Transferring funds to Singapore - Risks?

[legaleagle]

Hi everyone – Are there any downsides/ risks associated with opening a US$ bank account in Singapore with a big bank (HSBC, Citi, etc.), and transferring some of the dormant US$ savings from a HK bank to Singapore? E.g., would one need to file taxes in Singapore or be subjected to any additional tax/ regulatory paperwork? I have heard from my banker that many HK people did this in the past few years – mainly so that all their savings are not held just in HK.

[shree711]

Hi everyone – Are there any downsides/ risks associated with opening a US$ bank account in Singapore with a big bank (HSBC, Citi, etc.), and transferring some of the dormant US$ savings from a HK bank to Singapore? E.g., would one need to file taxes in Singapore or be subjected to any additional tax/ regulatory paperwork? I have heard from my banker that many HK people did this in the past few years – mainly so that all their savings are not held just in HK.

None whatsoever. There is no such requirement to file any taxes in SG. You continue as normal to pay whatever you owe to HK. It's literally just an offshore account to do exactly the same as you would in HK. You just need to declare your tax residence in HK as per CRS which is done at account opening. Just pay attention to the fees you're charged. The only downside I can think of is that it's a bit clunky to track accounts in different places. But that's about it.

But I guess that's more funds moving out of HK.

[legaleagle]

Thank you. To confirm, even interest income from time deposits won’t lead to tax filings, right?

I have noticed that time deposit rates in Singapore are lower than Hong Kong, so there’s a bit of trade off with this transfer.

Are people still concerned about capital controls in HK and are they moving funds out of HK as my banker suggests?

[TheBrit]

Are people still concerned about capital controls in HK and are they moving funds out of HK as my banker suggests?

I don't think anyone sane has ever been concerned about capital controls in Hong Kong.

[LeftTC]

Thank you. To confirm, even interest income from time deposits won’t lead to tax filings, right?

I have noticed that time deposit rates in Singapore are lower than Hong Kong, so there’s a bit of trade off with this transfer.

Are people still concerned about capital controls in HK and are they moving funds out of HK as my banker suggests?

Interest from bank - saving account as well as time deposits is not taxable in Singapore. No need to file taxes in Singapore if you only have interest income from Singapore bank. Interest income from sources other than bank will be taxed.

[aw451]

Interest from bank - saving account as well as time deposits is not taxable in Singapore. No need to file taxes in Singapore if you only have interest income from Singapore bank. Interest income from sources other than bank will be taxed.

Are you sure this applies to Hong Kong tax residents?

[LeftTC]

Are you sure this applies to Hong Kong tax residents?

Yes.
https://www.iras.gov.sg/taxes/indivi...s-not/interest

Interest income from sources other than bank will be taxed - to clarify - I was referring to interest earned in SG and not to interest earned in HK for SG tax.

[redslert]

Credit Suisse is offering higher rates than HK if you are a high networth customer.
They were/are desperate for funds.

[shree711]

Thank you. To confirm, even interest income from time deposits won’t lead to tax filings, right?

I have noticed that time deposit rates in Singapore are lower than Hong Kong, so there’s a bit of trade off with this transfer.

Are people still concerned about capital controls in HK and are they moving funds out of HK as my banker suggests?

I know people who are keeping some funds in both places but there are plenty of people who are just not concerned about HK and keep all the money in HK banks too. I think it all depends on the size of the corpus. So there are some funds moving out.

[shree711]

Are you sure this applies to Hong Kong tax residents?

If SG isn't going to tax your interest income, HK has no concept of tax on interest income anyway.