• Singapore Foreign Trust

  • Legal Framework

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

  • Registration Requirements

    There is no requirement for Singapore Foreign Trusts to be registered.

  • Settlor

    The Settlor should not be a permanent resident of Singapore.

  • Beneficiary

    The Beneficiary should not be a permanent resident of Singapore.

  • Trustee

    The Trustee should be a licensed trust company in Singapore.

  • Protector

    The appointment of a Protector is optional.

  • Perpetuity Period

    The maximum duration of a Singapore Foreign Trust is 100 years.

  • Property

    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.

  • Confidentiality

    Singapore provides confidentiality, which is enhanced by the fact that there are no registration requirements and therefore the details of the Settlor and Beneficiaries are not disclosed to any person other than the Trustee.

  • Taxation

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

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

    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.

  • Reporting Requirements

    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.