In Singapore, individuals or organisations can establish a trust or hire an asset management company. Setting up trust businesses that offer services that are subject to regulatory regulations and have precise legal obligations to follow when managing wealth management matters.
A trust is a formal agreement in which an individual (the settlor) gives control of his property to another individual (the trustee) to manage and preserve on behalf of the settlor and the beneficiaries. Put another way, you transfer beneficial ownership of the assets to the recipients and legal ownership to the trustee.
This separation of ownership into legal and beneficial categories results in the many benefits of a trust, such as:
• Avoiding the formalities associated with probate and ensuring quick distribution.
• Distributing resources in a flexible and organised way.
• Keeping control of your investments
• Taking care of dependents who are at risk
• Defending the family’s fortune against heirs and other claimants
• Covering emergency medical costs and other costs
• Strengthening lawful confidentiality
• Assisting charitable organisations
• Combining ownership of assets
• Tax planning
Singaporean trust companies
For those in Singapore who require asset and wealth management, a plethora of businesses provide trust services. These statutory bodies are subject to specific laws since the city-state oversees the trust services industry. The most significant legislation governing the formation and operation of these kinds of businesses in Singapore is the “Trust Companies Act.”
When providing services in Singapore, trust businesses must adhere to financial and reporting regulations, possess the necessary permits for their business operations, and refrain from engaging in financial fraud or money laundering activities.
Our Singaporean accounting firm can respond to your inquiries about tax obligations and reporting for businesses and individuals with income within the city.
Singapore’s trust fund
The diversity of assets that might be entrusted to management has led to the creation of trust funds, one of the most common organisations in Singapore. These can be in the form of cash, property, shares, or even family companies. A trust deed, a declaration by the settlor stating their intention to establish one, or even a will, could establish the trust fund.
For foreign nationals residing in Singapore, the trust fund can also be used as a means of safeguarding their assets.
Establishing a trustee to oversee the assets specified in the creation agreement is a prerequisite to creating a trust.
Our local accountants can explain the taxes imposed on the settlor, trustee, and beneficiaries. They can also offer other fiduciary services related to these companies.
The advantages of trust in Singapore
Secrecy and safeguarding assets rank among the most significant legal benefits of establishing a trust in Singapore, among many other advantages. It should be mentioned that assets can be shielded from claims of heirship by using a trust. One of the key advantages of building any kind of trust is the availability of trust services in Singapore.
The trust is immune from capital, estate, and inheritance taxes from a taxation perspective. Furthermore, under the agreements the city-state has signed, foreign nationals setting up trusts in Singapore can benefit from double taxation protection.
Trust the services provided by our Singaporean accountants
Those who set up trusts might benefit from several services provided by our accounting firm in Singapore. Among them are:
• Tax guidance,
• Tax advice,
• Opening of a bank account.
For their businesses in Singapore, foreign investors and nationals can also take advantage of a range of accounting and audit services. In addition, we assist with employment-related issues, including payroll processing. In Singapore, along with other nations, payroll refers to the method by which a company pays its staff members. The phrase describes how a business pays its employees and any related taxes when it comes to its financial records for employee remuneration. For all kinds of enterprises that rely on our Singaporean accountants, this procedure is crucial.
Tax advantages for Singaporean-created trusts
The trust offers several tax benefits, including the ones mentioned above, where a few exemptions from several taxes are given. It should be mentioned that the only people who will be taxed are trustees.