Singapore Tax Residence Certificate (COR): Conditions and issuance process

Companies in Singapore are grouped into two types: tax resident companies and non-tax resident companies. This classification is based on where the company is managed and operated. It helps decide the company's tax status in Singapore. 

Many businesses that operate overseas are familiar with Double Taxation Agreements (DTAs). These agreements help businesses avoid paying tax in two countries on the same income. However, only tax resident companies can enjoy the benefits of DTAs. To enjoy these benefits, a tax resident company must apply for a Certificate of Tax Residence (COR) in Singapore.

To help businesses Singapore company registration To understand the concept of COR and the benefits COR brings to businesses, businesses read the article below GLA.

1. Concept of Singapore corporate tax residence certificate (COR)

COR (Certificate of Residency) - A certificate confirming that a company is a tax resident in Singapore for the purpose of claiming tax benefits under Avoidance of Trouble Taxation Agreements (DTAs). Refer to information on DTAs on IRAS at here.

DTAs are bilateral agreements between two countries that help businesses avoid double taxation in the country where the income is earned and the country where the income is received. 

2. Reasons to register for a tax residence certificate (COR)

 COR aims to help Singapore companies:

• The tax benefits are provided by the companies in accordance with the Double Taxation Agreements and Limited Treaties that Singapore has signed with its member countries. Income received by a foreign individual or company from a Singapore resident company may be subject to tax under the laws of the country in which the individual/company is resident and also the country in which the income is received if the individual/company is not resident in Singapore.
• Under DTAs, treaty signatories can enjoy tax concessions (e.g. tax exemptions or lower withholding taxes) as Singapore residents on income derived in their home country.
• Exemption from tax on dividends, branch profits and service income derived from abroad under Section 13(8) of the Income Tax Act
• Miễn Singapore income tax reduction for newly established companies 

Note: 

• Singapore tax resident companies must meet additional conditions to receive the Limitation of Relief provision under the DTAs.
• A COR is required to be submitted to the tax authority of the treaty party to demonstrate that the company is a tax resident in Singapore.

3. Conditions for applying for Singapore Tax Residence Certificate (COR)

• Must be a tax resident in Singapore to apply for COR
• The following cases will not apply COR, depending on some special conditions: 

4. Procedure for applying for COR certificate - tax residency status for Singapore companies

5. How does GLA support businesses in registering for Tax Residence Certificates in Singapore?

GLA with its experienced staff supporting Singapore companies will assist Businesses in:

• Determine the tax residency status of a Singapore company.
• Support businesses in submitting and registering for the Tax Residence Certificate - COR of the business.
• Monitor and notify applications for tax residency certificates for businesses.

6. Frequently asked questions when Enterprises register for Tax Residence Certificate in Singapore

Highlights

• Singapore companies with a Singapore corporate tax residence certificate (COR) will enjoy double taxation avoidance benefits (DTAs). 
• Your company must be a tax resident in Singapore to be eligible to apply for a Singapore Corporate Tax Residence Certificate 
• Foreign-invested companies in Singapore and companies that are not incorporated in Singapore will not be able to apply for a Singapore tax residence certificate.