAT/GST in the British Virgin Islands.
• Personal income tax: 0%. There is a payroll & social security tax in the British Virgin Islands.

Population & Gross Domestic Product (GDP)

• Population:  27,800 in May 2012 (27,000 in 2005)
• GDP: US$853.4 millions in 2011 & US$43,373 per capita (2010)
• BVI Currency: US Dollar ($)

Major industries in the BVI

• Financial services constiture more than 70% of the GDP, mainly through the  registration of offshore companies domiciled in the British Virgin Islands (BVI)

For more details: British Virgin Islands (BVI) Taxation Law

To register a company in the British Virgin Islands (BVI) please visit www.Weisz-Offshore.com

Regardless of whether an individual is a resident, individuals are taxed only on Singapore-sourced income. Foreign-sourced income, even if remitted to Singapore, is not subject to income tax.

Dividends paid to an individual
Dividends paid to shareholders individual or corporate , residents or non-residents of Singapore are not subject to taxation in Singapore. There is no withholding tax on dividends paid by Singapore companies to non-resident shareholders.

Social Security Taxes
All employees, citizens & permanent residents in Singapore are required to participate in a social security savings : the Central Provident Fund (CPF). The contribution rate depends on the employee’s citizenship status, age and employer.

For more details: Singapore Taxation Law

To register a company in Singapore please visit www.Weisz-Offshore.com

GST: Goods and services tax
The standard rate of GST in Singapore is 7% since January 2007.

Supplies of goods and/or services in specific industries such as residential real estate are exempt of GST.
On certain conditions, exports can be exempt of GST.

Companies with an annual turnover over $1,000,000.00 SGD must register for GST.

For more details: Singapore Taxation Law

To register a company in Singapore please visit www.Weisz-Offshore.com

Companies not resident of Singapore
Withholding tax can be perceived on certain payments made to a non-resident company. The payer will have to withhold tax at the specified rates and to remit the tax withheld to the by the 15th day of the following month in which the payment was made to the non-resident company.

Dividends Withholding Taxes
There is no withholding tax on dividends paid to non-resident shareholders of Singapore resident companies.

Interest Withholding Taxes
Interest paid to a non-resident by a Singapore resident for tax purposes is subject to withholding tax at the rate of 15% on the gross amount paid to the non-resident. The tax rate can be reduced by the application of a relevant double tax treaty (DTA).

This rule doesn’t apply for interest paid to Singapore branches of certain non-resident banks when the Singapore branch has obtained withholding tax exemption from the Inland Revenue Authority of Singapore (IRAS).

Royalties Withholding Taxes
Royalties paid to a non-resident by a Singapore resident for tax purposes is subject to withholding tax at the rate of 10% on the gross amount paid to the non-resident.

For more details: Singapore Taxation Law

To register a company in Singapore please visit www.Weisz-Offshore.com

Capital gains are not taxed in Singapore.

Singapore has developped an extensive network of Double tax agreements (DTA’s). In March 2012 Singapore signed double taxation agreements with 69 countries and has limited treaties with 7 countries, including the United States of America (USA).
9 treaties or protocols to existing treaties are waiting to be signed.

Singapore Corporate tax rates
The corporate tax rate for resident & non-resident companies is at 17% since 2010.

Corporate taxpayers are exempted up to 75% of the first $10,000.00 SGD of their taxable income and for 50% of their taxable income for the next $290,000.00 SGD.

New companies are exempted from taxation on the first $100,000.00 SGD and on 1/2 of the next $200,000.00 SGD of their taxable income for any of their first 3 years 2008 onwards. To qualify for the exemption the new company must have all its shareholders as individuals, or have at least one shareholder who is an individual holding at least 10% of the shares of the company.

Capital gains taxes in Singapore
There is no capital gains tax in Singapore. Periodic or recurring Gains can be treated as income and might therefore be subject to taxation.

Loss deductions in Singapore
Companies can carry back their losses and capital allowances to offset past assessable income or carry forward their losses to offset future assessable income.

