Gaming Companies Favour to Collaborate with Singapore

Sep 14, 2022 elitestage No Comment

ACTIVE PROMOTION OF THE GAMING INDUSTRY

Government agencies in Singapore like Infocomm Development Authority (IDA) and Media Development Authority (MDA) exert considerable effort to bolster Singapore’s gaming ecosystem. The iN2015 Master plan laid out by the IDA consists of the Connected Games Programme, which positions the city-state as a vibrant core for games publishing and distribution in the region.This is accomplished by helping gaming companies to grow and build their capabilities. For that, the IDA strives to create a synergistic business environment where gaming companies have easy access to products, services and programmes.This is aligned with the IDA’s collaboration with the Casual Games Association, a global trade organization for the creation of games for mass market consumers. Together, they have launched the Casual Connect conferences in Asia, which accounts for the lion’s share of the global gaming industry with 48.4% of market share (Business Review, January 2014).The Republic has also managed to draw more than 6,500 professionals from the games industry annually by paving the way for these high-profile international games conferences and exhibitions in Singapore. This has solidified the nation’s stature as a regional hub for gaming.

SINGAPORE BOOSTS SUPPORT FOR GAMING COMPANIES

The Government has not only been proactive in creating opportunities for partnerships between gaming companies, but also matches them with investors, venture capitalists and angels.IDA links up locally incorporated gaming companies with in-market incubators and mentors with extensive experience in the gaming business. It also allows them to participate in in-market accelerator programmes. By doing so, IDA helps gaming companies to understand their market better and obtain guidance on the technical infrastructure required for their gaming businesses.In addition, MDA also provides grants to gaming companies to develop ideas into game design under the Development Assistance and Production Assistance initiatives. When these gaming companies acquire the intellectual property (IP) rights for their game designs, they can also qualify for the Productivity & Innovation Credit (PIC) that is issued by the Inland Revenue Authority of Singapore (IRAS). The PIC allows gaming businesses to enjoy 400% tax deduction, 60% cash payout and a dollar-for-dollar matching cash bonus.As a result, Singapore has attracted over 60 gaming companies that are involved in the conception, publishing and servicing of games to its shores. According to the Economic Development Board (EDB), the incorporation of top-tier foreign gaming companies in Singapore include Germany’s Real U, Taiwan’s Softworld, Italy’s Rainbow S.p.A, and Japan’s Tecmo Koei.This has allowed the games industry in Singapore to contribute a value add of S$504 million to the economy and rake in a revenue of S$587 million in 2012, according to the Deloitte Interactive Digital Media Survey 2013.

“As one of the fastest growing media sectors of the nation, the gaming industry of Singapore appears highly attractive to companies that are seeking to create, publish and distribute games content. The island nation is today Southeast Asia’s gaming nerve centre because on top of the Government’s support, it also has a world class talent base, excellent IT infrastructure, and a protective regime of IP rights”, said Mr. James Nuben, Head of Taxation at AsiaBiz Services.

WORLD CLASS TALENT POOL

Singapore has managed to create a world class talent pool for the gaming industry by nurturing and upgrading the homegrown talent base, and welcoming international talent.Singapore’s Ministry of Manpower recognizes the gaming industry as a key economic sector in Singapore and has identified game designers, programmers and producers among the occupations with strategic skills in demand.In addition, it has set up specialty schools for gaming such as the Digipen Institute of Technology, and the Singapore-MIT GAMBIT Game Lab, which is a partnership between the Massachusetts Institute of Technology and the Republic. While Digipen offers degree programmes in Real-Time Interactive Simulation and Game Design, the Singapore-MIT GAMBIT Game Lab serves to explore new strategies for the conceptualization of games as a medium.

Singapore’s corporate tax rate on chargeable income at 17 percent – is one of the lowest in the world, attracting business owners from various countries to set up or expand their businesses in Singapore.

1. Common types of companies in Singapore – What you should know

There are three common company types in Singapore, including Limited Liability Company, Partnership, and Sole Proprietorship.

In this section, let’s tap into the specific features of each type.

Limited Liability Company

You might have heard about a Limited Liability Company or LLC more than once before.It’s also a popular business entity in Singapore, which can be formed under private or public sector:Private sector: Private limited company by shares and Exempt private companyPublic sector: Public company limited by shares and limited by guarantee

Vorteile

Limited liabilityAs the owner of a Singapore LLC, you only take responsibility for the liabilities equivalent to the value of shares you contribute to the company.Separate legal statusYour LLC is a separate and distinct legal entity. So it can sign contracts, acquire and own assets, sue, or be sued under its own name.Tax advantage

Your LLC is subject to an income tax rate of 17%.

Besides, you’ll be eligible for a wide range of exemptions and reliefs from the government.

This can reduce your tax burden significantly.

Disadvantages

Running an LLC means you have to handle the paperwork.Still, a private limited company needs to fulfill fewer reporting duties than a public company.Specifically, your compliance requirements for Singapore LLC include:Filing tax returns with IRASFiling annual returns with ACRA

Holding AGMs (Annual General Meeting)

Submitting accounting reports

Other duties as required by relevant competent authorities

Discover the awesomeness of an LLC in detail with our guide to Limited Liability Company in Singapore!

Partnership

To establish a partnership, you’ll need at least 1 partner.Generally, a partnership does not have s separate legal entity. This means you and your partner will be jointly responsible for all company’s liabilities (unless you’re a limited partner).To summarize, the three main forms of partnership in Singapore are:General partnership (GP)Limited partnership (LP)

Limited liability partnership (LLP)

Key differences between GP, LP, and LLP
Legal status

LLP is a separate legal entity, while GP and LP are not.Partner’s liabilityIf you form an LLP, you can be a limited partner or general partner.A limited partner has liability limited to the investment. Whereas a general partner has unlimited liability.For GP and LP, the partners would hold unlimited liabilities for any company’s matters and losses.

Number of partners

A Singapore general partnership must have at least 2 partners, but cannot exceed 20.There is no maximum number of partners in an LP and LLP.

Tax rates

If you’re in an LLP, you’ll pay personal income tax (for individuals) or corporate income tax (for corporations).A Singapore partnership has less chance to gain tax relief than an LLC.

Sole Partnership

You can register a sole proprietorship easily. But managing and maintaining it can be quite challenging.A sole proprietorship is also known as a ‘one-man show’. This means you control the business on your own and take full responsibility for the company’s losses and liabilities.

2. Taxation

You’ll have to pay personal income tax depending on the level of your earnings. For Singapore residents, the rate is between 0%-22%. For non-residents, you’ll pay a flat rate of 15%-22%Businesses in Singapore benefit from Singapore corporate tax rebates, which differs for Years of Assessment (YAs). For YA 2018, this rate is 40% of corporate tax payable (capped at S$15,000) and for YA2019 it is at 20% of corporate tax payable (capped at S$10,000).In addition to the low corporate tax rates, there are schemes and grants offered by the Singapore government that can help reduce your Singapore corporate tax rates even further.

Share on

Leave a Comment Antworten abbrechen