Personal service companies and the tax avoidance surcharge in Singapore

• Main Authors: OOI, Vincent, CHEONG, Ben Chester
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: Personal service companies; Singapore; Tax avoidance; Tax planning; Asian Studies; Tax Law
• Online Access: https://ink.library.smu.edu.sg/sol_research/4182; https://ink.library.smu.edu.sg/context/sol_research/article/6140/viewcontent/Personal_Service_Companies_and_the_Tax_Avoidance_Surcharge_in_Singapore.pdf
• Institution: Singapore Management University

Incorporation of personal service companies provide tax and non-tax advantages. With the introduction of a tax avoidance surcharge in Singapore, incorporation for non-tax advantages risks additional “tax costs” if challenged by the revenue authorities, introducing uncertainty and litigation costs. Instead of relying on a GAAR, targeted measures should restrict tax advantages to the first company incorporated by each individual taxpayer.