Regarding Option 4 of the CDR, how do you define: (i) operating companies and (ii) substantive presence in Singapore? (a) Does it count if the section 13O/13U fund invests into a foreign holding company that holds a non-listed Singapore-incorporated company with operating business(es) and with substantive presence in Singapore? (b) Would an investment into a Singapore holding/joint venture company which owns a wholly-owned Singapore subsidiary count?
- An operating company with substantive presence in Singapore generally has the following characteristics:
- Is a business entity that is registered in Singapore;
- Has at least 25% local shareholding interest;
- Has a minimum of 3 employees in Singapore; and
- Has an operating premise in Singapore.
- Entities that are involved in the business of trading or holding of Singapore immovable properties (other than one that is in the business of property development) do not qualify as investments under Option 4 of the CDR.
- For cases such as (a) and (b), the awardee must be able to demonstrate in its records that the definitions above are fulfilled.
This information is sourced from MAS
Related questions
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