Open Singapore holding or consulting company to minimize Thai tax

[tool84]

Hi,

I'm reading more into taxes and ways to minimize the taxes my Thai company and I will have to pay and was wondering if anyone got experience in this before I contact firms in Singapore.

Option 1 is to open a holding company either in Singapore or Hong Kong. The way I understand this is the profits of the company is taxable before being sent to the holding company at 20% in my case. Then if I send in the form of dividends, it is taxed at 10%. Once in Singapore or Hong Kong I pay myself a dividend at 0% tax on the 31st of the year and send it to Thailand beginning of next year so that it's not taxable in Thailand.

Option 2 is to open a consulting company in Singapore that is not related to the Thai company and charge my Thai company as much as possible a consulting fee to send as much money as possible to the Singapore company. In Singapore anything under 300 000 Singapore dollar has a corporate tax of like 8,5%. Then I pay myself a dividend which is 0% tax. The only thing I'm not sure with this scenario is when I read the tax laws of Thailand under the section Withholding tax on foreign payments it says:

Remittance of income in the form of: Brokerage, fees for services 15%

I'm not sure if a Singapore company charging a consulting fee to a Thai company would fall under this category.

If you have any experience doing these kind of strategies, it would be good to hear you out.

Thanks

[falang07]

I would go on with option 2 and send dividends first to a personal account in Singapore, and keep it in there till the next year so that it could be sent to Thailand tax-free (no tax applies if funds are remitted to Thailand in the year following the year they were earned)