I had a company in europe that closed with some debt that i need to make monthly payments to. Its not that much and i consider it a business debt. I have every intention of paying it off.

i have recently moved to singapore and setup a company here and intend to make the monthly payments to the debt from my company account. What i would like to know, are these payments tax deductible in any way? I am guessing not, but how would it be expensed in the accounts? just as profit but "moved to an offshore account"?

thanks

Hi thk and welcome to the forum.

I should say that I am not an accountant, though qualified for bookkeeping (UK and Singapore) sole traders and partnerships.

Just logically, that cannot be right IMHO. If you've got a business set up in Singapore, how can expense to do with another company (outside the country) be valid? I would say it's a no-brainer, but get some advice from a Singapore accountant... best thing to do.

If your Singapore business is making money... great... and you will pay Singapore tax.

yes, thats why i thought. To me it is the same company, the same name and everything, i just moved it from eu to sg, but legally and taxily (is that a word?) i realize they are completely different entities.

Yes that's it. We did the same. Moved business from UK to Singapore, but had to close the UK business, wind it up. Then open a new business in Singapore. But to all intents and purposes, was the same same.

The low taxes in Singapore are nice though