A lot of rich people like to apply for permanent residency in SG. This is because it offers lots of advantages to wealthy people. If you have money, and would like to significantly reduce your tax bills legally, read the following.
If you are classified under a Singapore resident for tax purposes, then you will be able to enjoy from the following benefits. But what can make you qualify under this classification? If you are either one of the following, you will be categorized under it.
- A Singaporean citizen
- A permanent resident
- A foreigner who works locally for a period exceeding 183 days on an aggregate in the year in which relevant chargeable income was received
Since many rich people are either self employed, run businesses or manage their personal financial portfolio, most of their income usually come from capital gains or dividend income or something along these lines. As a result of that, they absolutely love becoming a Singapore PR because of the following reasons.
No capital gains tax
Many rich people deal or invest heavily with real estate or stocks or funds. However, selling them for a capital gain is either met with a huge cut to the government or one needs to roll the profits over into another immediate asset purchase. There is no need for either of that in Singapore. This is because there are no taxes on capital gains here. Do you begin to see why rich people love SG now? That is one of the many reasons why many wealthy foreigners invest through the GIP Singapore program to become a local resident here to benefit from this and more.
No dividend income tax
Many rich people get majority of their income from their fund portfolio or real estate rental income in the form of dividends. Few rich people work a job in the typical sense like the working class. However, there is absolutely no taxes on dividend income in Singapore! This is absolutely great news for those who want more in their own pocket! In fact, you get to keep 100% of it here!
No inheritance tax or estate duty
One of the biggest concerns about wealthy people is the passing down of wealth to their future generations. In certain countries, inheritance tax is very hefty, and most people dislike it because one’s descendants still have to pay taxes to the government after one’s parent or parents just died. However, and thankfully, this has been abolished in Singapore since 2008.
With no estate duty in SG, your legacy will be fully preserved for your future generations to come.