Singapore Tax Residency Unaffected By Remote Board Meetings

Singapore will allow companies to maintain their tax residency status regardless of how pandemic travel restrictions affect where they hold their board of directors' meetings, as long as they meet certain conditions, the country's tax agency announced.

Companies resident in Singapore for the 2020 tax year that hold their board meetings outside the country or electronically will still be considered residents if there are no changes to their economic circumstances, the Inland Revenue Authority announced. Residency in Singapore depends where a firm controls and manages its business, the agency said.

The revenue authority defined changes as including those that involve the principal activities and business model of a company, the nature and conduct of the business in Singapore and elsewhere and the usual locations where the company operates.

Companies that are not Singapore tax residents but must hold their board meetings in the country will remain nonresidents, if again there is no change to their economic circumstances, the agency said. In addition, companies that must keep personnel in Singapore because of the novel coronavirus pandemic will not be considered to have a permanent residence in the country, the agency said.

Companies should maintain relevant documents and records to support their residency claims, the agency said. For example, they should keep board minutes stating why directors attended board meetings from their locations, the agency said.

--Editing by Vincent Sherry. 

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