Group Consolidation Laws in Singapore
Unutilised losses, capital allowances and approved donations of a company incorporated in Singapore of a the current year, can be offset against the assessable income of another Singapore company that belong to the same group. Both companies must be incorporated in Singapore, belong to the same group and maintain an ordinary shareholdings of 75 %.

Controlled Foreign Company (CFC) rules
There is no Controlled Foreign Company (CFC) rules in applicable in Singapore.

For more details: Singapore Taxation Law

To register a company in Singapore please visit www.Weisz-Offshore.com

Tax rates in Singapore

• Corporate tax: 17% (top rate)
• VAT/GST :7% (standard rate)
• Personal income tax: 20% (top rate)

Population/GDP

• Population: 5,2 million ( January 2012)
• GDP: US$ 233.37 ( March 2011)
• Currency: Singapore dollar ($) (SGD)

For more details: Singapore Taxation Law

Corporation tax payers with turnover of less than €7,630,000, at least 75% of whose fully paid-up capital has been held continuously by individuals or a company meeting the same conditions are exempt from the contribution.

The social contribution is collected in the same way as corporation tax and with the same guarantees and sanctions. It must be paid spontaneously at the latest on the date on which the outstanding balance of corporation tax is paid. Four instalments are paid, at the same dates as corporation tax instalments, before payment of the final balance.

The social contribution on corporate profits is not a deductible expense for the purposes of calculating the assessment base for corporation tax.

It is expected to yield €1.15 billion in 2010.

Israeli residents are subject to individual income tax, capital gains tax and social security tax  on a worldwide basis. Non-residents are taxed only on income sourced in Israel.

An individual is a resident of Israel for tax purposes if his/her “centre of vital interests” is in Israel.

The Israeli Tax Authority looks at the family, economic and social relations of the individual. To resolve this issue, various criteria will be taken into account, including the following:

• The location of a permanent home, where the taxpayer can go as whenever he wants and that is ready for him to live in.
• The location of the taxpayer’s actual home and where the members of his family are (actual place of residence).
• The location of the of the taxpayer’s permanent business/work.
• The location of the of the taxpayer’s economic interests.
• The location of the taxpayer’s social activities (organizations, associations or institutions).

In addition to the above criteria, the number of days an individual spends in Israel and overseas also affects his residence status: an individual will be considered to be resident if he/she spends 183 days or more in Israel or if he/she was present in Israel for 30 days or more in a certain tax year, and total presence in Israel of 425 days or more during that tax year and the two previous ones.

An individual is not considered a resident if he/she left Israel for 2 consecutive years (183 days in each year), followed by two consecutive years in which his/her centre of vital interests was abroad.

Non-residents don’t need to file a tax return but might be subject to withholding taxes.

If you require clarification/assistance with you tax situation in Israel, feel free to contact us here.

The CFC rules are applicable to any foreign company controlled by Israeli Shareholders (50% of the shares) and that has accumulated undistributed passive income taxed at a rate below 20%. The Israeli shareholders will be assessed and taxed on their proportionate share of the undistributed income at a rate of 25%. This income will be considered as dividends. A tax credit will be granted for the amount of the foreign tax that would have been paid if the undistributed passive income had been distributed as such.

• Transfer pricing

Transfer pricing rules are applicable to transactions between a resident and a related non-resident party. On demand of the Tax authorities, taxpayers must provide a detailed transfer pricing study joint with their annual tax return to confirm the arm’s length nature of its transactions. Transfer pricing rules in Israel are based on the OECD guidelines.

• Group Consolidation

Israel doesn’t have any provision on Group Consolidation therefore consolidated return are not allowed. Each company in a group must file its own tax return. Certain type of companies qualified as “industrial companies” are allowed to file a consolidated return.

• Thin Capitalization

Israel does not have thin capitalization provisions.

If you require clarification/assistance with you tax situation in Israel, feel free to contact us here.

Double Taxation Prevention Treaty takes precedence, in all cases, over the Israeli Income Tax Ordinance. If certain income is taxable under the Israeli Income Tax Ordinance but there is an exemption or reduction under any Double Tax Agreement, the income is taxed, if at all, but only according to the provisions of the DTA.