Incentive Under The Headquarter Programme
The Headquarters Programme offers incentive packages commensurate with the scale and value of the applicant’s headquarters operation in Singapore
q Regional Headquarters Award: This award offers a concessionary tax rate of 15% for 3+2 years on incremental qualifying income from abroad. If applicant company satisfies all the minimum requirements by Year 3 of the incentive period, it will enjoy the 15% concessionary tax rate for an additional 2 years on qualifying income.
The applicant company must satisfy all of the following minimum requirements by the milestone indicated and maintain till the end of the incentive period:
- paid-up capital of S$0.2 million and S$0.5 million by the end of Year 1 and Year 3 of the incentive period respectively.
- 3 headquarters services to network entities in 3 countries outside Singapore by the end of Year 1. Network entities refer to any entity within the group, including subsidiaries, sister companies, branches, joint ventures and representative offices as well as franchises.
- 75% skilled staff throughout the incentive period. Skilled employment refers to at least an NTC2 Certificate qualification.
- additional* 10 professionals in Singapore by the end of Year 3. Professionals refer to at least a diploma qualification.
- average remuneration per worker of S$100,000 per annum for the top 5 executive designations by the end of Year 3.
- additional* S$2 million in annual total business spending in Singapore by the end of Year 3. Total business spending refers to total operating costs minus the costs of work subcontracted outside Singapore , raw materials, components and packaging and royalties and know-how fees.
- additional** S$3 million in total business spending cumulatively for the first 3 years of the incentive period.
* The level at Year 3 - Year 0
** The level at (Year 3 + Year 2 + Year 1) – 3 x (Year 0)
q International Headquarters Award: This award is open to all entities incorporated in Singapore . For applicant companies that commit to exceed the minimum requirements of the Regional Headquarters Award, customised incentive packages with lower concessionary tax rates on qualifying income could be considered in discussion with the EDB.
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