The Inland Authority of Singapore (IRAS) has updated its guidance on determining whether a company is a tax resident in Singapore in instances where technology allowing virtual participation is used in Board of Directors meetings.
Generally, a company is considered a Singapore tax resident for a year of assessment if the control and management of its business was exercised in Singapore in the preceding calendar year. The location of the company's Board of Directors meetings where strategic decisions are made usually determines where control and management are exercised. In certain cases, holding Board of Directors meetings in Singapore may not be sufficient and IRAS will consider all the facts provided by the company to decide.
IRAS has clarified that a Board of Directors meeting which involves the use of virtual meeting technology will generally be regarded as having strategic decisions made in Singapore if:
- at least 50% of the directors with the authority to make strategic decisions are physically present in Singapore during the meetings; or
- the Chairman of the Board of Directors, if the company has such an appointment, is physically present in Singapore during the meeting.