Finance & Treasury Centre Incentive
Topics To Be Discussed
Key Facts about the FTC Incentive
1. Company registered in Singapore and tax resident here;
2. FTC activities
Benefits of Singapore Finance & Treasury Centre Incentive
The FTC Incentive offers a range of advantages to approved FTC companies, facilitating their operations and growth within the financial landscape. Here's a brief overview:
- Tax Rate Reduction: Eligible FTC companies can benefit from a reduced corporate tax rate of 8% on income derived from qualifying FTC services provided to Approved Network Companies (ANCs), along with income from approved qualifying FTC activities.
- Withholding Tax Exemption: The incentive provides a withholding tax exemption on interest payments, such as interest on loans obtained by the approved FTC from various financial institutions outside Singapore, under the condition that the funds are utilized for approved qualifying activities or services.
- Duration and Extension: The incentive period spans five years, with the possibility of extension subject to the FTC company's commitment to further expand its FTC activities and services.
Eligibility Criteria for the FTC Incentive Singapore
For companies seeking to take advantage of the FTC Incentive, certain eligibility criteria must be met. The following key points outline the prerequisites for approval:
Substantive activities in Singapore: Engage in substantive activities in Singapore and undertake strategic functions
Quantitative and qualitative aspects: Evaluation of applicant companies will encompass both quantitative and qualitative aspects of the proposed FTC operations
Larger presence: Typically, an FTC is integrated within a larger presence of a company in Singapore, which may involve manufacturing, R&D, or various headquarters activities.
How to Apply for the FTC Incentive
How We Can Help
This series of articles regarding Singapore government incentives was prepared by CorporateServices.com, a leading Singapore-based corporate service provider. We offer a range of services for private limited companies in Singapore. Our team of experienced experts provides Singapore company registration and other incorporation-related services through our cutting-edge online platform.
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