Tax Planning
Lichen Singapore provide tax planning services to our clients, helping them minimize their tax burden and achieve optimal tax efficiency by devising sound tax strategies and planning schemes. We tailor strategies to meet specific financial and tax goals for our clients.
Project Workflow
Tax planning services aim to help individual and corporate clients minimize their tax burden through legitimate tax planning measures.
01
Tax Optimization
Provide personalized tax planning advice based on the client's financial situation and goals to reduce the tax burden and maximize financial returns.
02
Compliance and Risk Management
Ensure the compliance of tax planning schemes and manage related risks and compliance requirements.
Considerations for Tax Planning
Keep the business structure relatively simple, with a straightforward holding pattern
It can enjoy the corporate income tax benefits of the Singapore Start-up Tax Exemption (SUTE). It can receive tax exemptions of up to 75% for the first three years after incorporation.
Accept capital gains instead of operating income
For example, acquiring company stocks or purchasing company assets falls under the cost-benefit nature of non-maintenance fees, which are not subject to tax. If the primary income is of a capital nature, it cannot be exempt.
Ensure that the source and destination of income are not in Singapore
If overseas income is remitted back to Singapore, it will essentially be subject to taxation.
Reduce or avoid non-deductible expenses.
A typical example is avoiding interest expenses in a group holding company that receives tax-exempt dividend income because such interest expenses are non-tax-deductible. However, if the loan is used to purchase equipment, the interest expenses generated by the loan can be tax-exempt.