Personal Service Companies and the Tax Avoidance Surcharge in Singapore

Posted: 4 Jan 2023

See all articles by Vincent Ooi

Vincent Ooi

Singapore Management University - Yong Pung How School of Law; Singapore Management University - Centre for AI & Data Governance

Ben Chester Cheong

Singapore University of Social Sciences

Date Written: January 3, 2023

Abstract

Incorporation of personal service companies provide tax and non-tax advantages. With the introduction of a tax avoidance surcharge in Singapore, incorporation for non-tax advantages risks additional “tax costs” if challenged by the revenue authorities, introducing uncertainty and litigation costs. Instead of relying on a GAAR, targeted measures should restrict tax advantages to the first company incorporated by each individual taxpayer.

Keywords: Personal service companies, Singapore, Tax avoidance, Tax planning

JEL Classification: K10

Suggested Citation

Ooi, Vincent and Cheong, Ben Chester, Personal Service Companies and the Tax Avoidance Surcharge in Singapore (January 3, 2023). (2023) 44(2) The Company Lawyer 59-65, Singapore Management University School of Law Research Paper , Available at SSRN: https://ssrn.com/abstract=4312081

Vincent Ooi (Contact Author)

Singapore Management University - Yong Pung How School of Law ( email )

55 Armenian Street
Singapore, 179943
Singapore

HOME PAGE: http://vincentooi.com

Singapore Management University - Centre for AI & Data Governance ( email )

55 Armenian Street
Singapore
Singapore

Ben Chester Cheong

Singapore University of Social Sciences ( email )

461 Clementi Road
599491
Singapore
(65) 62408816 (Phone)

HOME PAGE: http://www.suss.edu.sg/about-suss/faculty-and-staff/detail/ben-chester-cheong

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