Certificate of Residence (COR)
Certificate of Residence (COR) is a letter issued by IRAS certifying that the company is a Singapore tax resident. The certificate allows the respective company to qualify for tax exemptions, and claim benefits under the Avoidance of Double Tax Agreements (DTAs).
Why apply for a COR?
If a company earn foreign income, it may be subject to tax in that foreign country. However, if there is a DTA between Singapore and the foreign country, the company may be able to claim tax benefits.
The Double Tax Agreement (DTA) is an agreement signed between Singapore and a foreign country (also known as treaty country). The agreement serves to relieve double taxation of income earned in one country by a resident of the other country. Depending on the agreed terms, the treaty country may provide tax breaks (e.g. tax credit or exemption) to Singapore tax residents on income derived from their jurisdictions. To enjoy the benefits, qualified residents must submit the COR to the foreign tax authority to prove that the legal entity is a Singapore tax resident.
What company can apply for a COR?
To be eligible to apply for a COR, the company must meet the following conditions:
- the Company is a tax resident in Singapore;
- most of the income that the Company earns must be ‘remitted into Singapore’; and
- the Company must be the ‘beneficial owner’ of the income.
Holding companies must meet additional requirements to be eligible for a COR. These include:
- providing reasons for setting up an office in Singapore; and
- providing evidence to substantiate that its management and control is in Singapore (management and control is usually the practice of having the management residing in Singapore and making important decisions).
How to apply for a COR in Singapore?
The applications are processed online via IRAS myTax Portal.
You can apply for:
- the current Year of Assessment (YA);
- the next YA; or
- up to four back YAs.
It normally takes around 7 working days for IRAS to process the application. Upon approval, the COR will be mailed to your company’s registered address. Along with a hardcopy via posting, an online copy will also be available on mytax.iras.gov.sg.