Singapore and the Global Web of Tax Haven Companies

TL;DR

Tax haven HQs are just the tip of the iceberg. Most companies registered in tax-friendly jurisdictions operate across major global economies, including Singapore. With over 28,800 firms tracked, data from Veridion reveals how offshore setups work — and what it means for professionals and policymakers in Singapore.

The Offshore HQ Illusion

When most people hear the term tax haven, they imagine palm trees, P.O. boxes, and corporate secrecy. But the reality is far more complex — and much more relevant to Singapore than many realise.

According to new data from Veridion, over 28,851 companies headquartered in 20 well-known tax havens have an active digital footprint that indicates real operations in other countries. On average, each of these companies is doing business in three other jurisdictions.

These aren’t shell companies. They have subsidiaries, staff, intellectual property, and generate revenue. And increasingly, they’re doing business in global economic hubs — like Singapore.

So, Where Are These Companies Really Operating?

Veridion’s research reveals the top five countries where these tax haven HQs are doing real business:

Interestingly, Singapore, Hong Kong, and the Netherlands appear on both sides of the equation — as tax havens and top operational destinations. These locations are playing double duty: enabling tax efficiency while remaining hubs for real commercial activity.

Why Base a Company in a Tax Haven?

It’s not always about evasion — in fact, most of the time, it’s perfectly legal. Companies often set up shop in tax havens to:

• Legally reduce their tax obligations

• Avoid restrictive regulations

• Protect trademarks and intellectual property

• Centralise inter-company financing or licensing

According to the OECD:

“Some jurisdictions offer preferential tax treatment for certain types of income, often related to IP or financing. These structures can lead to base erosion and profit shifting (BEPS), even if legal under current tax laws.”
(OECD Corporate Tax Statistics, 2023)

This kind of subsidiary strategy is particularly common among multinational corporations.

Case Study: Nike’s Global Tax Strategy

A striking example is Nike. Although headquartered in the United States, Veridion’s data reveals that Nike operates via a vast network of 139 subsidiaries:

• 64 in tax havens

• 33 in Europe

• 19 in Asia

• 19 in the US

• 12 in other regions

Singapore’s Role: More Than Just a Gateway

Singapore’s inclusion in this list is no accident. With a competitive 17% corporate tax rate, strong legal protections, and its position as an Asian business gateway, the city-state is a favourite for both regional HQs and real commercial operations.

But Singapore has made it clear it wants real substance, not just tax planning.

As Eugene Lim, Tax Partner at Deloitte Singapore, shared with The Business Times:

“Singapore’s focus is on attracting real, value-creating activities, not just passive income flows. Transparency and substance are key.”

This aligns with the government’s long-standing policy to attract genuine investments, R&D, and job creation — not just mailbox companies.

What This Means for Professionals and Investors in Singapore

So why should a Singapore-based professional or investor care about this?

Here are three reasons:

1. Multinational activity drives local opportunity

Many global firms using tax haven structures base real teams, tech hubs, or service centres in Singapore. This supports employment, innovation, and growth — but also exposes Singapore to global tax scrutiny.

2. Understanding corporate finance is a competitive edge

Whether you're investing, working at an MNC, or planning your own business, it pays to know how global tax strategies work. It helps you ask better questions, spot smarter opportunities, and stay on the right side of compliance.

3. Change is coming

With the global push for minimum tax rates and new OECD regulations under BEPS 2.0, these structures may be harder to sustain. Professionals need to stay informed as the rules evolve, particularly in high-growth hubs like Singapore.

The world of tax havens isn’t just about exotic addresses and clever accounting. It’s about how companies structure themselves globally — and how cities like Singapore play a pivotal role in this ecosystem.

Understanding the real footprint of offshore companies helps us make sense of the modern global economy. For Singaporean professionals, this is more than an academic topic — it’s a reality shaping the economy, regulation, and the future of business.