Singapore Foreign Trust

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Singapore Foreign Trusts are governed by the Trust Companies Act 2005 which was revised in 2006.

A Singapore Foreign Trust will not be void or voidable in the event of the Settlor’s bankruptcy or liquidation thus achieving asset protection from creditors. However, the Trust may be set aside by its Creditors if it is proven to the satisfaction of a Singapore court that the trust was made by the Settlor with the intent to defraud its creditors.

There are no reporting requirements for a Singapore Foreign Trust other than an annual declaration which must be submitted to the Controller of Inland Revenue certifying that the foreign trust has met the conditions for tax exemption. This declaration must be submitted by a licensed trust company.

Singapore Foreign Trust Legal Requirements

Singapore Foreign Trust

Corporate Details

Restricted
  • Type of Entity

Foreign Trust
  • Registered Office in Singapore

Yes

Share capital or equivalent
  • Standard currency

USD
  • Permitted currencies

Any
  • Minimum paid up

None

Foreign Trustee
  • Minimum number

One
  • Corporate directorship allowed

Yes

Protector
  • Minimum number

One
  • Corporate shareholder allowed

NA

Accounts
  • Requirements to prepare

Yes
  • Audit requirements

No
  • Requirements to file accounts

No

Duration of Set up

2 Weeks

Taxation

Income derived by a Singapore Foreign Trust is exempted from tax. Exempt income includes the following:

  1. Interest and dividends derived from outside Singapore and received in Singapore in respect of any designated investments.
  2. Rents, royalties, premiums and any other profits arising from property derived from outside Singapore and received in Singapore.
  3. Gains or profits derived from sale of any designated investments.
  4. Distributions from foreign unit trusts derived from outside Singapore and received in Singapore.

Distinctive Benefits of the Singapore Foreign Trust

  1. There is no requirement for Singapore Foreign Trusts to be registered.
  2. The Settlor should not be a permanent resident of Singapore.
  3. The Beneficiary should not be a permanent resident of Singapore.
  4. The Trustee should be a licensed trust company in Singapore.
  5. The appointment of a Protector is optional.
  6. The maximum duration of a Singapore Foreign Trust is 100 years.
  7. There is no restriction on the property of a Singapore Foreign Trust. Assets can be added to the trust at any time during its life. 

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